Cryptocurrency is an endless market that always has something surprising and impressive. NFT was such a phenomenon that turn the whole crypto world upside down. There are still a lot of doubts and discussions around this virtual sector, but the fact of its popularity is obvious. GBC Time has listed the biggest NFT trading scandals of all time.
The constant movement and development of the cryptocurrency world have always brought some changes to the global economy. NFT trading has already stuck deeply into the crypto business. However, in direct proportion to the growth of NFT purchases, fraud cases also increase.
Scandals related to NFT trading can happen to everybody in the industry, but how to prevent it? These scandals below will definitely help you to understand the mechanism and system of fraud.
NFT Platform “OpenSea” Insider Trading Scandal
One of the most popular NFT platforms – “OpenSea” was embroiled in a scandal related to insider trading. This case involved a senior team member, that provoked the trading volume of non-fungible tokens to decrease from recent records.
OpenSea has recently confessed that the company had found out about the team member purchasing goods that were not published on the main page. After this happened, society was shocked. OpenSea announced that there will be new rules within the company that should improve the general principles of the company.
This might be considered to be a fraud case related to insider trading. Unfortunately, people lost their trust in this platform, which affected the general OpenSea development.
Find more about NFT frauds on the OpenSea platform in the video:
86 000 Plagiarized NFTs
Aja Trier – an artist based in Texas is specialized in bright and colorful pieces of art. She is also a fan of Vincent van Gogh’s Starry Night.
In January 2022, Trier reported that her art was stolen and licensed on OpenSea 86 000 times. She posted such an announcement on Twitter, which popped up the trends.
The August Sander 10K Collection
Popular German photographer August Sander has published a ton of incredible art to the world. Currently, some of them are included in the 10K collection, which is available in NFT. The main publisher was his great-grandson – Julian. Eventually, The Art Newspaper found out that he had no copyright to the artworks by his grandfather.
The top reasons for NFT scandals’ growth
- Insufficient understanding of NFT
- Scam projects that look very reliable
- Illiterate use of funds in NFT
A fast development drives the fast fraud growth. Therefore, the scammers see more perspectives in the market to scam the active users. Moreover, the experts insist on the decentralized exchanges’ popularity effect. In other words, DEXs drive more and more frauds as well.
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