While the endorsement of numerous A-list celebrities accelerated the non-fungible token (NFT) boom of 2021 and 2022, some promoted unvetted projects to fans without knowing if they were legit or a scam. The practice retains its popularity in 2023 as markets recover.
We just tricked Dillon Danis into promoting a fake NFT project. We paid him $1,000 to publish, he did not disclose that he was a #ADVERTISEMENTand posted a copy that literally explains SCAM pic.twitter.com/SVo2SCoN9q
—Coffeezilla (@coffeebreak_YT) February 3, 2023
In the promo, Danis tweeted a digital image with the URL of a website that, according to Coffeezilla, “literally spells SCAM.” Further investigation by Cointelegraph shows that the website was newly created on February 1, 2023, an important clue to check when checking the credibility of new projects.
Also, the website’s FAQ mentions that no investor can get the “Sourz” NFTs, a crucial piece of information that the MMA fighter overlooks.
A similar incident involving Kim Kardashian was flagged in June 2021 by the United States Securities and Exchange Commission (SEC) when she promoted the EthereumMax (EMAX) crypto token to her 330 million Instagram followers. According to the SEC, Kardashian violated the Securities Act’s anti-advertising provision by failing to disclose the $250,000 she had received for the promotion.
However, Coffeezilla made sure that users who fell for the NFT project scam were notified immediately. When the users click the “Mint Sourz” button (as shown in the screenshot above), they are redirected to a website that warns against a possible scam.
While Coffeezilla plans to share more information via a follow-up video, the incident is a strong reminder for influencers and investors to do their own research before promoting or investing in a project.
Related: FBI Seizes $100K In NFTs From Scammer Following ZachXBT Investigation
Little Shapes NFT, a project launched in November 2021, was a “social experiment” designed to shed light on large-scale NFT botnet scams on Twitter, according to the pseudonymous founder Atto.
Thanks for participating everyone – Little Shapes was a social experiment of @BALLZNFT_
However, the exposure was real. Here’s how a ring of influencers and founders pulled over $200,000,000 from the ecosystem across 274 projects: https://t.co/BKMSqPVwzw
(158 pages) pic.twitter.com/gB5v21NCRo— Little Shapes NFT (BALLZ) (@LittleShapesNFT) February 1, 2023
“I needed a story that would sell to make sure that no one would ignore a story that hurts,” Atto explained in explaining his intention behind launching the NFT project.
Little Shapes was marketed as an upcoming avatar-style project with 4,444 NFTs that would allow owners to interact with and change the artwork in real time.
