Overview

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“Rug pulls” are crypto-scams perpetuated against investors in NFT projects, where creators offer a collection of NFTs for sale but ultimately abscond with investors’ digital Our findings reveal that repeated rug pulls account for a significant proportion of the rise in NFT-related cryptocurrency crimes, with one NFT collection attempting Scammers create a stealth drop NFT, which promises quick riches by providing exclusive access to rare NFTS. However, in reality, the victims are lured into a rug This study provides an in-depth analysis of NFT rug pulls, the fraudulent schemes that steal investors’ funds. From a curated dataset of 760 rug pulls across 10 NFT However, the latest update saw the rugpull frenzy shift toward the trending move-to-earn (M2E) arena. According to the blockchain security firm Peck Shield Alert’s tweet Some scammers will even fake attacks to their protocols and then warn investors of potential scammers and hackers, giving themselves an air of legitimacy. Once Rug pull scams occur when developers withdraw liquidity after attracting investments, causing token value to collapse. Common signs include anonymous teams, lack of transparency, and

Are NFT rug pulls targeting Move-to-Earn (M2E) protocols? Unfortunately, the answer is a resounding yes. “Rug pulls” are crypto-scams perpetuated against investors in NFT projects, where creators offer a collection of NFTs for sale but ultimately abscond with investors’ digital assets. This is a growing problem, and the trending move-to-earn (M2E) arena has become a prime target. According to the blockchain security firm Peck Shield Alert’s tweet, the frequency of these scams is alarming.

Understanding NFT Rug Pulls

This study provides an in-depth analysis of NFT rug pulls, the fraudulent schemes that steal investors’ funds. From a curated dataset of 760 rug pulls across 10 NFT platforms, a disturbing trend emerges: these scams are becoming increasingly sophisticated. Scammers create a stealth drop NFT, which promises quick riches by providing exclusive access to rare NFTS. However, in reality, the victims are lured into a rug pull scheme.

M2E Protocols: A New Hunting Ground for Scammers

The allure of quick returns in M2E games makes them attractive targets. Investors, eager to capitalize on the hype, may overlook red flags and fall victim to well-orchestrated rug pulls. Our findings reveal that repeated rug pulls account for a significant proportion of the rise in NFT-related cryptocurrency crimes, with one NFT collection attempting multiple rug pulls.

How Rug Pulls Work

Rug pull scams occur when developers withdraw liquidity after attracting investments, causing token value to collapse. But the tactics can be even more insidious. Some scammers will even fake attacks to their protocols and then warn investors of potential scammers and hackers, giving themselves an air of legitimacy. Once trust is established (or seemingly established), the rug is pulled.

Red Flags to Watch Out For

Protect yourself from becoming a victim of an NFT rug pull by being vigilant and looking for these common signs:

  • Anonymous Teams: Lack of transparency is a major warning sign.
  • Lack of Transparency: Projects that don't provide clear information about their team, roadmap, or tokenomics should be approached with extreme caution.

Investing in NFTs, especially within the M2E space, requires careful due diligence. Don't let the promise of quick riches blind you to the risks involved.

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