Hype plagiarism, insider fraud Common NFT scams and security advice on OpenSea

The NFT craze brought by OpenSea is slowly receding, and the controversy it brings is still there.

Recently, the U.S. Department of Justice brought NFT insider trading charges against a former OpenSea employee . The alleged employee, Nathaniel Chastain, was arrested on the morning of June 1 and charged with wire fraud and money laundering, each of which carries a maximum sentence of 20 years in prison.

In addition to insider trading, various problems such as fraud, plagiarism, and system vulnerabilities appear one after another on OpenSea. Today, we will take stock of the common problems on OpenSea.

Hype plagiarism, insider fraud Common NFT scams and security advice on OpenSea

A large number of unique NFTs come from plagiarism?

The most important reason why NFT can quickly get out of the circle in a number of Web3 tracks is that it has the characteristics of verifiability, uniqueness, indivisible and traceability, which makes NFT applicable to a wide range of scenarios and can solve the problem of reality. There are a lot of issues of ownership in life.

As NFTs become more and more hyped, a large number of incidents of plagiarism and theft of works have been exposed one after another recently. On OpenSea, the world’s largest NFT market, some artists’ works are also mass-produced as NFTs by anonymous users for sale.

Dutch artist Lois van Baarle searched her name on Opensea to find more than 100 pieces of her artwork for sale, none of which were minted by herself; American artist Aja Trier without any NFT operations herself , found nearly 90,000 NFTs based on her IP work on OpenSea.

Hype plagiarism, insider fraud Common NFT scams and security advice on OpenSea

The emergence of this situation has a lot to do with the mechanism of Opensea and other NFT trading platforms. In order to attract more people to enter the NFT market transaction, OpenSea allows users to list NFTs for sale without writing the NFTs to the blockchain. The sellers do not pay fees before the NFTs are sold, and the creation process only takes a few clicks. can be completed.

This has made many speculators want to list as many works as possible, and they have even invented an automated bot that crawls online galleries of artists online, searches with keywords on Google Images, and then automatically generates NFT works.

OpenSea started cracking down on fakes?

So not long ago, OpenSea announced that it would start “fighting”. On the one hand, it was necessary to update the account verification and collection badge system, and expand the number of creators eligible for verification. On the other hand, there will also be a system to reduce “copymints” (duplicates) by identifying and deleting them.

Hype plagiarism, insider fraud Common NFT scams and security advice on OpenSea

As one of the largest NFT trading platforms, countless NFT projects are uploaded and transferred on OpenSea every day. Not long ago, the OpenSea said in a Twitter post that more than 80% of NFTs created for free on the platform were plagiarized or spammed by other artists.

Hype plagiarism, insider fraud Common NFT scams and security advice on OpenSea

Official anti-counterfeiting is not enough, please accept this OpenSea anti-fraud guide

There are a lot of fake scam projects on OpenSea that look exactly like the official ones. When you’re trying to find a specific item, it’s easy to land on a fake item page and buy that fake item, which won’t be of any value.

For example, a group friend wanted to buy an NFT recommended by a friend before. According to the picture, he went to OpenSea to search, and clicked the keyword [Crypto Chases Robot] directly, and then placed an order. Later, he found that he had bought a lonely one, and he had bought a copycat NFT.

Hype plagiarism, insider fraud Common NFT scams and security advice on OpenSea

Fraud and plagiarism, system loopholes, in addition to official anti-counterfeiting, please accept these OpenSea NFT anti-fraud guides quickly.

Check the name of the project

This is the easiest step: check the name. Most projects have the exact same account name on OpenSea. If you look for projects on OpenSea and see some names with sharps, periods, singulars, etc., these are fake.

Find a Verified Badge Logo

Because most official projects have a verified badge, while scam projects don’t. However, in some cases, scam projects will try to make it look like a verified badge by means of P-images, etc. , so make sure the badge is outside the icon image, not inside the image.

Check the number and volume of items

Scammers don’t have the time or money to create NFTs that are orders of magnitude larger, so be wary of smaller NFT projects.

low volume

Since fake projects are imitations, their transaction volume and transaction amount are usually much lower than real popular projects.

low reserve price

The information on each item page (item, transaction volume, and reserve price) can be queried through Rarity.tools, so you can go to each item page to see if the transaction volume and reserve price are the same as what you see on OpenSea.

Check properties

Properties are also another way to identify if an item is false. If you go to the details page of one of the projects and look at the “Properties” tab, the official project has properties that describe various characteristics of each NFT. If you look at the details of a fake NFT and often can’t find the “Properties” tag, be careful too.

Check address

Another surefire way is to check the address of an OpenSea project. If you go to the “Details” tab of the same page of OpenSea, you can find the address of the relevant NFT. Compare this contract address with the address on the official website to see if they are the same.

Hype plagiarism, insider fraud Common NFT scams and security advice on OpenSea

Irregular management, unsafe transactions, and investment attributes in a gray area. In this hype wave of “everything can be NFT”, various scams need to be guarded more.

References:

Far more than hyping plagiarism and cheating, behind the great ebb of NFT, its “N original sins” appeared

 80% are counterfeit, and the encryption market OpenSea wants to “fake” NFT

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/hype-plagiarism-insider-fraud-common-nft-scams-and-security-advice-on-opensea/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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