Growth in NFTs comes at the cost of exit scams and rug pulls; commentary from NFT marketplace leaders.
In a time when the Federal Reserve and the SEC is investigating Tether to see if there is, in fact, $69 billion tethered to their stablecoin, NFTs have remained an idyllic garden of creativity and expression safely away from the Ponzi schemes and rug pulls that have punctuated the evolution of cryptocurrency as a global phenomenon.
However, a state of innocence rarely lasts forever. The NFT space has a rabid appetite for new projects. They pop up, set up shop with a website, Twitter, and Discord server, and begin hyping with a zeal we haven’t seen since the ICOs of 2017. Also, with a connection to their audience that seems to exceed
The NFT space has created user excitement on a level we haven’t seen in years and makes new opportunities for creators all over the world. But these highly profitable, fast-moving creative ventures are also going to inevitably attract some bad actors.
Evil Apes & Rug Pulls
About a week ago, the anonymous 17-year-old 3D artist behind Iconics ran off with 1,000 Solana worth about $140,000. He had 14 samples of the “quality artwork” 3-D busts he was offering to go along with his planned 8,000 NFTs — it seems the 3-D busts will never be delivered to the 2,000 buyers of the pre-sale of his NFTs. They received a random collection of emojis instead.
However, that scam perpetrated by presumably one person pales in…