5 Celebrity-Backed NFT Projects That Turned into Scams
There is also a growing number of NFT scams exploiting influencer and celebrity marketing. With the right approvals, even the most mundane projects can generate a lot of hype in the short term. The problem is when the endorsements and hype wear off, investors are often left with worthless NFTs.
Let’s take a look at 5 celebrity-backed projects that turned into scandals:
Bored rabbit pulls the rug
Possibly the largest NFT rag-pool to date, the project launched in December 2021 with 4,999 Bored Bunny NFTs, which were “ready to take over the Metaverse and NFT space” for sale at 0.4 ETH each.
Bored Bunny has raised over $20 million and due to influencer and celebrity marketing, Bored Bunny NFT has gained considerable popularity and its community has grown rapidly.
Celebrities including Jack Paul, DJ Khaled, David Dobric, Floyd Mayweather and French Montana all helped promote and promote the project. The project was pulled just days after the launch.
Trollage Collection
Launched on October 28, 2021, the “Trollz Collection” included 9,669 6ix9ine-inspired avatars, after a Discord moderator on the project allegedly went rogue and launched a bot attack against the community, promoting false minting links that cheated users out of their money. , was discontinued.
The team decided to stop allowing new mints after the hack and limited the project to 4,797 NFTs. Additionally, Tekashi 6ix9ine removed his social media posts promoting the project and removed the NFT avatar from his SM profile.
A tribe of rich dwarfs
This NFT project was released in December 2021, with a first release in January 2022. Musicians such as BowWow, NeYo, Fred Durst and Jason Derulo have been vocal in their support of Rich Dwarf’s Tribe project prior to its release.
Users were promised an incubator for cryptocurrency projects, a “tavern” in the Metaverse, as well as freebies and advertising features like incentives and NFTs to “My Coins for You.” Yet, not long after the initial release of the project, its creators disappeared along with the funding.
Sweepfox
Claiming he overextended himself by launching the scheme in January, in the thick of the NBA season, NBA player De’Aaron Fox is accused of stealing more than $1.5 million through his Swipathefox NFT scheme.
In addition to promising to launch 6000 unique NFTs as a project, he is said to have promised exclusive bonuses such as gifts and private chats with himself.
A collection of eternal creatures
Rapper Lil Uzi is another star who has gained notoriety for his involvement in NFT fraud. After creating a lot of buzz about it among her nearly 8 million Twitter followers, the Eternal Beings collection was launched in late September last year and took off in no time.
It wasn’t long before Uzi deleted all Eternal Creature-related entries from the website and gave up on the project altogether. As a direct result of this, NFT prices have dropped from an average mint price of 2.5 SOL to around 0.13 SOL, equivalent to around $0.035 at the time of this writing.
Conclusion
Over the past two years, the NFT sector has grown rapidly, with leading markets generating billions of dollars in revenue. This amount of success has inevitably attracted scams willing to use anger to take advantage of unsuspecting investors. Beyond just following the advice of popular celebrities who know nothing about NFTs, investors need to do their homework and educate themselves adequately about the industry.
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