The NFT space is no stranger to dubious projects and out and out chicanery looking to part innocent collectors with their hard-earned funds. As a result, noble Twitter user and concerned citizen, Wilx lee has published an in-depth list of red flags to keep an eye out for.
Topping off the list is the undoxxed team. In this day and age, there is no reason for any project looking to raise millions of dollars not to reveal themselves. As a result, it is wise to steer clear of projects that omit this layer of accountability.
Next up, are the legions of fake followers and huge membership designed to make the project look legit. However, for people of few scruples, faking these numbers makes for an easy task. While companies exist purely to pad out accounts with fraudulent members, Wil recommends a quick look-up on www.twitteraudit.com which will quickly scan any account for suspicious activity.
Third on the list, comes in as artificial hype. It’s easy to fake a partnership or an endorsement, so users should double check these bold claims. Is Gary Vee really endorsing this shady ape knock off account? Probably not.
Next up, we have the unrealistic mint price. Hyper inflated figures make for a clear warning, indicating a potential cash grab that ends with the project leads running away with the funds. Quickly following this, predatory tactics makes an appearance. As a result, keep an eye out for floor sweeps, banning members for questioning credibility and general harassment.
Finally, ending the thread, lies the “meta cliché,” representing itself as shady and vague roadmaps, and a general inability to address legal concerns. A genuine economy will take years to develop, so keep an eye out for launches with a low turnaround, and “copy and paste” roadmaps.
All in all, a solid platform for any prospective collector in the NFT space. Hats off to Wil then, for the sound advice and information that should circulate far and wide throughout the NFT community.