We have all heard horror stories of scams and rip-offs within the NFT community but now another ignorant NFT influencer fell headfirst into this crypto honeypot scam. Some people have narrowly avoided these schemes whilst others have succumbed. With new, fast-changing technology, unfortunately, the more likely it is for scammers to influence where NFT buyers put their Ether. Obviously, Ignorance is rife when it comes to fresh technology.
The NFT influencer Honeypot trap
NFTs Anonymous, the founder of CAMP NFT, Tyler, made an ignorant mistake last night. He was doing what he normally does, scouring the internet for the next big thing to invest in. Then, a new project came to his attention.
According to Etherscan, this was of significant interest and many NFT influencers were investing.
What is wrong with Honeypot contracts?
Basically, the Honeypot smart contract doesn’t let you cash out or sell your investment. Therefore, the transaction is effectively stuck. Tyler put an incredible 20ETH into this Honeypot contract, which is just under $90,000.
As bad as sinking your own money in dodgy investments is, it doesn’t end there. Another issue with this whole situation is that Tyler encouraged his friends and followers to invest too. He didn’t offer direct financial advice but certainly hyped up the investment he just plunged his money in.
To be fair to this ignorant NFT influencer, he owned straight up to his mistake and took it on the chin. With a thread of tweets explaining the situation, Tyler explained how he led his followers onto the investment stand. To frame this, he also focused on education regarding web 3.0 and NFT technology in general. Obviously, he apologised and admitted to his own ignorant actions. Despite that, a lot of his friends lost out. However, many of them put the loss down to their own greed.
Obviously, it was a scam and the project ran off with all of his, and most of his friends’ and community’s, Ether. Not a great look. Although it presented itself as a non-threatening opportunity with many trusted people involved, surely someone with his experience should know better. However, it seems no one is too big or clever to fall for an NFT honeypot.
In conclusion, stupid mistakes are going to happen – especially with NFTs. No matter how ignorant, NFT Influencer Tyler took the situation in his stride and dealt with it with education, admittance and pride. Honeypot smart contracts are a huge red flag and you are best to steer clear of anything similar. Above all, anyone investing their Ether in new contracts – especially those that seem a bit too good to be true – should always be vigilant for scams.
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All investment/financial opinions expressed by NFTevening.com are not recommendations.
This article is educational material.
As always, make your own research prior to making any kind of investments.
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