Why A-List Celebrities Are Still Promoting Unvetted NFT
Jessie A Ellis Feb 06, 2023 12:07
Danis tweeted a picture and website URL that “literally spells out S.C.A.M.”
While the backing from a large number of A-list celebrities helped to speed up the boom in the use of non-fungible tokens (NFT) in 2021 and 2022, some of those celebrities pushed unvetted projects to their supporters without understanding whether or not the projects were authentic. Even after the markets have recovered in 2023, the practise continues to enjoy widespread adoption.
In addition, the MMA fighter failed to take into account the vital fact that the frequently asked questions section of the website explains that there is no way for investors to get "Sourz" NFTs.
When Kim Kardashian pushed the EthereumMax (EMAX) crypto token to her 330 million Instagram followers in June 2021, the United States Securities and Exchange Commission (SEC) uncovered a situation that was identical to the one that had occurred in June 2021 with Kanye West. The Securities and Exchange Commission believes that by omitting to report the sum of $250,000 that she had received for the promotion, Kardashian violated the anti-touting section of the Securities Act.
Coffeezilla, on the other hand, took measures to guarantee that the people who fell for the fake NFT project were informed as soon as possible. Users are taken to a website that issues a warning about the possibility of being taken advantage of when they click the "Mint Sourz" button (as seen in the screenshot located above).
Although Coffeezilla intends to provide further details in a subsequent video, the event serves as a powerful caution to influencers and investors that they should do their own investigation before to promoting or investing in a project.
According to the fictitious creator Atto, the project Little Shapes NFT, which was established in November 2021, was a "social experiment" with the goal of shedding light on large-scale NFT bot network frauds that were taking place on Twitter.
When asked about the motivation for the creation of the NFT project, Atto replied that he required a tale that sells to ensure that no one would disregard a story that hurts. He said this when expressing his objective behind starting the project.
The planned avatar-style project known as Little Shapes, which would include 4,444 NFTs and enable owners to interact with and modify the artwork in real time, was advertised under this name.
Image source: Shutterstock