The NFT market is saturated.
There are so many new projects coming out every single day, and they all look the same.
As the saturation levels continue to skyrocket, so do the scam projects, and the quick cash grabs rock the NFT mania.
Here are 6 major red flags to look out for to avoid risking a head-on crash with an NFT robber.
Their Smart Contract Isn’t verified on Etherscan
Before investing in an NFT project, it is important to ensure that the contract is verified through Etherscan, a comprehensive search engine, and analytics platform.
Ideally, if a project is legitimate, the contract will have a verified check mark next to it.
If there isn’t a checkmark in that spot, beware! It might be a red flag!
Fake Followers
Buying social media followers isn’t a new phenomenon and scammy NFT projects are no different. In fact, it is a dangerous red flag.
So how do we know if their social media followers are even real?
One way to check this is by using FollowerAudit.com, an Al technology-based analytics tool that detects fake and spam followers.
This will help you know how many of their followers are real and how many are fake.
Overhyped Roadmap
Before investing in an NFT project, vet the team properly to see if they’re able to make good on those over-ambitious and unrealistic roadmaps.
Execution is everything, and if it looks like they’re biting off more than they can chew, stay away from such projects.
Weak Roadmap
On the flip side, if the project’s roadmap looks underpromising and underwhelming, investors have little to look forward to. The project’s roadmap is the star of the show, it adds uniqueness to the project and gets people actually interested in the NFT collection.
A generic roadmap, with nothing new or exciting to offer, is something you’ll definitely want to watch out for in the course of your NFT activities. It is a potential red flag.
Inactive Community on Discord, Twitter
Discord and Twitter are central to the community, and community is one of the most important aspects of an NFT project.
If the project hardly has any meaningful conversations around it and barely any engagement, it’s a clear indicator of the project being a scammy cash grab.
High Mint Prices
In most cases, if an NFT project has a very high price at launch, it basically kills the project at the very beginning.
NFTs are all about community, and if an NFT project has an expensive price at the mint, a huge chunk of people is already excluded from joining the community.
As mentioned before, the community is central to NFTs and you want to make sure you’re buying into a project that has a strong community in the future.
In the tumultuous world of NFTs, picking the right project can skyrocket you 10 times overnight. However, a scammy rug pull can crash you down to zero in no time.
Pick your NFT projects after doing thorough research, and you’re all set to delve into the wonderful world of NFTs.
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