YouTuber and cryptocurrency investigator Coffeezilla recently exposed American mixed martial artist Dillon Danis for promoting a fake NFT item without revealing that he received $1,000 from the ad. As NFTs grow in popularity, it’s important for influencers and investors to research projects thoroughly before promoting or investing in them.

Fake NFT projects exposed

In his pitch, Danis tweeted a digital image with the website URL, which, according to Coffeezilla, “literally stands for S.C.A.M.” The investigation revealed that the site was newly created on February 1, 2023, a red flag for checking the credibility of new projects. The site’s FAQ mentions that no investor can get their hands on the “Sourz” NFT, an important piece of information that Danis overlooked.

In June 2021, the U.S. Securities and Exchange Commission (SEC) flagged a similar incident involving Kim Kardashian when she promoted the EthereumMax (EMAX) crypto token to her 330 million Instagram followers. The SEC alleges that Kardashian violated the anti-touting provisions of the Securities Act by failing to disclose the $250,000 she received as a result of her promotion.

Coffeezilla makes sure to notify users who fall for scam NFT projects immediately. When users click the “Mint Sourz” button, they are redirected to a website that warns of a possible scam.

A reminder to influencers and investors

The incident reminds influencers and investors to research projects thoroughly before promoting or investing in them. Projects like Little Shapes NFT launched in November 2021 to reveal a massive NFT bot scam on Twitter. The project, marketed as an upcoming avatar-style project, has 4,444 NFTs, allowing owners to interact and change artwork in real time.

Coffeezilla plans to share more information about the incident in a follow-up video, emphasizing the importance of due diligence in the NFT space. This event strongly reminds influencers and investors to be cautious when promoting or investing in NFT projects, and to thoroughly research and verify their legitimacy.

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Filed under: Bitcoin - @ February 6, 2023 3:19 am