Are rug pulls a sign of NFT scams?

Several notable rug pulls in recent years have served as evergreen reminders of the risks of the NFT world. We’ve compiled a short list of some of the most memorable (and costly) the ecosystem has ever seen. If there’s a bright side to these events, it’s that they’ve informed people on how to identify and avoid NFT scams

What is a rug pull scam?

In the Web3 space, the term for the most common type of scam is “rug pull” — the founders of an NFT project pull the rug out from under its investors by disappearing with whatever funds they’ve amassed at the time. Chainalysis estimates that as much as $280 million was stolen from investors in rug pulls in 2021 alone.

Why did Nguyen & Llacuna abandon NFT?

Nguyen and Llacuna purportedly collected $1.1 million from NFT buyers in January and then abandoned the project — in other words, pulled the rug out from under them. According to the government, the pair wereplotting a second scheme right before they got caught.

Should you buy a CNN NFT if you're a collector?

The news network has sparked outrage among collectors who paid thousands for non-fungible tokens sold by Vault, CNN’s own NFT marketplace, which was set up in 2021 to “offer collectors the opportunity to own a piece of history.” Investors could pay for digital ownership of CNN news reports or artistic interpretations.