As NFT scams proliferate online, Digital Assets sleuths are fighting back

 Cryptocurrencies, Blockchains, Non-Fungible Tokens, Decentralised Currencies these are all the

buzzwords going around the world. But in reality, they are much more than just internet hype and
could might as well be future of finance.

NFTs are non-fungible tokens which are digital assets representing real world objects like pictures,
art, music, in game items. NFTs are bought and sold online. Each token has its own unique identity
unlike cryptocurrencies which are fungible. In the recent years NFTs have skyrocketed because of
large interest from celebrities.

 

Also Read: SEC Scrutinizes NFT Market over Illegal Crypto Token Offerings

 

According to a report from Chainanalysis, NFTs have increased their investment from 102 million
dollars to 44.2 billion dollars in 2021.

But the Chainanalysis report also found that "as is the case with any technology, NFTs offer the
potential for abuse." The report also revealed that these sellers reportedly made 8.9 million dollars
from the sale of NFT to those buyers who believe that the NFT they are purchasing is still rising in
value.

But online scams have well been there since the introduction of online transaction of money let
alone the digital assets in which the value and volume is far more.

 

Nik Horniacek is the cofounder of Rug Pull Finder, a private intelligence company that investigates
NFT projects. He fell for his first NFT scam back in 2021 December when he was exploring a popular
NFT venture that was launching in February. He clicked on the social media link which was supposed
to lead him to the project site but instead drained all his cryptocurrency. From then to this date his
company has exposed nearly 200 scams worth more than 1.3 billion dollars. Nik is one of the many
NFT ‘investigators’ that track and analyse NFTs as more and more big personalities are getting
impressed by it.

These activities only continued to rise which is why federal agencies are developing their efforts to
fight against crypto crime. The US secret service also launched its crypto currency awareness hub
and announced the first director of national crypto currency enforcement team.

 

Also Read: Can I Convert My Cryptocurrency with Coinbase Exchange

 

The first ever NFT case was brought forward in march by DOJ about the NFT collection called
Frosties. Two defendants were charged with a million-dollar fraud scheme after investors were
promised the benefits of that collection. All the money which was received from the sales of tokens
was transferred away after they allegedly shut down their website. They were also planning to
launch a second set of NFT which would have made around 1.5 billion dollars.

Daniel Brubaker, inspector in charge of US postal inspection service also stated that "The rise and
popularity of various cryptocurrencies have changed the landscape of buying and selling
investments, leading to ample opportunities for new fraud schemes,"

NFTs are great asset they can be really successful but this also makes it ideal for dangerous scams.
There is no entity which regulates the transactions so funds can be easily moved without monitoring.

 

KRAKEN

 

Kraken is a United States based crypto currency exchange. Kraken is a cryptocurrency exchange
which offers various cryptocurrencies for users to trade. The crypto exchange allows users to
purchase and sell crypto currencies using various fiat currencies. kraken also offers you to trade
between cryptocurrencies. kraken is one of the oldest and most trusted crypto exchange in the
world. It has been there since 2011. It offers trading in more than 175 countries and provides more
than 90 cryptocurrencies.

 

HOW TO START

 

Beginners do significantly well with Kraken Exchange. Trading on Kraken crypto exchange is fairly
easy because of the user-friendly interface. Signing up on kraken is also not complicated at all. You
are required to verify yourself and provide legal documents for the same.

Customers need to verify and authenticate themselves, only then they will be able to buy and sell
crypto currency.

 

HOW TO TRADE

 

Kraken is a dynamic Cryptocurrency Exchange platform. It offers two platforms for both the types of
customers, beginner or professional. If you are an experienced cryptocurrency trader then you will
prefer Kraken Pro and if you are a beginner and new to the digital world then kraken is your way to
go. It offers more than 90 crypto currencies and accepts trading in fiat currencies like US dollars,
Japanese yen, Canadian dollars, Euro, British pounds, Swiss franc etc. in over 180+ countries. Some
popular currencies available are

• Bitcoin (BTC)
• Ethereum (ETH)
• Cardano (ADA)
• Dogecoin (DOGE)
• Litecoin (LTC)
• Polkadot (DOT)
• Polygon (MATIC)
• Ripple (XRP)
• Stellar Lumens (XLM)
• Solana (SOL)
• Sushi (SUSHI)
• Uniswap (UNI)`

A kraken trading account or wallet can be made. Kraken offers different modes of transactions like
make bank transactions, wired transactions or Digital Wallets such as pay pal etc. the account
management is also quite simple. You can manage your account through website or app whichever
is preferable for you.