Celebrities’ support for nonfungible tokens (NFTs) accelerated the boom in 2021 and 2022, but some promoted unvetted projects to fans without knowing if they were legitimate or scams.
As part of the promotion, Danis tweeted out a digital image that contained a website URL, which, according to Coffeezilla, “literally spells out S.C.A.M.” The website was just created on Feb. 1, 2023, When examining the credibility of new projects, this is an important factor to look for.
The FAQ on the website also mentions that investors cannot acquire “Sourz” NFTs, a crucial detail overlooked by the MMA fighter.
When Kim Kardashian promoted EthereumMax (EMAX) crypto tokens to her 330 million Instagram followers in June 2021, the United States Securities and Exchange Commission (SEC) flagged a similar incident. By failing to disclose the $250,000 she had received for the promotion, Kardashian violated the Securities Act’s anti-touting provision, according to the SEC.
Coffeezilla, however, ensured that the users who fell for the scam NFT project were immediately notified. When users click the “Mint Sourz” button, they are directed to a website warning against a scam.
The incident should serve as a reminder for influencers and investors to do their own research before promoting or investing in a project. Coffeezilla plans to share more information through a follow-up video.
According to pseudonymous founder Atto, Little Shapes NFT was a “social experiment” intended to shed light on large-scale NFT bot network scams on Twitter.
To launch the NFT project, Atto explained, he needed a story that sells to ensure no one would ignore a story that hurts.
It was marketed as an avatar-style project with 4,444 NFTs that owners could interact with and change in real time.