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OpenSea NFT Scam: Company Admits to Fake NFTs in Marketplace; NFT Insurance Becomes a Thing

NFTs undoubtedly dominated the digital financial industry last year and have maintained their power during this time.

Unfortunately, another NFT with the same name as Bored Ape Yacht Club, The Big Daddy Ape Club, was held on January 11th. ForbesIn that case, investors were fooled from about $ 1.13 million.

By its name alone, many were impressed with the purchase of NFT tokens similar to A-listers’ Paris Hilton, Eminem, and Jimmy Fallon.

The money was paid, but in this case no token was created. This scam is a classic bait-and-switch. Moreover, investors were not completely ignorant.

According to the report, the Big Daddy Ape Club team was “verified” by San Francisco-based distributed identity verification startup Civic.

As a result of crypto and NFT fraud, users are now able to take out NFT insurance. The insurance industry has devised a new policy to protect against fake NFTs as a result of fraud.


Has been reported Deputy According to OpenSea, one of the leading non-fungible token exchanges online, free non-fungible token mining tools are widely used to create scams and spam.

The amount of theft and fraud related to the NFT sector is also increasing.

Unfortunately, platform artists are familiar with the feeling of staring at their work in OpenSea’s digital galleries.

Nonetheless, OpenSea has revealed how much fake and theft is the cause on their platform, and that’s a lot.

In the sad reality, the company says that most of all NFTs published for free on its platform are spam or plagiarized.

Read the article: NBA Metaverse: Net creates a “netaverse” for virtual fans to watch basketball games and uses over 100 high-resolution cameras!

New OpenSea policy

Recent policy changes were announced by OpenSea on Thursday, January 27th. It said that the free feature will allow users to “create” or establish up to 5 collections with 50 NFT each.

according to Gizmodo, OpenSea states that there have been recent misuses of this feature since the “Lazy Minting” tool was originally created in 2020. ..

Unfortunately, more than 80% of the NFTs created by this program were plagiarized works, fraudulent collections, and spam.

Policy changes caused anger, and some projects argued that it was an unexpected hurdle because they had to create an NFT, but they couldn’t.

However, due to anger, OpenSea switched courses, declared that the restrictions would be lifted, and provided background on why the restrictions were imposed in the first place. Free mining tools are almost entirely used for fraud and spam.

As a result, the company has declared that it will limit the number of NFTs customers can create.

Users complained that they couldn’t complete the collection or submit new work as a result of the decision, and urged OpenSea to lift the restrictions and apologize to users on the same day.

Policy changes

Among all the challenges the company faces, OpenSea said in a Twitter thread that it will make all decisions with the artist in mind.

They initially created a shared storefront contract to make it easier for creators to join the space.

However, I recently noticed a sharp increase in the misuse of this feature. Over 80% of the items created with this tool have been plagiarized.

Related article: Defi Kingdoms Free NFT Games: How to Earn, Better Than Axie Infinity?


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