5 ways to spot a scam blockchain gaming project
Over the last couple of years, blockchain gaming technology have been actively developing and attracting new players.
The expansion of the internet and other digital platforms has made it possible for many sectors to thrive, and the blockchain gaming industry is not an exception to this rule. As the sector of blockchain-based online gaming has grown, so have the prospects for fraudsters. These scammers are aware that gamers are susceptible, so they employ social engineering to take advantage of them and steal their money by creating false applications and websites.
Watch out the following five important things to be sure you aren’t getting taken advantage of in a blockchain game:
1. Rug-pull and pump-and-dump schemes
These are the most common scams that have grown together with the increasing trend for blockchain games. In both rug-pull and pump-and-dump schemes, the scamsters endorse a new NFT project to draw attention and lure investors to participate in the project. As people buy the currency or NFTs of the project, the price increases. The scamsters abruptly cash out and often completely pull out the currency from circulation, leaving holders of the NFT or currency with valueless assets.
2. The Project Team
It is essential to have a solid understanding of the people behind the game project as well as the length of time those people have been active participants in the Blockchain community. You may figure this out by examining the length of time that the accounts of the creators or developers have been operational. It’s possible that a well-known creativity will be more dependable than one in which unknown people are involved.
It is possible that a red flag has been raised if the information on the project teams cannot be validated. Even the most anonymous blockchain engineers still leave a paper trail behind in the community, despite the fact that the blockchain architecture itself promotes anonymity. On the other hand, the fact that the identities of the project’s creators are unknown does not necessarily indicate that the task is fraudulent.
3. Social Media Engagement
Twitter and Discord are two of the most important sites for the development of blockchain communities. You are welcome to watch projects on these official social networks in order to see how users engage with them via the use of comments and conversations. However, it should be noted that this is by no means an ironclad rule for determining whether or not a game project is genuine.
To provide the impression that their social media profiles have a bigger audience, some users may pay for fake followers and interactions. Because of this, you need to be suspicious of an account that was only recently made yet already has a large number of followers. Nevertheless, there are initiatives that rapidly become interesting to a huge number of people and so obtain a significant number of followers in a relatively short amount of time.
4. Utilize a Blockchain Analysis Platform or Explorer
One method for determining is there is some scam in blockchain gaming is to use a blockchain explorer to check the blockchain information. An NFT’s information may be obtained via the use of a blockchain explorer. For instance, you are able to observe the mining activity on blocks, the fees associated with transactions, the ownership history, the number of times tokens have been used, and the total amount of tokens that have been issued. In addition to this, confirming the legitimacy of the in-game NFTs will assist you in distinguishing genuine items from those that have been tampered with.
5. Look up their whitepapers
It is very important to invest in blockchain gaming after doing the due thoroughness on a gaming project, look up their whitepapers, who follow know your customer and anti-money laundering guidelines, the background of the founders and the quality and reputation of the exchange their customer support infrastructure before investing. Due to increase in related scams, it is important, therefore, for investors to save themselves from fraudulent crypto exchanges and tokens.
You shouldn’t skip any steps while verifying the authenticity of a game project since you shouldn’t leave any stone unturned. Investigate the project, the people behind it, and the aim, using all of the approaches, and so on. Take your time. As more blockchain gaming projects is launched, unfortunately, scammers also develop new ways to defraud gamers and investors. With this in mind, you must remain on guard and verify the transparency of all NFT gaming projects you intend to invest in.
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