Coffeezilla, a YouTuber and crypto investigator, revealed that American blended martial artist Dillon Danis promoted a faux NFT challenge with out disclosing that he acquired $1,000 for the commercial.
We simply tricked Dillon Danis into selling a faux NFT challenge. We paid him $1,000 to submit, he did not disclose it was an #AD, and posted copy that actually spells out S.C.A.M. pic.twitter.com/SVo2SCoN9q
— Coffeezilla (@coffeebreak_YT) February 3, 2023
Within the promotion, Danis tweeted out a digital picture together with a web site URL, which in keeping with Coffeezilla, “actually spells out S.C.A.M.” An additional investigation from Cointelegraph exhibits that the web site URL was newly created on Feb. 1, 2023, an necessary clue to verify when checking the credibility of latest initiatives.
Furthermore, the web site FAQ clearly mentions that no buyers can pay money for the “Sourz” NFTs, a vital piece of data ignored by the MMA fighter.
SourzNFT FAQ highlighting that no customers can get the NFTs. Supply: sourznft.com (CoffeeZilla)
The same incident involving Kim Kardashian was flagged in June 2021 by the Securities and Change Fee (SEC) as she promoted EthereumMax (EMAX) crypto token to her 330 million Instagram followers. In response to the SEC, Kardashian violated the anti-touting provision of the Securities Act by failing to reveal the $250,000 she had acquired for the promotion.
Nevertheless, Coffeezilla ensured that the customers who fell for the rip-off NFT challenge have been notified instantly. When customers click on the “Mint Sourz” button (as proven within the above screenshot), they’re redirected to a web site that cautions towards a potential rip-off.
A webpage showcasing crypto initiatives beforehand promoted by MMA fighter Dillon Danis. Supply: sourznft.com (CoffeeZilla)
Whereas Coffeezilla plans to share extra data on this by a follow-up video, the incident comes as a powerful reminder for influencers and buyers to conduct thorough analysis (DYOR) earlier than selling or investing in a challenge.
Associated: FBI seizes $100K in NFTs from scammer following ZachXBT investigation
Japanese authorities have began exploring blockchain use circumstances to unravel quite a few technological points. Fumio Kishida, the prime minister of Japan, just lately spoke concerning the “varied potentialities for utilizing Web3” within the nation.
Prime Minister Fumio Kishida addressing the Funds Committee on Feb. 1. Supply: YouTube
“If you happen to contemplate DAOs, people who find themselves all for the identical social points can kind a brand new group,” stated Kishida. “NFTs will also be used to diversify the revenue of creators and preserve extremely loyal followers.”
Whereas the help from quite a few A-list celebrities expedited the nonfungible token (NFT) growth of 2021 and 2022, a handful ended up selling unvetted initiatives to followers purely for private financial advantages. Nevertheless, the misconduct retains its recognition in 2023 as markets embark on a restoration.