The NFT market has seen a rapid rise in the popularity of CryptoPunks. Thus, its average price rose to 53% in just one week. The price of CryptoPunk rose from USD 87,000 (34 ETH) on July 24 to USD 135,000 (52 ETH) yesterday. Because of such a rise in the interest and enthusiasm of people in NFTs, the scammers became hungry. According to reports, the founder of an NFT video game, Stazie, has already faced a bot scam on the CryptoPunks Discord group.
Stazie, NFT Game Developer Scammed
As reported, on the 1st of August, Stazie, the Hedgie creator and developer got scammed as the scammers stole 16 CryptoPunk NFTs. They also stole some ETH (CRYPTO: ETH). Considering the entire lot of assets that they stole, their value stands in the millions of dollars. The day before yesterday, the game developer revealed this fraud in a few tweets, describing how routine his business was before the robbery. Then suddenly a drastic change took place. He wrote, ‘The whole thing happened like a horrific dream’. This shows that he was not able to believe the fact that he was scammed. While narrating his experience, he said:
“I was lying in bed yesterday evening, mind was very foggy, casually browsing. Saw this bot in Discord and clicked the link. The site looked like Cryptopunks, and had a popup that looked like Metamask…”
Recently, the project was celebrating its 4th anniversary. At the same time, a scammer named “cryptopunksbot” posted an offer on the CryptoPunk Discord service. There he announced a chance to win ten unique NFT avatars. After some time, Stazie received a fraudulent message that his Metamask wallet’s security was hacked. Stazie then went to a fake website. There he entered his twelve-word seed phrase hoping that he will win the unique avatars. Few seconds after he entered the phrase, the scammer took Stazie’s wallet.
The scammer’s wallet is now accessible on Larva labs. The wallet now includes 10 CryptoPunks. The scammers sold 5 CryptoPunks NFTs for around 149 ETH ($385,000). Moreover, they transferred one CryptoPunk to some other wallet yesterday night. Stazie still uses that as his Twitter profile picture. Stazie is familiar with cryptocurrency since 2017. He is familiar with the techniques that scammers use to deceive investors about their funds and NFT. He said that his loss of judgment at this stage is due to “exhaustion, fatigue and depression” that he is currently suffering from.
NFT Thieves Becoming Market Leaders
The NFT market hit a new high last week because of a record shift in the market. These digital artifacts changed a lot during the weekend last week. OpenSea which falls under the category of one of the biggest markets saw the trading volumes as high as $35 million on Saturday and then $49 million on Sunday. Like cryptocurrency, NFT contains holder information to facilitate the identification and transfer of tokens between holders.
All digital assets can be tracked easily anywhere around the world. Now in the metadata, all the holders can even add a digital signature to their digital artwork. However, like other analog media, there are many cases of copying and theft, but since NFT is designed to be written to the blockchain, they cannot be simply deleted from the record, so it is easy to verify even after the purchase is done on a stolen NFT. The public ledger provided by the blockchain continues to protect artists from easily deleting their work after confirming the theft.