New NFT scam: The "NFT PI Xiu Pan" that can be on OpenSea list
Writing: 0xLaughing, rhythm BlockBeats
OpenSea's monthly and daily trading volume (Ethereum) (source:Dune @rchen8)
The whole crypto market plunged and the NFT market also went into a cold winter overnight after Luna storm triggered a chain reaction. According to thereportsAccording to Dune Analytics on August 1, OpenSea's transaction volume in July was only $528 million, down 89.12% from its all-time high of $4.857 billion in January 2022, reaching a one-year low.
In the current bear market, NFT investors have to live with the massive loss of their assets caused by previous declines, and they are also vulnerable to the proliferation of scams.
However,NFT market depression and trading volume continues to decline, criminals through brush volume to "hit the list", at a very low cost quickly on the NFT trading platform trading list, which makes OpenSea and other NFT trading platform is becoming a breeding ground for new NFT fraud projects.
Detailed explanation of fraud process
This section takes a look at the fraud process of Geometric Birds, one of the most popular new NFT scams, and breaks down how it is luring NFT investors step by step.
The illusion
Geometric birds inUniq.cxThe last 24 hours trading volume ranked 6th
If you go to OpenSea's home page on a Tuesday, it's easy to notice that there's a name on its 24-hour trading leaderboardGeometric birds"Was at the top of the list (now taken down by OpenSea).
An introduction to the project on OpenSea
When you click on the homepage of this project and browse carefully, you will find that it is actually an NFT imitation disk project with Moonbirds as the prototype for secondary creation. The total amount is 1.5K and there are 576 holders in total, with 2.6 holders per capita. This proportion is high but still normal. The total transaction volume reached 323E in 24 hours, and the floor price reached 1.3E at the highest level, but remained around 1E later.
After only one day of being online, you can keep the floor price at 1E's high price, and you start wondering if this is the next blue chip project, so you start to search Twitter for more information about it, but you are eating the first "poisonous bread crumb" dropped by the person behind it, and the scam is just beginning.
Geometric Birds' official push presents information
According to the Geometric birds Officer pushedDescription: The NFT project was initiated by the studio of John Wilson Clinton, a famous contemporary Hungarian geometric abstract painter who uses geometric elements to create a series of unique works of art, One of his paintings, "The Hungarian Princess," sold for 4 million euros at Christie's autumn sale. In addition, there will be a special exhibition of his art at the Hungarian National Gallery B on August 12.
After browsing through its official Twitter and OpenSea, you'll probably have a picture of what the project looks like: It is created by a famous Hungarian artist, who even has a special art exhibition in a national art museum. At the same time, its NFT market price is remarkable. The total amount of 1.5 K proves its scarcity, and the floor price of 1E represents the market's recognition of its value.
Geometric Birds price point plot over the course of a day
You decide that this is a "potential stock" that has yet to be tapped by the Alpha groups, and you may either be bullish on the subsequent uptrend and chase it higher, or complacent that you "caught the bottom" on the downside. In short, once you buy, you are completely in the trap of the "NFT PI Xiu pan".
Some people have tweeted that they can't sell Geometric Birds after buying them
Later, when you try to place an order, it is not bought, and someone even tweets that the NFT it placed an order on has been moved. It suddenly dawns on you that the floor price remains at 1E because NFTS with orders below 1E have been moved.
Geometric Birds' OpenSea page now displays 404
Geometric Birds has finally been taken down from OpenSea after nearly 24 hours, with no new updates on its official Twitter feed.
Fact: "Beating the Charts" by trading volume
Geometric Birds is actually being scammed by bribing deals to reach the OpenSea trade list.
What is Wash trading?
According to InvestopediadefineTraditionally, cleansing is the process by which traders buy and sell securities, providing misleading information to the market in order to make a profit.
NFT brushing is designed to make an NFT seem more valuable than it really is. This can be done by repeatedly reselling the same NFT in two or more wallets at a high price, eventually increasing the floor price and transaction volume of the entire NFT project, creating a "false prosperity". And due to the anonymity of Ethereum addresses, multiple wallet accounts involved in brushing are often affiliated with the same entity.
Geometric Birds' brush volume trade
A transaction graph of address-related Geometric Birds (the addresses shown are not complete)
By deploying smart contracts from Geometric BirdsThe wallet address(hereinafter referred to as address D) Tracing back to the source, it is obvious that these addresses are closely related to each other.
The parent address of address D is like an intermediate node. During this period, transfers from multiple wallets have been collected and distributed to multiple other addresses. There is also a transfer source from Tornado coin mixer.
Geometric Birds highest trading unit price 28E (photo credit: NFTGo)
Geometric Birds NFTS are being traded back and forth between these locations, allowing the NFT series to exceed 300E in less than 24 hours, with a maximum unit price of 28E, and several large transactions at extremely high prices.
In the end, using Geometric Birds' total transaction volume of about 320E on OpenSea and 2.5% of the transaction formalities, the cost of this scam would be about 8E (excluding Gas Fee). That means that only eight victims, the number of whom is still unknown, have to buy their NFTS at 1E floor price to recoup their costs.
In other words,Geometric Birds, the "NFT brave", has been placed on the billboard of OpenSea, the largest NFT marketplace, with only 8E fees.
How can ability not be brushed amount of "NFT PI xiu pan" cheat?
1. Do your research
Geometric Birds, for example, actually features fictional artist John Wilson Clinton on its official Twitter account. A search reveals that there is no information about the "famous artist" on the Internet, nor about his art show.
2. Check to see if the wallets with the big transactions are real
Geometric Birds, for example, is raising red flags with its wallet, which was launched last month and has a thin record of transactions, spending heavily on a new project.
3. Check the contract code
In the case of Geometric Birds, a victim posted that after placing an NFT in order, the NFT was then transferred to another wallet. In effect, Geometric Birds has set up Batch Burn in the contract code, which authorizes the transfer of NFTS so that the floor price of NFTS is not held down by other holders. So take the time to check the NFT's contract code ahead of time before trading.
Controversy: How decentralized NFT trading platforms are
On the one hand, OpenSea has been criticized for "blocking access to some countries" and "blocking stolen NFT transactions". Many people think that OpenSea is too centralized and goes against the decentralized spirit of Web3.
On the other hand, for the events such as the "NFT PI Xiu", people hope that OpenSea can take more practical actions to remove these NFTS in time to prevent more people from being cheated.
Geometric Birds have also been "promoted" by several Twitter KOL accounts
In this incident, we carry out from the moral condemnation of the fraud, behind education gullible victims is not careful, and wait for OpenSea trading platform and KOL, to be sure they are in accordance with the volume to truthfully report and rankings are correct, but for the project screening potential fraud is also should be their responsibility?
conclusion
In fact, the well-known blue chip has the situation of brush volume trading (photo source:Dune @21shares)
In fact, according toDune dataData shows that the phenomenon of brush volume trading is prevalent in NFT projects, and many well-known blue chips such as CryptoPunks, BAYC and so on are the hardest hit areas of brush volume trading.
The CEO of bitsCrunch, a data analytics company, acceptedinterview"Also admitted:More than 33% of NFT volume is brush trading.
Thus, brush volume trading has become a non-negligible issue in the NFT market. Since NFT investors have to rely on measurable statistics such as floor prices and trading volumes, it is difficult for them to make informed investment decisions when they are misled by data from an NFT series that has experienced one or more brush volume, and they may even make completely wrong decisions due to "maliciously misleading".
Lady Ape Club's trading map
And recently the NFT market transaction volume continues to be low, which makes the "NFT PI Xiu Pan" people brush volume "hit the list" cost is low, so there are many similar fraud events. For example, Lady Ape Club, which once entered the top five on OpenSea's daily trading list, is also a well-known KOLZashXBT questionIs the amount of brush "NFT PI xiu pan".
So, "NFT PI Xiu pan" boarded the billboard, OpenSea is an accomplice?
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