Reasons Why The Crypto Dream Is Turning Into A Nightmare

Rug Pulls

Fraud rises its nasty head in every form of investment. The NFT world should probably have seen rug pulls coming because it was obvious. In short, Developers advertise NFTs to attract potential investors. Then they steal the projects’ money before vanishing forever into the void (via NFT Now).

This practice is on the rise because many criminals want to exploit the crypto dream. However, governments are clamping down on the activity. In 2022, the U.S. Department of Justice charged two people after a $1.1 million NFT bust. But would-be investors should beware because it’s not easy to catch perpetrators.