NFT hackings and have been worryingly commonplace through 2021 and 2022, whether in fake airdrops, phishing links, or Discord server hacks.
On June 5th Yuga Labs confirmed their official Discord channel was hacked and NFTs worth 200 ETH were stolen. The Bored Ape Yacht Club Twitter account (@BoredApeYC) stated the exploit was brief, and the team caught it and addressed it quickly – but over $350,000 worth of NFTs were still hacked.
Last month the largest NFT marketplace, OpenSea, had their Discord channels hacked and a scammer impersonating admins was able to promote a fake project and steal NFTs worth 10 ETH.
Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.
Discord isn’t working for web3 communities. We need a better platform that puts security first.
— GordonGoner.eth (@GordonGoner) June 4, 2022
DappRadar’s latest NFT industry report shows an increase in market share of smaller NFT marketplaces, and higher trading volume among new NFT projects – perhaps a sign buyers and traders are worried they’ll be a target of scams if they invest in more expensive blue chip NFTs.
Yuga Labs – the largest NFT company by far that created BAYC, Mutant Apes, CryptoPunks, Meebits, the Kennel Club and more NFT collections – have in fact been hacked three times in 2022.
The Yuga Labs Discord was hacked April 1st leading to a MAYC NFT being stolen, and on April 25th the Bored Ape Instagram was hacked – impersonators sent phishing links to followers and scammed $3 – $10 million in NFTs.
Even many new NFT projects with a lower floor price have also fallen victim to scams, including an owner of Goblintown NFTs this week.
6 days into June and already 22 #NFT Discords have been exploited‼️ Mostly preventable mistakes made by team members
Scams are increasing and ppl keep losing money. Get your security in order. Security should not be an afterthought
— OKHotshot (@NFTherder) June 6, 2022
@NFTHerder tweeted to his 44k followers that 22 NFT Discords were hacked in the first six days of June, mostly as a result of preventable mistakes by NFT team members and investors treating security as an afterthought.
Some in the NFT community have begun to blame Discord as a company, saying that Discord servers don’t provide strong enough security protocols like crypto exchanges, many of which now have their own NFT marketplaces.
Yuga Labs co-founder ‘Gordon Goner’ on June 5th tweeted that ‘Discord isn’t working for Web3 communities. We need a better platform that puts security first.’
Other have said the responsibility lies with the NFT holder to not approve malicious transactions and lose their private keys to phishing links sent via DM or fake websites that they connect their wallet to.
We wrote some tips on how to stay safe online and protect your NFT investments in our NFT airdrop scam post.
Next NFT to Blow Up – Lucky Block
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This article was written for Business 2 Community by Michael Abetz.
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Michael has been investing in cryptocurrency since the 2017 bull run, and is a freelance writer producing educational material on decentralized finance topics online.… View full profile ›
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