- Crypto investigators exposed Dillon Danis for promoting the NFT project for which he received $1,000.
- Many celebrities promote NFT projects without learning about their authenticity.
- Danis endorsed the product by tweeting a digital photo with a link that basically spells out S.C.A.M, says Coffezilla.
Coffeezilla, a crypto researcher and YouTuber, disclosed that American mixed martial artist Dillon Danis endorsed a bogus NFT project without revealing that he did receive $1,000 for the promotion.
We just tricked Dillon Danis into promoting a fake NFT project. We paid him $1,000 to post, he didn't disclose it was an #AD, and posted copy that literally spells out S.C.A.M. 💀💀 pic.twitter.com/SVo2SCoN9q— Coffeezilla (@coffeebreak_YT) February 3, 2023
While countless A-list public figures helped to accelerate the non fungible token (NFT) rise of 2021 and 2022, some elevated unverified projects to audiences without understanding whether they were genuine or frauds. As markets recover, the practice will continue to be popular in 2023.
Danis promoted the product by tweeting a digital photo with a website link that, according to Coffeezilla, basically spells out S.C.A.M. Some further inquiry reveals that the webpage was generated on February 1, 2023, an essential piece of evidence to look for when determining the authenticity of new projects.
Furthermore, the official site FAQ states that no shareholders can obtain the “Sourz” NFTs, which the MMA boxer failed to mention.
The United States Securities and Exchange Commission (SEC) reported an identical event involving Kim Kardashian in June 2021, when she endorsed the EthereumMax (EMAX) crypto token to her 330 million Instagram followers. According to the SEC, Kardashian did violate the Securities Act’s anti-touting provision by not disclosing the $250,000 she earned for the publicity.
Coffeezilla made certain that customers who did fall for the fraud NFT project were instantly made aware. Clients are transferred to a webpage that warns them about potential fraud when they press the “Mint Sourz” tab.
While Coffeezilla intends to provide more details, the event serves as an important reminder for endorsers and stockholders to conduct their own studies before publicising or investing in a venture. According to anonymous founder Atto, Little Shapes NFT, a project launched in November 2021, was a “social experiment” crafted to shed some light on huge NFT bot web frauds on Twitter.
Little Shapes was advertised as a forthcoming original character venture with 4,444 NFTs that would allow shareholders to socialise with and modify the work of art in real time.