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Author: Onkar Singh, CoinTelegraph; Compiled by: Tao Zhu, Bitchain Vision
1. What is an NFT swap order?
NFT swap orders are transactions in which all parties exchange irreplaceable tokens (NFTs).
NFT is a unique digital asset that can be verified using blockchain technology.Unlike cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH), each NFT has a unique quality.NFTs can represent a wide range of digital content, including virtual real estate, music, movies, artworks, and more.
NFT swaps facilitate the exchange of NFT ownership between individuals or entities.
In this process, one party transfers ownership of one NFT to the other party in exchange for another NFT (a combination of NFT, cryptocurrency, or other assets).These transactions can be conducted directly between parties or through decentralized exchanges (DEXs) and dedicated platforms that support NFT trading.
NFT swap orders are usually conducted on predefined parameters agreed by the parties, including information on the assets traded, the quantity involved, and any additional terms or conditions.As the NFT market develops, swap orders are crucial to enable the transfer of digital assets and collectibles between investors, artists and collectors.
2. NFT swap order scam
NFT swap order scam involves scammers tricking victims into swapping valuable NFTs for worthless counterfeits.
NFT swap orders or custom transactions involve swapping one NFT directly to another (or mixing NFTs and cryptocurrencies).Swap orders offer greater flexibility than regular orders, which require NFTs to be purchased or sold in standard currency.This is often due to the irreversible nature of scams exploiting NFT hype, tricking buyers or abuse blockchain transactions.
These fraudsters often hide behind the identity of reputable buyers or sellers and issue transaction orders, promising to exchange NFTs with potential victims.However, they may replace unique NFTs with fake or insignificant items, or disappear after they acquire valuable NFTs.
Therefore, before agreeing to any transaction, the counterparty must be thoroughly investigated to prevent becoming a victim of NFT swap order fraud.A reputable NFT platform or market with integrated verification mechanisms can help reduce opportunities to conduct business with dishonest people.
Before completing any swap orders, users must use smart contracts and blockchain data to confirm ownership and authenticity of the NFT.In the emerging digital asset market, being vigilant, cautious and trading only with reliable institutions is a key way to avoid NFT swap order scams.
NFT Swap Order Scam vs. NFT Phishing Scam
It is important to understand that NFT swap order scams are different from NFT phishing scams.NFT swap order fraud involves false swap quotes on the market, tricking victims into losing specific NFTs.NFT phishing scams use fake websites or messages to steal wallet login credentials, which can result in the theft of all assets in the infected wallet.
Here is a summary of the differences between the two scams:
3. How to cheat NFT traders through swap orders
By creating fictional NFTs that look similar to valuable NFTs, and then suggesting swaps that hide the true nature of the exchanged assets, fraudulent plans to fool NFT traders by swapping orders.
Swap orders are often used for complex fraud schemes targeting NFT traders.Scammers create fake NFTs to mimic expensive and well-known tokens.They then list these fraudulent NFTs on a reliable market, occasionally using dishonest techniques such as manipulating information to make the list look real.
When a customer expresses interest, the scammer will quickly complete the swap order.They put fake NFTs into the buyer’s wallet instead of sending real NFTs.Due to similarity, customers often don’t realize the differences and mistakenly think that they have obtained a real NFT and keep buying.
This scam may not be discovered until the buyer tries to resell or confirm the legitimacy of the NFT, when they realize they have been cheated.By then, the victim may not be able to seek justice because the scammer may have disappeared or concealed his identity.
NFT traders should carefully investigate the dealer before purchasing and confirm the legitimacy of the tokens to prevent being victims of such scams.Reputable markets with extensive verification procedures and prudent trading practices may help reduce the likelihood of becoming victims of fraudulent swap orders.
4. Identify the red flags of NFT swap order fraud
Many warning signs can be used to detect NFT swap order scams and to ensure traders are protected from scammers.
First, be wary of sellers who promise to sell valuable NFTs at very low prices.Deals that look incredibly good are usually scams.If the supplier is acting hastily or completing a transaction under pressure without giving you time to do your homework, you should act carefully.
If the artwork or details (metadata) of the NFT provided appear to be suspiciously similar to the official collection, please proceed with caution.This may indicate that NFT is a replica.To verify legitimacy, please check the details carefully.Additionally, be careful when dealing with sellers with fewer or suspicious transaction records in the market or sellers who refuse to provide further documentation or confirmation of ownership when requested.
Finally, if the seller insists on completing the transaction outside of a reliable platform or hosting service, there may be serious red flags of fraud.To reduce the risk of NFT swap order fraud, it is always important to prioritize transactions through reliable channels with buyer protection procedures.
5. How to verify and avoid NFT swap orders
Confirmation of NFT swap orders is essential to prevent being victims of fraud.Check the seller’s records and past transactions on the market in advance.
The smart contract address needs to be carefully checked to ensure it corresponds to the official, verified address of the expected NFT collection.Often, these addresses are available on the project website or markets such as OpenSea.
Since scammers may use stolen or deceptive visuals, traders should never rely entirely on images.Use blockchain browsers such as Etherscan to check the details of smart contracts more deeply, which also display the history of NFTs and may help identify any suspicious activity.Choosing a reputable market often adds an additional layer of security due to its review process and fraud prevention measures.
Traders should take precautions beyond fundamentals to prevent NFT swap order fraud.Community discussions on forums or Discord can highlight warning signals that are not always obvious from the exchange of details only.It is wise to confirm the smart contract twice, as the recently generated smart contracts may indicate a fraudulent NFT.People can also prevent being victims of fake NFTs by checking the contract page for typos or other inconsistencies.Therefore, finding fraudulent NFT swap orders requires being alert, not simply accepting the visual representation of NFT.
