The digital world is transforming in ways we never imagined, and Non-Fungible Tokens (NFTs) are leading the way. Thanks to blockchain technology and NFTs, social media platforms are beginning to experience a new level of engagement. From customizable avatars to augmented reality items, NFTs are giving big tech companies new ideas. This article will explore the potential benefits of using NFTs for social media platforms and the sector’s best practices. In this context, Instagram's experiment with NFTs represents a peculiar…
Sleep Minting – A Guide to a Potential Threat for the NFT Market
Sleep minting happens when a scammer mints an NFT to a renowned creator’s wallet with authorization to retrieve it. This gives the impression that creators legitimately minted an NFT to themself before sending it to a criminal.
This guide will teach you how to protect yourself from sleep-minting scams. Moreover, we will mention what steps you can take to prevent the phenomenon from happening.
What is Sleep Minting?
Scammers utilize “sleep minting” to mint an NFT and deposit it immediately into a well-known creator’s wallet. By doing this, it seems like a creator created an NFT but passed it to a scammer.
Why is Sleep Minting a Threat to the NFT Market?
Sleep Minting is a threat to the NFT market because it undermines trust in the authenticity of NFTs. People must trust that the creator legitimately minted an NFT to be more likely to invest in NFTs. This could hurt the overall NFT market.
How can You Protect Yourself from a Sleep Minting Scam?
To protect yourself from sleep minting, check the origin of an NFT before accepting it. If you need to become more familiar with the minting address, be sure to do some research before accepting the NFT.
Additionally, if you ever receive an NFT from an unknown source, delete it immediately.
Contact the NFT’s original creators if you suspect you may have been a victim of sleep minting. They may be able to help you get your NFT back.
Moreover, you can report the scammer to the appropriate authorities so that they can be dealt with accordingly.
Some Steps to Prevent Sleep Minting from Happening
Sleep minting is a scam that a scammer can pull off with permission from a famous creator. The scammer mints an NFT directly to the creator’s wallet and then sends it to the scammer. This creates the appearance that the creator authentically minted the NFT and then sent it to the scammer.
Some steps can help you prevent sleep minting from happening:
- Creators may want to avoid permitting minting an NFT into their wallets to a suspicious party.
- Creators should monitor their wallets for any suspicious activity.
- If someone sends an NFT to an address not associated with the creators, they should immediately withdraw the funds.
Sleep minting is a potential threat to the NFT market; creators should be aware of it. By taking some simple steps, they can help prevent it from happening.
The Biggest Targets for Sleep Minting Scams
The biggest targets for sleep-minting scams are high-profile creators with a large social media following. These creators are more likely to get requests from people wanting to mint NFTs. Consequently, scammers will be more likely to succeed in duping them.
Additionally, these creators are more likely to be less vigilant about checking the origin of an NFT before accepting it. This aspect makes them an easy target for sleep-minting scams.
Understanding NFT Sleep Minting through an Example
To understand how this scam works, let’s use an example. Suppose Alice is a famous creator with a large social media following. Bob is a scammer who wants to exploit Alice’s popularity by minting an NFT directly into her wallet.
To do this, he needs Alice’s permission. So Bob reaches out to Alice and asks if he can mint an NFT directly to her wallet. Alice agrees, and Bob goes ahead and mints the NFT.
Now suppose that Alice sends the NFT to one of her followers, Carol. Carol then tries to sell the NFT on an online marketplace. However, when she claims the funds from the sale, she discovers that Bob has withdrawn the funds. This is because Bob was able to reclaim the NFT from Alice’s wallet, essentially stealing the funds from Carol.
This scam can be very damaging to the NFT market as a whole. It creates distrust among users and makes it harder for people to transact in NFTs. As such, users need to be aware of this scam and take steps to protect themselves from it.
Spotting a Sleepminted NFT
It is possible to spot a case of NFT Sleep Minting. The first step is always verifying that the NFT you buy is legitimate. Next, check the blockchain for evidence of past transactions, and ensure that the seller is reputable. You can also use Etherscan’s token viewer to see if someone sleep-minted a token you want to buy.
You can do a few things if you suspect an NFT is associated with this phenomenon. One option is to contact the original owner and get them to take back control of the token. If that’s not possible, you can sell the token in exchange at a discounted price.
However, note that there is no guarantee that you will be able to find a buyer. Even in this case, you may take a loss on the sale. Sleep minting severely threatens the NFT market, and buyers should protect themselves.
By being aware of the danger and using caution when buying tokens, you can ensure your investment is safe.
As the NFT market grows, it’s essential to be aware of the potential threats. Unfortunately, sleep minting is one such threat. However, by taking some simple steps, creators can help prevent it from happening.