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 then 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. If people can’t trust that the creator legitimately minted an NFT, they may be less likely to invest in NFTs. This could hurt the overall NFT market.

How can You Protect Yourself from a Sleep Minting Scam?

In order to protect yourself from sleep minting, be sure to check the origin of an NFT before accepting it. If you are not 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 giving permission to mint 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, and 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 to her wallet. 

To do this, he needs Alice’s permission. So Bob reaches out to Alice and asks her 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 goes to claim 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 for 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 not impossible to spot a case of NFT Sleep Minting. The first step is always verifying that the NFT you buy is legitimate. 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.

If you suspect that an NFT has an association with this phenomenon, there are a few things you can do. One option is to contact the original owner and get them to take back control of the token. If that’s not possible, you may be able to sell the token in an 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. Overall, sleep minting is a severe threat to the NFT market, and buyers should protect themselves from it. 

By being aware of the danger and using caution when buying tokens, you can ensure that your investment is safe.

Final Thoughts

Bitcoin live price
price change

As the NFT market grows, it’s essential to be aware of the potential threats. Sleep minting is one such threat. However, by taking some simple steps, creators can help prevent it from happening.

Stay up to date with our latest articles

More posts

WMA: Bitcoin Tests $25,000, Ethereum Merge Gets Closer, and Altcoins Thrive

Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The Crypto Market ends the week at a total market capitalization of $1,175 trillion. Bitcoin has increased by over 6% this week. Ethereum gained almost 17% over the past seven days. XRP is up by nearly 3% this past week. Almost all altcoins are trading in the green, with very few exceptions. The DeFi sector increased the total value protocols (TVL) to around $44 billion. Crypto…

Tornado Cash DAO Goes Offline Following Blacklist

The DAO website for sanctioned crypto mixer Tornado Cash appears to no longer be operational. According to social media reports, this is also true for the platform’s Discord server. DAO Website Stops Going Through Earlier this week, the United States Treasury Department’s Office of Foreign Asset Control imposed a sanction on the Ethereum-based protocol. Since then, the platform has seen some of its resources become inaccessible. Additionally, various entities have begun distancing themselves from Tornado Cash’s services. Hence, the platform’s…

P2E Axie Infinity Cancels SLP Rewards On Classic Game Mode

Axie Infinity (AXS) has announced that its play-to-earn (P2E) platform will no longer offer token rewards on its classic game mode. The development team hopes its decision will help nudge users to its new game mode. Players will now have to use the newly launched Origin update to earn the game’s native currency, Smooth Love Potion (SLP). AXS to Balance SLP Economy Origin is the latest expansion in the Axie Infinity gaming ecosystem also known as Axie Battles v3. The…

Strike Announces ‘Visa Card’ Feature Letting Users Pay Anywhere With Bitcoin

The Bitcoin payments company Strike has partnered with Visa to integrate a ‘Visa card’ into its wallet app. This will allow Strike users to pay for goods and services in Bitcoin with any Visa-accepting merchant.  In a tweet on Thursday, Strike revealed its new Visa card, which it called the “Strike Card.” “You can now take Strike anywhere and earn rewards on everyday spending,” explained the company. The card rewards users with incentives for every purchase and charges no added…

Authorities Arrest Developer With Ties to Tornado Cash

Earlier this week, Netherlands’ financial watchdog the Fiscal Information and Investigation Service (FIOD) took a 29-year-old developer into custody. The FIOD carried out the arrest in Amsterdam due to suspicions of his involvement in money laundering operations using crypto mixer Tornado Cash. Tornado Cash Facilitating Crypto Crimes The arrest comes shortly after the US Department of Treasury announced sanctions against the privacy protocol. In a release, the Treasury cited Tornado Cash’s role in various crypto crimes since its inception in…

Brazilian Football Club Welcomes First Argentinean Crypto Signing Amid Economic Downturn

Harsh economic restrictions in Argentina have pushed the country’s football clubs towards cryptocurrencies. Recently, the first transfer of a football player via crypto instead of fiat occurred, marking a new era in football finances. Earlier this month, Sao Paulo Futebol Clube from Brazil paid $6-$8 million worth of USDC to Banfield’s Athletic Club for midfielder Giuliano Galoppo. The oscillating gap reflects the tempestuous value fluctuations between the US Dollar and the Argentinean Peso. The First Football Cryptocurrency Signing Galoppo's transfer…

What Is an Iceberg Order in Crypto?

Iceberg orders allow traders to buy or sell a large quantity of cryptocurrency without tipping off the market. By splitting their orders into smaller chunks, traders can execute their trades without causing undue price movement.  This guide will explain what iceberg orders are and how to use them in your trading strategy. What Is an Iceberg Order in Crypto Trading? An iceberg order lets traders buy or sell a large number of assets without revealing their intentions to the market.…

Ultimate Beginner Guide to Bitcoin Improvement Proposals (BIPs)

Bitcoin Improvement Proposals (BIPs) are essential tools in the crypto community. They allow the Bitcoin community to propose and vote on changes to the Bitcoin Core software.  BIPs can also work for other wallets/services and have a process for development and implementation. This guide will explore what BIPs are, how they work, and some of their benefits and risks. What are Bitcoin Improvement Proposals (BIPs)? Bitcoin Improvement Proposals (BIPs) are proposals for changes to the Bitcoin protocol. Anyone can submit…

MakerDAO Co-Creator Wants to Drop USDC for ETH

On Thursday, MakerDAO co-founder Rune Christensen shared a proposal via the network’s official Discord server. Christensen raised the suggestion that the MakerDAO organization should swap its $3.5B  worth of USDC for Ether. However, Ethereum creator Vitalik Buterin tagged Christensen’s plan a “terrible idea” despite the potential benefits of such a move on Ethereum’s value.  Christensen To Remove USDC Exposure Rune’s actual goal is to eliminate MakerDAO’s exposure to USDC following the US Treasury’s recent sanction on crypto mixer Tornado Cash.…

Ethereum Merge Officially Scheduled for September 15th

Ethereum developers have established tentative, official scheduling for the merge on September 15th. On that day, the network’s consensus mechanism will change from proof of work to proof of stake.  The date was established on Thursday during an Ethereum Foundation Consensus Layer Call. Developers agreed to target either September 15th or September 16th with the upgrade. However, the timing remains an estimate, and devs stressed that the official date is not finalized yet. On Thursday, developer Tim Beiko tweeted the…