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Before the Sale, the Blockchain Community Exposes an Alleged $20 Million NFT Drop Fraud

The accused scammers were stopped dead in their tracks thanks to observant crypto fans.

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#nft #nfthours #coffeezilla #scam #rugpull

Late Wednesday, online detective and Youtuber Coffeezilla released a new video detailing how he, along with members of the blockchain community, stopped a rumored $20 million nonfungible tokens, or NFT, fraud from becoming a reality. According to Coffeezilla, there was a lot of fan anticipation for a new crypto project named “Squiggles,” which had an NFT drop set for February 10. Squiggles had almost 230,000 followers on Twitter at the time.

An unidentified user produced a 60-page article claiming Squiggles’ creators were paid puppets just hours before the planned drop. At the same time, the real people behind the project were said to be members of a ring of serial NFT con artists known as “NFT Factory LA.” While quoting the document, Coffeezilla narrates:

“It meticulously documents allegations of NFT Factory LA, consisting of “Gavin, Gabe and Ali,” behind not just Squiggles but several NFT scams. These include League of Sacred Devils, League of Divine Beings, Vault of Gyms, Sinful Souls, Dirty Dogs, Lucky Buddhas, and on and on”

The alleged series of frauds did not go unnoticed, and Gavin, Gabe, and Ali were soon doxed for coordinating the claimed rug-pulls by enraged crypto aficionados. As a result, they had to engage “stooges” to help them with future initiatives like Squiggles. However, photographs circulated on Instagram before the project’s $20 million NFT drops, reportedly showing Arsalan, the founder of Squiggles, and Gavin together in the same Rolls Royce.

“Basically, these guys churn out NFT projects that have the appearance of trust and quality. And then, after launching, it turns out, they’re just cash grabs.”

They later appeared at the same club, holding a sign that read “Squiggles Boys,” and a photo of Gavin, Gabe, and Ali in the same spot surfaced. “People soon put two and two together,” Coffeezilla added. Unfortunately, the project was delisted by OpenSea just hours after its launch.

It appears that the alleged con artists also attempted to control the NFT sale volume. As discovered by Coffeezilla:

“[Via EtherScan] A single account spent 800 ETH [$2.384 million], which is over $2 million spread across two transactions that created hundreds of new wallets. These shadow wallets then bought three Squiggles NFTs and immediately listed them on OpenSea for less money.”

“We don’t know if this resulted in profits or losses, but either way, they were prevented from making the $20 million they could have made, and that’s wonderful,” the YouTuber explained. In the blockchain community, Coffeezilla is notorious for exposing alleged scammers and warning members of rug pulls. He broadcast an interview with infamous Youtuber Ice Poseidon earlier this month, in which he publicly refused to repay investors’ funds following an alleged $750 thousand decentralized financing rug grab.

ART & COLLECTABLES

Ford is getting ready to enter the Metaverse with digital cars and NFTs

A month after the company announced significant personnel reductions, it has filed a trademark application covering its future initiatives in the Metaverse and NFT space.

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Ford Motor Company, an American automaker, has filed 19 trademark applications across its key automobile brands as it prepares to enter the realm of nonfungible tokens (NFTs) and the Metaverse.

Mike Kondoudis, a trademark attorney licensed by the United States Patent and Trade Office (USPTO), disclosed in a tweet on Wednesday that the business had submitted a total of 19 trademark applications covering its car brands, including Mustang, Bronco, Lincoln, Explorer, and F-150 Lightning, among others.

The trademark applications include a projected online marketplace for NFTs and virtual versions of its businesses’ automobiles, trucks, vans, SUVs, and clothes.

Ford intends to produce digital images of its vehicles, SUVs, trucks, and vans that will be verified by NFTs, according to USPTO filings submitted by the automaker on September 2.

The business also disclosed plans for “downloadable virtual commodities,” or “computer programs,” that would include apparel, accessories, and parts for vehicles for usage in “online virtual environments,” such as virtual and augmented reality trade exhibitions.

Additionally, there are plans to develop an online marketplace for “others’ digital artwork” as well as “online retail shop services featuring non-fungible tokens (NFTs) and digital collectibles.”

Less than a month after Ford Executive Chairman Bill Ford and CEO Jim Farley announced significant personnel reductions from its global workforce to decrease corporate expenses; Ford has decided to enter the Web3 area.

Ford isn’t the first automaker to enter the Metaverse market.

While premium automakers like Bentley and Lamborghini have already launched NFT collections, automakers including Nissan, Toyota, and Hyundai have indicated ambitions to enter the fast-expanding Metaverse market.

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ART & COLLECTABLES

Crypto-Vultures Profit from the Death of Queen Elizabeth

Only a few hours after the Queen’s passing, more than 40 meme tokens bearing her name have been released.

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Yesterday, according to Buckingham Palace, Her Majesty Queen Elizabeth II passed away. Although her loss triggered a global outpouring of sympathy and grief, it has also been exploited as a money-grab.

Elizabeth II, monarch
Grift endures eternally, but the Queen is gone.

There are over 40 meme coins on Ethereum and the Binance Smart Chain thanks to Queen Elizabeth’s passing (and at least one exploitative NFT collection).

While the news of the British monarch’s demise saddened people worldwide, cryptocurrency scammers took advantage of the occasion to launch dozens of meme coins with Queen themes on Ethereum and Binance’s BNB Chain.

Among the new crypto coins that were introduced are “Queen Elizabeth Inu,” “Queen Doge,” “God Save The Queen,” “London Bridge Is Down,” “Queen Grow,” “Rip Queen Elizabeth,” “Elizabeth II,” and “Queen Inu II.” Other tokens with the name of the next king, King Charles III, have also appeared. According to DexScreener, at least 40 separate meme coins appear to have been produced in the previous six hours.

The most liquid tokens, Save The Queen and Queen Elizabeth Inu, have already processed trade volumes of around $700,000 and $200,000 since their debut. At the time of writing, the price of Queen Elizabeth Inu is up 1,517%, while it has increased by 23,271% on Binance Smart Chain and 3,708% on Uniswap. Prices are incredibly unstable and exceedingly unlikely to persist.

The “Queen Elizabeth 69 Years NFT” NFT set has reportedly been produced. One image is said to represent each year of the Queen’s reign in the collection. The project’s aims should be questioned because Elizabeth II reigned for 70 years, not 69.

The crypto community, typically known for its gallows humor, mainly reacted negatively to the initiatives. When told about the NFT collection, NFT aficionado ThreadGuy said, “You’re going to hell.” Trader Byzantine General declared, “We’ve got to stop this crypto stuff.”

In 1926, Queen Elizabeth was born. She was the longest-reigning British monarch in history and passed away in Balmoral Castle at 96.

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ART & COLLECTABLES

One crypto sector, according to billionaire Chamath Palihapitiya, is experiencing a classic bubble cycle

One crypto sector may be going through a typical hype cycle, according to billionaire investor and software entrepreneur Chamath Palihapitiya.

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In a new episode of the All-In podcast, the CEO of Social Capital discusses the sharp decline in trading volume in the non-fungible token (NFT) market.

Palihapitiya offers Coachella and Burning Man as examples of major music festivals that strive to be distinctive but may wind up being mostly the same.

The billionaire contrasts NFTs and the overall art market with the two music events.

“I do believe that there is something going on; the simplest way to explain this is with the Burning Man/Coachella scenario. Many of these things are similar, but when some people approach anything new, they are too insecure to accept that it is similar to another item, so they spend a lot of time attempting to convince you that it is different. When someone says that a time is different, it’s probably not that different, as stated in the Warren Buffett quote, is an example. Or consider the other famous historical adage, “Things don’t always repeat in history, but they rhyme.”

All of this is meant to imply that, aside from major advances in science, not much new has been discovered recently. We keep repeating the same patterns, and one of them is the social capital that comes from making certain decisions and then having those decisions validated by others in order to feel valuable. And this occurred in NFTs, as well as, I’m sure, in the initial stages of several artistic movements. These events are more comparable than dissimilar because they have presumably occurred in a number of other markets as well.

Burning man and Coachella are same. The art market and NFTs are both the same. It doesn’t need to be unusual; you can simply appreciate it because you think it’s cool. I would just take it with a grain of salt and tell anyone who comes to you asking why it’s so different.

DappRadar reports that earlier last week, trading volume on popular NFT marketplace OpenSea reached a one-year low.

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