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The accusation (I don't know if it's true, I know next to nothing about NFTs) is that person A buys and NFT for $10,000. Because NFTs are online, and likely ps
by curryst 6y ago
The accusation (I don't know if it's true, I know next to nothing about NFTs) is that person A buys and NFT for $10,000. Because NFTs are online, and likely pseudonymous, they proceed to list it for sale, and then bid on it to drive the price up to $50,000. Person A still owns it, but to the rest of the world if looks like person B bought it. They then proceed to relist, pump up the price to $100k, and buy it themselves.
To the rest of the world, it looks like the value of this NFT grew by 2 orders of magnitude in a week. In reality, that person is leveraging the pseudonymous nature to just make it appear that way, in hopes that when they list it for $200k, someone else will actually buy it. They cleared $190k for making a couple of garbage auctions.