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Stay away from Discord? Huh?

So Discord groups are getting hacked left and right right now.  There is a scam where you ban someone from a group and then make them share their screen to prove something to let them back.  When the share the screen the hacker tricks the admin into showing his Discord Token.  Within a few minutes, the Discord server is gone.  This isn't happening to small projects that no one knows.  I get updates from one of my NFT groups and according to the group today

Rap Empire Dao - Do not click links

Nifty Island Discord - Do not mint

Avacadoodz - Do not mint

Void Entity Discord - Do not click links

Bored Doge Club - Do not click links

Moshi Mochi - Do not click links.

I just bought two Moshi Mochi last night so this is a pretty relevant warning to me at least.  This is one of the reasons I am nervous to use collab.land to verify token ownership right now.  I haven't verified any of my NFTs or joined any of the walled Discord channels or groups.  I am sure I will trust it at some point so I can get some of the privelges you get from owning an NFT but perhaps I will transfer the NFT out of my master wallet and leave it by itself in a lone Metamask.  At least if I get compromised, I would only lose the one NFT.  I am thinking about setting up my wallets like a properly setup up Real Estate Operation.  In the United States when you own real estate for business reasons, it is often best to set the real estate up as its own entitiy.  If you own multiple properties, each properly should be its own separate tax paying business.

This way if you go bankrupt on one building, you don't bankrupt the whole company.  Each one is separate and stands on its own.  Perhaps each NFT that has utility should also go in its own wallet for safe keeping.  If you get hacked, they only get one NFT and not your whole wallet.

Here is some advice from PC Magazine on how to not get ripped off buying NFTs.  Everyone gets ripped off but hopefully you can minimize it.

 

If, after reading all of this, you’re still interested in purchasing or selling NFTs, here are some key tips to reduce the possibility of getting ripped off.

  • Do your homework. Check into every aspect of a transaction before agreeing to it. Is it being conducted on a reputable marketplace? Does the other party, seller or buyer, have a transaction history that you can view? 

  • Don’t open any files from senders you don’t know very well. Hackers have already started creating viruses that explicitly target cryptocurrency wallets. Avoid clicking any links on unsolicited emails, as they can also lead to fraudulent exchange sites.

  • Watch out for giveaways. Although the NFT space is rife with them, these free “drops” can often carry with them unwanted security exploits. Because each NFT is tied to a “contract” that determines what can be done with it, unscrupulous hackers can load them with authorizations to access your wallet, sell your holdings, and more. Never accept an NFT from someone you don’t know and trust 100%.

  • Most importantly, never give your seed phrase or private key to your crypto wallet to anyone. New participants in the space might not be up to speed on the requirements of conducting transactions, but with these, anybody can enter your wallet and untraceably remove any NFTs or cryptocurrency.

Even if you follow this advice, there's still no guarantee that the NFT bubble won't pop and make your digital goods worthless anyway. But if you're comfortable assuming that risk, you should be able to trade confidently and safely moving forward.

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