NFT Ethics issues a Cereal Club NFT scam warning. In a Twitter thread to its 55,000 followers, it produced a series of issues regarding the project.
Furthermore, it warned followers not to mint the project and stated, “CerealClub that is minting today is a scam.”
NFT Ethics is a Twitter account aiming to deliver legitimacy and scrutiny of NFT collections. Its mission is, “Uncovering inconvenient truths about this digital kingdom and its most influential players. To address the ethical issues and foundations of Web3.” Now, NFT Ethics believes that the new project is an NFT scam.
The Twitter thread goes into detail about several issues. Firstly, it says there is zero evidence to back up claims of funding and investors. NFT Ethics also stated, “Claiming they will use the profits for charity as well – we all know that that means.”
The thread goes on to mention issues on Discord. Apparently, Cereal Club banned some people for asking legitimate questions. NFT Ethics also takes issue with whitelist spots going to celebrities and not original Discord members.
Only time will tell if NFT Ethics is right to suggest that this project is an NFT scam.
NFT Ethics says Cereal Club is an NFT scam
NFT Ethics aims to stop scams and offer people the opportunity to avoid losing their money. However, it is not some kind of official outlet. Perhaps some form of regulation is inevitable. Significantly though, many are against outside involvement and argue it defeats the goal of decentralisation.
Obviously, there are many issues in Web3 regarding fraud and scams. However, this happens in all aspects of business across the world. Some argue that we only hear about the negatives of NFTs and Web3. Anytime a new financial ecosystem arises, there will always be scrutiny.