OnlyFans model Vanessa Sierra accused of scamming debut NFT project
Vanessa Sierra, an OnlyFans model, has been accused of scamming her debut NFT project, “Smol Boyz Land.” The on-chain auditor and NFT analyst, OKHotshot (@NFTHerder on Twitter), posted a Twitter thread detailing the alleged misconduct. The thread specifically addresses the project launch, where the funds went, and Vanessa’s history.
Update: The Smol Boyz Land Twitter has been deleted after publication. This further proves the rug pull hypothesis.
NFT scam exposed
The project, launched in March, raised 127 ETH on launch day, which was sent to a multi-sig wallet (a wallet that requires two or more people to sign off on a transaction). The project’s whitepaper states that prices would trend upwards, encouraging people to invest.
However, according to OKHotshot, 18 ETH was sent to two wallets using the multi-signature wallet after minting, with one wallet used to buy 28 SmolBoyz NFTs that were transferred over 6 wallets. This is a classic example of wash trading by the project founders.
Furthermore, co-founder @itsreagan.eth is said to have used the remaining 2.9 ETH to pump up the floor prices of the project and create fake demand. The Twitter thread has sparked widespread concern among the crypto community, and there are calls for stricter regulations and oversight in the NFT space to prevent such incidents from occurring in the future.
Wash trading is rampant in the NFT industry
Wash trading is a form of market manipulation where a trader buys and sells a security for the express purpose of creating the appearance of increased trading volume. This can artificially inflate the price of the security and mislead investors. It is illegal in most countries, including the United States, and is considered a serious offense.
In the NFT space, wash trading is a common tactic used by nefarious actors to create the illusion of high demand and drive up prices. This can lead to investors being defrauded and losing their money. The lack of proper regulation and oversight in the NFT space has made it easy for such practices to go unchecked, leading to widespread concern among the crypto community.
There have been several instances of wash trading in the NFT space. In fact, according to Saravanan Jaichandran, co-founder and chief data scientist of BitsCrunch, nearly half of the total volume of NFT transactions on the Ethereum blockchain are impacted by wash trading. BitsCrunch is working on solutions to address these types of problems in the NFT market. The company aims to help investors make informed decisions by identifying the authenticity of NFT assets and estimating their true value.
The incident involving Vanessa Sierra and Smol Boyz Land is a reminder of the need for caution when investing in NFTs. It is important for investors to do their own research and due diligence before investing in any NFT project and to be aware of the potential risks and pitfalls.
In conclusion, these issues demonstrate the need for greater regulation and oversight in the NFT space to protect investors from fraudulent activities. The case also serves as a cautionary tale for those considering investing in NFTs, highlighting the importance of conducting thorough research and exercising due diligence.