Before the Super Bowl, an NFT video of Tom Brady was sold for $40,712. This leads many Non-Fungible Token users to want to ride the wave with celebrities, but there is a need to be very careful about the vulnerabilities of the blockchain. 

And indeed, NFT marketplaces have lost over 38 million dollars due to crypto scams in the last year. 

Tom Brady NFT at $40,000, but marketplaces lose over $38 million due to scams

Before Super Bowl LVIII, a Tom Brady NFT video was sold for $40,712. Also, the Joe Montana NFT, who has previously played for both the Chiefs and the 49ers, was sold for $34,000.

The allure of celebrities behind these NFTs could boost the demand for other cryptocurrencies, especially with major sports and star events on the horizon.

However, users should be warned about the dark side of the NFT industry, which is crypto scams. 

According to data collected by the Smart Betting Guide, it seems that NFT marketplaces have lost over 38 million dollars in funds due to scams in the last year.

In practice, although the blockchain offers its benefits such as transparency, decentralization, and verifiable authenticity, it can become susceptible to security risks such as phishing attacks, physical theft, malware, and social engineering attacks.

NFT Tom Brady  at $40,000 but beware of scams: Ethereum is the most affected

Smart Betting Guide has compiled several rankings, analyzing a database that records cryptocurrency scams and exploits to identify the most vulnerable platforms and blockchains of the past year. 

And indeed, out of over $38 million stolen, 37 million seems to have been stolen from Ethereum users, making it the most targeted blockchain with 97% of scams. Following that, there is the Binance blockchain with over $1 million and Cardano with $25,000. 

With these numbers, the category of NFT doesn’t seem to be the most affected by crypto scams of all kinds, in fact it ranks only in seventh place. 

In this sense, cryptocurrency bridges lost over 409 million dollars last year, while “CeFi” saw nearly 250 million dollars stolen in 2023 by cybercrimes. 

In this regard, Zigmas Pekarskas, CEO of Smart Betting Guide, stated: “

“Some platforms, including NFT databases, are more susceptible to cybercrime than others. When making transactions on one of these platforms, make sure to do your research and due diligence. Research the NFT market and the seller, focusing on reviews, ratings, and feedback from other users. This should also be done when purchasing an extremely limited or sought-after item, such as the Tom Brady NFT sold before the Super Bowl. Verify that the NFT you are interested in is authentic and not an authorized copy, and check the usage rights.” Use a secure cryptocurrency wallet to store your funds and NFT assets, preferably with multi-signature support, and report any suspicious activity or fraudulent listings to the marketplace’s support team as soon as possible.”

Ethereum is the blockchain most affected by crypto scams

Recently, Smart Betting Guide has published another set of results, in which they see Ethereum as the blockchain most affected by crypto scams in the last year.

The study took into account the most common scams, cumulative losses, and vulnerable blockchains. 

In this sense, Ethereum has seen 576.6 million pounds stolen, considering all the funds returned as well. This represents a loss that is 605% higher than the average of blockchains. 

The report added that the crypto scam that resulted in the highest loss on Ethereum is access control exploits. In practice, here, scammers exploit system vulnerability to gain direct access to users’ credentials or data. 

According to the New York Times, the NFT venture of NFL legend Tom Brady has recently adopted a new strategy in response to ongoing controversies. 

Therefore, Autograph is now focusing on a broader approach to help celebrities foster loyalty with their fans and has made changes to its marketing, eliminating some cryptographic terms. See below for all the details. 

Tom Brady and his Autograph NFT: a change in strategy addressed in the context of disputes 

As anticipated, the non-fungible token (NFT) company founded by NFL legend Tom Brady is changing its strategy in response to bearish market woes, according to a report in the New York Times recently. 

Indeed, Autograph’s revenue shrank in 2022 due to the general downturn in the digital asset sector. 

As a result, the company reduced staff by laying off more than 50 employees, as reported by Insider in May and confirmed by the Times. 

Autograph, founded by Brady in 2021 to enable celebrities to sell NFTs to their fans, secured $170 million in Series B funding last year. 

However, the company is now taking a broader approach, focusing on helping celebrities promote loyalty to their fans, and has reduced its use of crypto terms in its marketing, according to the Times. 

Tom Brady’s crypto reputation has also been compromised as a result of his association with FTX, where he accepted shares worth about $30 million as a brand ambassador while the exchange is now bankrupt. 

Brady, along with other personalities such as his ex-wife Gisele Bundchen and basketball star Stephen Curry, is the subject of a lawsuit by FTX investors for alleged deception. 

Tom Brady massive NFT platform funding: the details 

As anticipated, Autograph completed a $170 million Series B funding round last year, which was co-led by Andreessen Horowitz (a16z) and Kleiner Perkins.

Other participants in the round included Nicole Quinn, executive partner of Lightspeed Venture Partners, and the new venture capital firm of Katie Haun, alum of a16z.

As part of the investment, Haun, a16z executives Arianna Simpson and Chris Dixon, and Kleiner Perkins partner Ilya Fushman will join Autograph’s board of directors.

As a reminder, Autograph, which was founded in July, has launched non-fungible token (NFT) collections featuring Brady, Tiger Woods, Naomi Osaka, The Weeknd, Simone Biles, Tony Hawk, and Darek Jeter. Brady and The Weeknd are also board members of Autograph.

How was Tom Brady involved with the crypto exchange FTX?

During the height of the cryptocurrency markets in June 2021, Tom Brady, a seven-time Super Bowl champion, along with his ex-wife Gisele Bündchen, had announced that they had entered into stock deals with FTX.com and FTX.US (legally separate entities). 

The agreement called for Brady to become a brand ambassador for the exchange platform, while Bündchen would serve as an advisor for environmental and social initiatives.

Brady and Bündchen were quickly associated with FTX, becoming prominent faces along with founder Sam Bankman-Fried. 

The financial details of the deal were not disclosed, but FTX subsequently sought to raise funds with a $32 billion valuation.

Now, as is obvious, that equity has significantly reduced in value following the disaster and implosion of the FTX crypto exchange in November 2022. 

For Brady, unfortunately, this represents just one more chapter in a year that was already complicated. Indeed, in February of the year before, he had announced his retirement from the NFL after failing to make it to the Super Bowl, expressing a desire to devote more time to his family. 

However, a few weeks later, he recanted his decision and announced his return to the field.

Related posts
More from author