Many disappointed NFT holders are victims of rug pulls due to fraud and mismanagement.
In 2021, Rug pulls cost the consumer $2.8 billion. Many NFT projects fail to deliver on their promises: creating underlying asset value through user engagement and utility. The roadmaps most often promised staking, tokens, games and air-drops. Even after a few years, the users have seen very little if any of that delivered. Although some “rugs” were intentional. Most happened because the projects lacked technical expertise and access to ethical and competent technology partners. This phenomenon has led to negative perception of the industry, and it may deter mainstream adoption of a technology with great potential.