Phantom Wallet, located in Solana, has launched the Burn NFT Feature, which enables users can get SOL tokens as compensation for reporting spam.
The well-known Phantom Wallet has launched the “burn NFT function,” which pays users with SOL tokens for reporting spam, in an effort to stop the widespread cryptocurrency fraud that plagues the industry.
The news was made shortly after a significant cyber attempt in the first week of August on the cryptocurrency wallets headquartered in Solana. Thieves stole roughly $5.2 million worth of cryptocurrencies after stealing into over 8,000 Solana-based cryptocurrency wallets, mostly Phantom wallets.
In a subsequent tweet, Austin Fedora, Solana’s head of communications, said that “60% of the wallets emptied” during the incident were Phantom wallets. Users are encouraged to report frauds and earn SOL tokens by burning NFTs by using the new function of Phantom.
On Thursday morning, Phantom posted the information in a blog post. According to Phantom, users may access the new feature via the Collectible tab of the wallet app. Additionally, it said that when the burnt token is taken out of the wallet, the users will get SOL tokens as “rent.”
If a certain scam NFT is detected, The Phantom’s staff will ban the contract addresses and domains. The harmful or fraudulent NFT will help to be removed from the wallet with the use of this technique.
Phantom wants to cut down on hacking efforts by gathering and spreading a list of spam and phishing NFTs.
The new feature will increase the overall security of the Solana blockchain.
“Web 3 is still in its early stages. The cryptocurrency ecosystem has grown, and according to Phantom’s blog, “bad actors have followed pace, finding new ways to steal customers’ assets.” According to reports, the fast growth of cryptos has coincided with an increase in hacking attacks and spam NFTs.
The Phantom team’s site-blocking system, which also contains data on fraud patterns, already includes more than 800 illegitimate NFT collecting mint addresses.
These spams are common on the Solana blockchain because of their reduced transaction pricing.
Cybercriminals make use of the NFT airdrop capability, which enables users to get free NFT for the attacks. The scam artists typically advise buyers to click on a link in the description in order to obtain the free NFTs; however, when they do so, a malicious website is viewed.
In order to “mint” or “claim” free NFT, the user may be asked to confirm a transaction. Alternatively, the criminal may ask for the seed word in order to empty the account.
“These scams are becoming increasingly sophisticated. For instance, if a contract address and domain are discovered to be fraudulent, scammers may change the information on an NFT to avoid being blacklisted. We’re committed to winning, even if it often feels like a never-ending game of whack-a-mole “the company said.
Phantom is also establishing an internal reporting system to recognize spam NFTs in collaboration with NFT API vendor SimpleHash.
The new feature will increase the security of the Phantom Wallet. The contract address and domain may be prohibited by enabling spam reports. Investors may also get SOL tokens as “rent” by reporting spam NFTs. Due to the inherent risks connected with cryptocurrencies, users should be cautious about transactions made on third-party websites.
