NFT Rug Pulls? ERC721R Comes to the Rescue
- ERC721R is a new NFT standard that might help protect users from NFT rug pull scams.
- The Crypto Fighters team introduced the new standard, which will give buyers the power to request a refund for the NFT they purchased.
The NFT ecosystem has to deal with a lot of criticism, particularly from newcomers to the field. And some of their points are well-made. Rug-pulls, misleading revelations, and teams quitting projects are still all too common in the area.
Investors who pool their money into NFTs require some protection, which is what the team behind the ERC721R standard is aiming for by allowing customers to seek a refund if they aren't happy.
ERC721R standard - a necessity
The new ERC721R standard, which was introduced by the Crypto Fighters team, is a smart-contract update that allows customers to seek a refund for the NFT they coined within a certain time period.
This simple method has several advantages, not only for purchasers but also for projects that can demonstrate their commitment and belief in their initiatives.
Essentially, once an NFT with this standard has been created, the buyer may return the NFT to the smart contract and receive an automated refund, with no questions asked.
This will make rug-pulls more challenging to carry out, as well as reduce the chance of customers deciding they don't like the project's path after the mint.
Another benefit of this norm is that floor pricing is protected. Many purchasers who are dissatisfied with the NFTs they have minted are currently selling them on the open market for a cheap price. If ERC721R is implemented, the feature will allow buyers to retrieve their investment, which would keep open-market floor prices higher.
As it’s evident that most of the rug pullers walk freely with the loot, they stole from the innocents. It is crucial to keep the platform of the NFT technology safe for the users. The ERC721R will definitely be the savior in this act.
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