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This NFT Metaverse Casino is in a lot of trouble

What would you say? You might want to think carefully about giving any of your hard-earned money to Slotie, a “metaverse casino” that just got an emergency stop and go order from four US states. According to CNBC, officials in Texas, Kentucky, New Jersey, and Alabama have accused the digital gambling house’s Slotie NFTs, which have been creatively named “Sloties,” of luring and cheating retail investors.

“Sloties are your ticket into the largest and fastest growing online Casino network on the blockchain,” reads the company’s site. “This is not your average Slot Machine: with Sloties it’s your house, your rules.” Even though Slotie is not a typical slot machine, investors probably made a bad bet on it.

About Slotie Betrayal

The supposed scam by Slotie looks such as a pretty standard web3 securities fraud. The site, which is based in Georgia, advertised its NFTs as stocks, promising consumers a piece of the casino’s profits in exchange for buying their digital assets. Which means that those NFTs are securities, but Slotie didn’t register them as such.

“The Slotie NFTs purportedly provide investors with ownership interests in the casinos and the right to passively share in the profits of the casinos.”

People have also said that the site hyped up its so-called investments by saying that 10,000 of its assets sold out in less than 10 minutes during one drop.

“There is no evidence on the blockchain,” reads the New Jersey filing, “of 10,000 Slotie NFTs selling out in under 5 minutes.”

Another sign that something is wrong? There was no way for people who bought NFTs to actually get in touch with the company or its owners.

Red Flags

But even though there were some red flags, Slotie was really just using the same tricks that even the most well-known crypto operations use: persuading people they’re getting in on the ground floor of something big, even if they don’t really comprehend what it is to start with.

“The latest metaverse investment products — NFTs that purport to provide passive income — often bear significant undisclosed risks,” Joe Rotunda, Texas’ securities board director, told.

“These risks are often significant,” he continued, “and investing in virtual realities can leave investors virtually broke.”

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About Daniel P.

This NFT Metaverse Casino is in a lot of troubleDaniel is a Web content creator and technical writer who loves talking about Web3, NFTs and other blockchain-related topic and news.

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