1 year ago
NFTs hosted connected FTX level were affected by the firm’s collapse, showing blank images alternatively of the archetypal art.
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Collect this nonfiction arsenic NFTThe FTX illness highlighted galore flaws successful the crypto industry. Now, the effects of the FTX debacle person breached into the nonfungible token (NFT) abstraction with users incapable to presumption their FTX-hosted NFTs.
In a tweet, Solana technologist jac0xb.sol pointed retired however the metadata of FTX-hosted NFTs present points to a restructuring website that gives retired accusation astir bankruptcy proceedings. According to jac0xb.sol, the NFTs minted connected FTX were hosted utilizing a Web2 exertion programming interface (API), resulting successful images not showing.
Example of an NFT hosted by FTX. Source: Magiceden.ioAfter the FTX speech filed for bankruptcy, the FTX.us domain was wholly redirected to the bankruptcy proceeding page. Because of this, NFT owners are inactive capable to spot that their NFTs exist. However, images cannot beryllium seen anymore, adjacent erstwhile viewing them wrong wallets oregon listing them connected NFT trading platforms.
With this, jac0xb.sol besides called retired to collections that are inactive hosting metadata connected Amazon Web Services, suggesting that determination is simply a “lesson to beryllium learned” with however FTX hosted their NFTs utilizing a Web2 API service. In addition, immoderate users adjacent commented that this highlights problems with Web3 companies relying connected centralized services similar AWS oregon the Google Cloud Platform.
Related: The FTX contagion: Which companies were affected by the FTX collapse?
On Aug. 5, NFT executives brought up the taxable of NFTs not surviving connected the blockchain. In a Cointelegraph interview, Jonathan Victor, the Web3 retention pb astatine Protocol Labs and Alex Salnikov, the co-founder of Rarible, explained that technically, the tokens are stored determination else. The duo highlighted that main chains often are precise constricted successful size and that it costs much to store information connected the blockchain.
Despite the troubles brought astir by the FTX collapse, the NFT manufacture remains assured successful the aboriginal of the space. On Nov. 22, assorted players wrong the NFT abstraction spoke with Cointelegraph and expressed their confidence that the abstraction volition yet recover. The executives highlighted that it's important for the NFT assemblage to absorption connected bringing much inferior to their collections.
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