The owners of NFT purchased through the old cryptocurrency exchange platform FTX had the unpleasant surprise to find them… different.
It’s what we call falling from Charybdis to Scylla for all those who had trusted Sam Bankman-Fried! While his FTX crypto platform has been bankrupt for about a month, he himself is sinking into a pretty mind-blowing defense and we even recently learned that fake bitcoins were being sold on FTX, here comes another news to fall. NFTs acquired on the platform are now empty and worthless.
Corrupt metadata
It was the specialist “Jac0xb.sol”, an engineer working for the Solana ecosystem, who revealed the pot of roses on Twitter. After analysis, he noticed that the metadata of the NFTs created on FTX were now corrupted.
” FTX hosted all NFTs created on its platform using a web2 API and now all these NFTs have corrupted metadata and the links direct to a restructuring website he explained on his account. The second screenshot supporting his claim shows the FTX webpage to which these links lead, which now displays details of the bankruptcy proceedings.
The NFTs thus damaged still exist, which can be verified by their holders. However, it is now impossible to see them, even when the owners consult them on their wallet. However, the value of an NFT based precisely on its image, it is obvious that in this configuration, it is no longer worth anything!
Web3 is still a long way off
Beyond the loss on NFTs that has just been noted, Jac0xb.sol at the same time felt that a lesson could be learned from this sudden collapse. Indeed, while NFTs are a creation linked to the Web3, he remarks that ” of collections still host metadata on [Amazon Web Service] », Amazon’s centralized cloud service. And we can observe the inconveniences linked to this dependence.
These problems of decentralization could still be talked about in the future. Some of the NFTs remain hosted on private servers (40% according to figures from ClubNFT) and therefore runs the risk of experiencing the same misadventures one day.
Source : Corner Telegraph
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