NFTs hosted on FTX no longer have any value

NFTs hosted on the FTX platform are now corrupt and invisible, reveals Solana blockchain engineer. In theory, they no longer have any value.

New revelations in the FTX scandal. After learning that FTX was selling fake bitcoins to its users, it appears that its NFT (non-fungible token) policy was not exemplary either.

As a reminder, an NFT (“Non Fungible Token” or non-fungible token) is a digital title, issued by a blockchain (mainly Ethereum) and linked to a digital asset (photo, video, etc.). Each NFT is unique and cannot be reproduced. NFTs are used in art, the luxury sector or for trading cards in sports.

“Corrupt”

On Twitter, engineer “Jac0xb.sol” of the Solana blockchain (who likely owned NFTs circulating on this blockchain) revealed that the metadata for the NFTs hosted on FTX was “corrupt” and now redirected to FTX’s restructuring page. As a reminder, the giant FTX went bankrupt on Friday, November 11.

“Oh look, FTX hosted all the mint NFTs on their platform using a Web2 API and now all those NFTs have broken metadata and the links go to a restructured site. […] There is a lesson to be learned here, but collections continue to host metadata on Amazon Web Service.

Furthermore, FTX used a centralized service (Amazon Web Service) of web2 to host the metadata of these NFTs, while this universe is more correlated with decentralized services of web3.

More visible

For holders of NFTs hosted on FTX, this means that while NFTs still exist, their images are no longer visible “even when viewing them in wallets or listing them on NFT exchanges”. , emphasizes the specialized media Bitcoin.com. Users “find themselves with NFTs with corrupt metadata, the latter being the essential component of an NFT,” Cryptoast emphasizes.

In the same way that users could transfer their private keys (cryptocurrencies) to cold wallets to be able to store them and not depend on a centralized platform, they could do the same with their NFTs. But it seems too late. “The metadata is inherently corrupt, so unfortunately this will not save it,” the outlet said.

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