In this week’s newsletter, read about how non-fungible tokens (NFTs) hosted on the FTX exchange are now showing blank images. Find out how NFTs can solve diamond certificate fraud and how the NFT space is being hampered by oversupply. In other news, find out how celebrities are facing a class action lawsuit. And don’t forget this week’s Nifty News post featuring the classic Winamp media player adding support for NFTs.
NFTs were minted at the FTX break, highlighting the drawbacks of Web2 hosting
NFTs hosted on the beleaguered exchange FTX have been affected by the collapse of the organization. After FTX filed for bankruptcy, its FTX.US domain was redirected to a page providing details of the bankruptcy proceedings.
For this reason, NFTs hosted within the platform now display blank images instead of their original artwork. Owners of NFTs can still see the existence of NFTs. However, the images cannot be seen when NFTs are listed for sale or even inside their wallets.
NFTs can help solve fraud in diamond certificates
As counterfeiting of diamond certificates becomes more common, some believe that NFTs could be a good solution to combat this problem. Speaking with Cointelegraph, Diamond Dawn founder Mike Moldowsky said that reports of diamond certificates should be placed on the public blockchain, ensuring that the documents cannot be tampered with.
According to Moldawsky, a diamond certificate running on the Ethereum blockchain will ensure its immutability, proof of ownership, and visibility to consumers and retailers.
NFT Market Stumbled Due To Oversupply, Greed, And Bad Projects: Gary Vee
Social media expert and NFT proponent Gary Vaynerchuck recently argued that excess supply, short-term greed, and spin-offs are the reason for the NFT market’s downturn in the past year. According to Vaynerchuck, the demand for NFTs will not be able to keep up with the high supply.
Due to the “ridiculous amount” of NFTs being minted, Vaynerchuck said it is unlikely that the NFT space will see another market boom, similar to 2021. However, the entrepreneur argues that there will be 1-3% of NFT projects that will go on to become Amazon and eBays in this industry.
Yuga Labs, Moonpay faces lawsuit over celebrity NFT offering
The creators of popular NFT pool Bored Ape Yacht Club (BAYC) and crypto-fintech company Moonpay are facing a lawsuit for allegedly using celebrities to mislead consumers and promote NFTs.
Celebrities like Paris Hilton, Snoop Dogg, Justin Bieber, and Madonna have been named as defendants in the class action lawsuit. The lawsuit was filed by John T.
Nifty News: Winamp adds NFT support, Atari gets physical support, and more
The classic media player Winamp has announced support for Ethereum and Polygon-based music NFTs with its latest update. The music player has been around since 1997 and is known to support a wide range of file types. On the other hand, Crypto.com and Coca-Cola have jointly launched NFTs that display heat maps to players during the 2022 World Cup matches.
Thank you for reading this summary of the week’s highlights in the NFT space. Come back next Wednesday for more reports and insights on this actively evolving space.