Dominic Kimani
The collapse of FTX has stirred up a new discussion. This time around, the crypto exchange has unmasked some of the flaws in the crypto industry following the sudden damage of the metadata of its minted NFTs.
Fallen FTX Breaks Metadata Of Its NFTs
In a December 7 blog post, jac0xb.sol, a renowned crypto engineer at Solana, questioned how the metadata of NFT hosted on FTX has disappeared, with digital assets now showing blank images instead of the original art.
There is a lesson to be learned here yet collections are still hosting metadata on AWS.
— jac0xb.sol (@jacobdotsol) December 7, 2022
According to jac0xb.sol, the NFTs minted on the fallen FTX crypto exchange were hosted using a Web2 application programming Interface (API). After the collapse, the domain was backed and redirected to FTX.us to enable NFTs holders to continue seeing their NFTs.
But shockingly, holders cannot view their digital collectibles within crypto wallets or list them on NFT trading platforms. Instead, FTX NFTs redirect NFT holders to the restructuring bankruptcy proceeding page.
Industry Experts Weigh In On NFT Metadata
The Solana engineer has warned collections hosting metadata on Web2 services, suggesting that there is a lesson to be learned following the collapse of FTX. He has also raised concerns about companies relying on centralized services such as AWS or Google Cloud platforms.
Earlier this week, the Cointelegraph media platform prepared a forum that brought together several notable executives in the NFT space to discuss the topic of digital collectibles hosted outside the blockchain.
During the interview, Jonathan Victor, the Web3 storage lead at Protocol Labs, and Alex Salnikov, the co-founder of Rarible, explained that, technically, the tokens are stored somewhere else. The top heads noted that leading chains are often very limited in size and that keeping data on the blockchain costs more.
Before summarizing, Victor and Salnokov urged the NFT community to continue embracing more utility in their NFT collection. However, regardless of the recent implosion attracted by the collapse of FTX, the NFT industry remains confident in the future of the crypto space.
Related
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This article was written for Business 2 Community by Dominic Kimani.
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