A Solana engineer revealed that FTX used Web2-targeted application programming interfaces (APIs) for non-fungible token (NFT) metadata offered on its platform. Today, the latter redirect to the site relating to the bankruptcy of FTX and their data is therefore corrupted. Therefore, holders of some of these NFTs end up with worthless coins.
Web2 and blockchain don’t mix at FTX
Almost a month after FTX’s declaration of bankruptcythe collapse of the platform continues to cause damage and its foundations are beginning to cause concern.
Indeed, we learn today that NFT metadata hosted at FTX now redirects to a restructuring website providing information about the failure of the exchange.
The news was revealed by Jac0xb.solengineer on the Solana blockchain, who also informs us that FTX used a programming interface (API) intended for use for Web2.
Oh look FTX hosted all the NFTs minted on their platform using a web2 API and now all those NFTs have broken metadata and the links go to a restructuring website. pic.twitter.com/hsQgVru4BL
— jac0xb.sol (@jacobdotsol) December 7, 2022
“Oh look, FTX hosted all mint NFTs on their platform using a Web2 API and now all those NFTs have corrupted metadata and the links go to a restructured website […] There is a lesson to be learned here, but collections continue to host metadata on AWS. »
Here, Jac0xb refers to Amazon Web Services, the cloud computing service of giant Amazon. Indeed, it can be interesting to measure the relevance of NFT hosting on a totally centralized solution, like in particular Google Cloud or Microsoft Azure, whereas totally decentralized solutions exist today to meet this type of need.
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Purely unusable NFTs
Thus, users affected by this unfortunate news end up with NFTs with corrupted metadatathe latter being the essential component of an NFT, especially when it is required to offer added value, as is for example the case of the “Coachella: Desert Reflections” collection.
This collection comes to mingle with a set of 3 ranges of NFT launched by the Coachella festival last February, which each offer different rewards, including lifetime access to the festival for the most expensive of them. In total, these 3 collections were able to collect no less than 1.5 million dollars.
And yet, today, this is what the NFTs in question look like:
Preview of an NFT from the “Coachella: Desert Reflections” collection on Magic Eden
Although FTX users had the option of leaving their NFTs hosted directly on the platform, they could also transfer them to an external wallet. Despite everything, the metadata being itself corrupted, Unfortunately, this will not save them..
News that won’t help provide the boost the NFT market needs, the latter currently observing daily trading volume at an all-time lowwith the equivalent of $25 million traded all day on December 7.
Traded volume of NFT over the last 12 months (in pink)
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Published by Editions Larousse
Sources: Magic Eden, Into The Block
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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