NFTs hosted on the FTX platform are now corrupted and invisible, Solana’s blockchain engineer reveals. 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 seems that its NFT (non-fungible token) policy was also not exemplary.
As a reminder, an NFT (“Non Fungible Token”) is a digital property title, issued by a blockchain (mainly Ethereum) and associated with 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.
On Twitter, engineer “Jac0xb.sol” of the Solana blockchain (who presumably owned NFTs circulating on this blockchain) revealed that the metadata of the NFTs hosted on FTX were “corrupt” and are now being redirected to the restructuring site from FTX. 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 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 Amazon Web Service.
In addition, 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.
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,” the specialist media Bitcoin.com underlined. Users “find themselves with NFTs with corrupted metadata, the latter being the essential part of an NFT,” Cryptoast underlines.
In the same way that users can transfer their private keys (cryptocurrencies) to cold wallets for safekeeping and not rely on a centralized platform, they can do the same with their NFTs. But it seems too late. “The metadata itself is corrupted, so this unfortunately won’t save it,” the outlet said.