Last October on Artnome, NFT enthusiast Jason Bailey detailed one of the lurking snakes of NFTs:
One line that made it into all my interviews and presentations was: “Even if the marketplaces go out of business, your CryptoArt (this was before we called them NFTs) will always be safe because they are decentralized on the blockchain.” I was wrong.
By mid-2018, cryptocurrencies started to crash and NFT marketplaces disappeared along with the art, and sometimes even the NFTs themselves. I still own the first NFT by the artist XCOPY, whose works have recently sold to collectors like Snoop Dog for millions of dollars. Mine, too, would be worth millions of dollars today, but I purchased it from a marketplace that went out of business. Now, it is worth nothing.
Similarly, I purchased several works on R.A.R.E Art Network, but most of them are no longer supported since that marketplace went out of business. Though, to their credit, they are trying to help recover them. Same story for works I bought on many other marketplaces that did not survive the 2018 bear market… Editional, Digital Objects… the list goes on.
And thus his creation of ClubNFT.
Meanwhile, on the other side of the abyss is Molly White (no relation, at least of which I’m aware) and her team, and their chronicle of miscreants of NFTs, blockchains, and cryptocurrencies, Web3 is going just great. A post:
A trader set very low limit order on Ripple’s XRP token, and was delighted to see it executed with XRP very briefly plummeted in value in what’s known as a flash crash. The price recovered quickly, and the trader found themselves $458,000 wealthier. However, when they tried to withdraw some of their money from the exchange they were using, LAToken, the withdrawal was declined and their account was restricted for 24 hours for an unspecified terms of use violation. When the trader regained access to their account, the XRP they bought was nowhere to be found.
Oooops. Not that this couldn’t happen with an unscrupulous traditional stockbroker, but at least you’d have a shot at recovering the money. This guy? Not so much.
Not sure about web3? Here’s a link.
