A number of problems in the bitcoin business became apparent during the FTX collapse. Non-fungible tokens (NFTs) stored by FTX are inaccessible to users as a result of the event.
Solana developer jac0xb.sol tweeted that a link to a bankruptcy-related website has been added to the metadata of FTX-hosted NFTs. It was reported by jac0xb.sol that the FTX-created NFTs were hosted via a Web2 API that did not allow for the full display of pictures.
Upon the FTX exchange’s bankruptcy filing, the whole FTX.us domain was redirected to the bankruptcy proceedings website. As a result, those who have NFTs can feel free to keep referring to them. Images, however, remain invisible in any context, including whether they are listed on NFT trading platforms or accessible in wallets.
If you look at how FTX hosted their NFTs through a Web2 API service and called out collections that are still keeping data on Amazon Web Services, there is a “lesson to be learnt,” as Jac0xb.sol puts it. Several commenters have also voiced their disapproval of the Web3 industry’s reliance on centralized services like Amazon Web Services and the Google Cloud Platform.
The issue of the lack of NFTs on the blockchain was brought up by NFT executives on August 5. In an interview with Cointelegraph, Jonathan Victor, leader of Protocol Labs’ Web3 storage, and Alex Salnikov, co-founder of Rarible, said that the tokens are officially kept elsewhere. Data storage on a blockchain is more expensive, the two said, because primary chains often have restricted storage capacities.
The NFT industry is optimistic about the future of the region despite the challenges brought by the FTX disaster. On November 22, a number of participants in the NFT sector spoke with Cointelegraph, expressing optimism on the industry’s potential recovery. The CEOs emphasized the importance of the NFT community working to improve the use of their collections.
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