In this week’s newsletter, read about how nonfungible tokens (NFTs) hosted on the FTX exchange are now showing blank images. Check out how NFTs can solve diamond certification fraud and how the NFT space is held back by oversupply. In other news, find out how celebrities are facing a class-action lawsuit. And don’t forget this week’s Nifty News featuring classic media player Winamp adding support for NFTs.
NFTs minted on FTX break, highlighting Web2 hosting flaws
NFTs hosted on the embattled FTX exchange have been affected by the collapse of the organization. After FTX filed for bankruptcy, its FTX.US domain was redirected to a page giving details on bankruptcy proceedings.
Because of this, the NFT hosted within the platform are now showing blank images instead of their original artworks. Owners of the NFTs are still able to see that the NFTs exist. However, the images cannot be seen when listing the NFTs for sale or even within their wallets.
NFTs could help solve diamond certification fraud
As diamond certificate fraud becomes more common, some believe that NFTs can be a good solution to combat the issue. Speaking with Cointelegraph, Diamond Dawn founder Mike Moldawsky said that diamond certification reports should be placed on a public blockchain, ensuring that the documents cannot be tampered with.
According to Moldawsky, a diamond certificate running on the Ethereum blockchain will ensure immutability, proof-of-ownership and visibility for consumers and retailers.
NFT market held back by oversupply, greed and bad projects: Gary Vee
Social media guru and NFT supporter Gary Vaynerchuck recently argued that oversupply, short-term greed and subpar projects are the cause of the falling NFT market in the last year. According to Vaynerchuck, the demand for NFTs will not be able to keep up with the high supply.
Because of the “ridiculous amount” of NFTs being minted, Vaynerchuck said that it’s unlikely for the NFT space to have another market boom, similar to 2021….