Category: News

Within the NFT sector, there are few establishments more important than asset marketplaces. This is because they are the places where both buyers and sellers of NFTs come together to make trades. But even with their importance, they are not without controversy. 

Take OpenSea, one of the biggest NFT marketplaces in the world, which has recently become the subject of a lawsuit. This suit is coming from a former user Robbie Acres who claims that he was locked out of his account and also suffered a phishing attack while using the platform. 

OpenSea in Legal Trouble?

Speaking with Coinbase, Acres described his predicament and what had transpired between him and OpenSea. As he puts it, he lost some of his assets in a phishing scheme and immediately notified OpenSea.

Usually, a marketplace would offer support to the user in need but that was not the case with Acres. 

“They took over 48 hours to respond, by which time the stolen assets had been sold as the buyer significantly undervalued them in prioritizing pace over value,” he explains. 

To make matters worse, the marketplace reportedly locked his account in what they referred to as a bid to stop any more theft from taking place. But Acres has said that this was not the solution he wanted. To gain access to his account, Acres said that OpenSea required him to essentially perjure himself and he has not received any more help since then. 

He is now seeking legal action because, as he puts it, this incident cost him about $500,000 and OpenSea needs to be held accountable for it. Interestingly, his legal representation says that it has spoken to others who use OpenSea and noted that Acres’ experience is not uncommon.

“I have spoken with and represent several people who had their NFTs stolen or accounts compromised on the OpenSea marketplace. In some instances, OpenSea acknowledges its failures and makes the account owner whole. In others, OpenSea simply ignores the issue,” Enrico Schaefer, the head of Acres’ legal team says, adding that OpenSea has been more focused on its growth than the needs of its customers. 

This is a sticky situation because the responsibility for the loss of assets is an ongoing debate in the industry. Some argue that the responsibility lies solely on the asset owners while some believe that the marketplaces have some sort of duty of protection to their users. 

OpenSea itself was contacted about the issue and denied any wrongdoing. According to a representative, the theft took place outside of the platform and OpenSea was only notified after the assets had been sold. And after OpenSea had been notified, it disabled the account in a bid to stop any more activity. The statement also noted that the prevention of theft and resale was one of the most complex issues in the industry because of the many platforms involved. 

Now, both parties will likely have to plead their case in front of a judge.

One of the interesting applications for NFTs is their use as an access tool. As much as they are collectables and perhaps even speculative investments, they are often used to grant access to exclusive services, experiences, and products. We’ve seen NFTs be used, for example, as access tools for the Tribeca Film Festival and even Coachella. 

But what about NFTs that grant access to the bathroom? Yes, you read that right. New Orleans-based Web3 company NieuxCo has announced a new NFT collection that promises access to bathrooms during this year’s Mardi Gras.

Beating the Bathroom Rush

Mardi Gras is one of the most famous events in New Orleans and sees both locals and tourists congregate for culture and fun. And as anyone who has been to a large-scale event like this will tell you, getting access to a bathroom can be complicated and even expensive. 

But NieuxCo believes that it can solve this issue using NFTs. The company has developed a 5,000-piece NFT collection that is centred around Mardi Gras and promises perks for its holders. These assets (called 504 Founders NFTs) went for 0.1 ETH each and were sold out soon after they were launched. 

“Experience the magic of Mardi Gras like never before with the unique NFT collection created by the founding members of the Nieux Society in collaboration with an AI engine. These NFTs bring to life the 504 Founders’ vision of their own version of the iconic celebration, featuring elaborate floats, glittering costumes, and all the energy and excitement of Mardi Gras,” its website says. 

The company also offers its holders access to a web3 community and The Nieux on St. Charles Avenue in New Orleans during Mardi Gras. Through this, the company will give its holders access to exclusive parties, food, drinks, and of course, access to restrooms which is a prized commodity during these sorts of events. New Orleans sees millions of visitors each year and its appeal is partially based on events like Mardi Gras. 

And while the success of this project is obviously a benefit for the company, its management has said that it benefits the city as well.

“Nieux Society members used this cutting-edge technology to create a collective vision for Mardi Gras while utilizing NFT technology to provide holders exclusive access, benefits, and an ongoing invitation to join us on our journey to help New Orleans’ realize her full creative potential,” said Tim Williamson, Co-Founder and CEO of NieuxCo. 

The Role of NFTs in Access

NFTs have already proven that they can be used to offer access to experiences and services for users and from all indications, this will not be stopping anytime soon. 

And while the use of NFTs for granting access has not been without controversy (this is consistent with all things NFTs) we are likely going to see more of such initiatives moving forward, whether this is access to a top music festival or a simple bathroom at Mardi Gras.

As an NFT project, Doodles counts itself among some of the most successful in the industry. It raised hundreds of millions last year, has grossed millions in sales and has amassed a dedicated userbase since it first launched. But it seems that some big changes are coming to the NFT project moving forward. 

This comes as Doodles, which has famously existed on the Ethereum blockchain, has announced that its sequel project Doodles 2 will be coming to the Flow blockchain. This was confirmed in a January 25, 2023 social media post.

Doodles Making a Change

In its message to the community, Doodles noted that its goal for 2023 was to open new adventures and possibilities for the ecosystem and have it be open to even more people. 

“At their core, Doodles are designed to be digital identities – expressions of ourselves, or rather, how we see ourselves, as we travel the Internet, the blockchain, and daily life. We imagine bringing our Doodles with us to all of our important places, both online and in the physical world. Doodles don’t have limits, only possibilities,” the statement said. 

In this vein, Doodles has said that it wants to expand its franchise to include things like music, animation, consumer products, live events and so on. Given the scale of its ambitions, it will need a blockchain that is as accessible and easy to use as possible and this need was met by the Flow blockchain, especially as it proceeds with Doodles 2. 

The vision for Doodles 2 is for daily utility to be delivered to the community and Flow has proven to be the best option for this. This is thanks to its low gas fees and onboarding process which will be conducive for newcomers. From January 31, 2023, Doodles will be taking the first step towards introducing Doodles 2 to the world, along with a new feature called the Dooplicator.

More information will be provided over the next few days in the form of videos and illustrations but the Dooplicator will essentially be the means through which the first Doodles 2 wearables will be minted. Other milestones to look forward to will include the Genesis box launch a month later.

But even with all these, Doodles has made it clear that it will not be abandoning its Ethereum projects. 

“We will also be continuing to invest in our ecosystem on Ethereum. The original collection of Doodles, Space Doodles, The Dooplicator, the DoodleBank and other unannounced

experiences are core elements of our roadmap. Things like expanded licensing opportunities and the highest tier of access within the Doodles ecosystem will always live with the original

Doodles Collection. The future is multi-chain. Wherever you are, Doodles will meet you there,” the announcement says. 

Regardless of the changes that Doodles is making with regard to its blockchain, it is clear that the project is pursuing very high ambitions, many of which will come to light this year and will hopefully see more people enter its community.

These days, it is not unusual to hear of large mainstream companies releasing NFT collections. From iconic fashion houses to consumer brands to even automobile manufacturers, NFTs have entered the mainstream partially because of their associations with some of the best-known brands in the world. It is also not unheard of for these collections to be smashing successes that sell out while also being well-received by fans.

Unfortunately for Porsche, this has not been the case with its newest NFT drop. This collection, which is themed around its iconic 911 cars, was a trading flop and was also criticized by the NFT community. 

Porsche’s NFT Woes

The collection was released on January 23, 2023, and saw 7,500 assets based on the 911 sports car released to the public. As part of the public mint, there are to be three phases in which buyers can get their hands on up to 3 of the assets each at a price of 0.911 ETH. 

Usually, this sort of rollout would lead to massive fanfare and tend to be sold out soon after they have been released. Even on its social media, Porsche seemed to anticipate a positive market response. 

“How to mint your Porsche 911? ​Mint starts soon. First things first, make sure you are registered on our official website http://nft.porsche.com. Once the time for your Mintwave has come, you have 1 hour. If you miss it, you will have to wait until the mint goes public,” an earlier tweet from the company said, referring to its initial allowlist.

But once they hit the market, the assets did not sell out but fell flat. Despite 7,500 being listed for sale, less than 1,500 were sold within the first 24 hours of their release. And things were even gloomier on the secondary market. When these sorts of NFTs are launched, collectors often rush to snap them up so they can be resold on the secondary market for several times the initial cost. But secondary market sales have been dismal so far, falling below the 0.911 ETH price floor in less than 24 hours, which signals a lack of interest from the wider public. This is especially jarring given how much hype there was leading up to the project’s release. 

What Went Wrong?

This NFT rollout is certainly one of the less successful examples of corporate NFT projects thus far but why? Many online accused Porsche of not properly connecting with the NFT community and gaining its trust. Notably, there was no Discord channel for the collection, which is unusual given how popular Discord is with NFT lovers. 

Others noted the hefty price tag that accompanied the NFTs as 0.911 ETH (another nod to the classic car) comes to over a thousand dollars and while Porsche teased some perks that come along with the assets, this was clearly not enough. Finally, some speculated that Porsche should have employed the services of a web3 firm in its rollout.

The crypto winter has been upon us for a while now and the result of this is that investor confidence has been rocked. Between the tokens and NFTs that have lost some of their value to the companies that have been forced to fire staff, it is easy to imagine an air of pessimism hangs over the industry. 

But that might not necessarily be the case. A new report from CoinWire was released following a poll of 10,000 industry participants. The results, surprisingly, show that many remain optimistic about the future of the industry despite the current challenges.

Hope on the Horizon

A look at NFT-related headlines might have you thinking that traders have lost faith in the industry. But as per CoinWire’s survey, 4 out of 5 NFT investors continue to have faith in the industry despite the ongoing struggles. In fact, the NFT market has continued to grow even in spite of it. 

The report shows that the value of the NFT market has jumped 122 times to $12.2 billion since 2020. The number of NFT holders has also increased from 1.5 million to 3.7 million, representing a growth of 250%. This would make sense given the fact that so many NFT marketplaces, platforms, and resources have popped up in the last year especially. This, combined with the heightened visibility of the industry and the acceptance of NFTs by corporate brands, means that more people will be curious about NFTs and will likely buy them.

The report also shed some light on what exactly people are buying NFTs for. As per the report, 75% of people who buy NFTs do so to hold them as collectables, while domain names and gaming are also popular. This shows the growing utility of NFTs as beyond speculative profit-making, they have also found use among gamers and those who buy them for sentimental value. 

But this has not gone off without a hitch as some gaming companies have shown reluctance towards NFTs. 

“Risk of speculation is believed to be the main reason why traditional gaming companies reject blockchain and NFT, according to 78% of investors,” the report said, adding that, “67% of worldwide investors anticipate that traditional game publishers will be highly interested in Web3 gaming in the future.”

We’ve seen this sort of rhetoric floating about with Minecraft famously banning NFTs from its servers in a bid to crack down on speculative NFTs and many gaming NFT projects seeing pushback and mockery from fans.

In terms of franchises that have gotten into NFTs, the last year has seen some impressive drops such as Game of Thrones, Stranger Things, and so on. If more of these embrace NFTs, we could see even more of these sorts of numbers. But even as the NFT market is thriving, things are not equal and some projects are more popular than others. Notably, Yuga Labs dominated the industry, taking the top 3 best-selling NFT spots. 

It’s hard being the owner of a Bored Ape NFT. On the one hand, you have enough money to purchase some of the most expensive digital assets in the world and can, in turn, monetise the NFTs in a plethora of ways. On the other hand, your assets are constantly targeted by thieves who want to steal and possibly resell them. 

This, unfortunately, seems to be the case with OpenSea as Bored Ape users have reported their stolen assets being listed on the marketplace. Interestingly, this comes after OpenSea had already put measures in place to stop stolen assets from being resold. 

The Case of the Stolen NFTs

This whole saga was exposed by an anonymous user named Franklin who is the sixth largest holder of Bored Apes in the world. As he explained, his stolen NFTs had been listed on OpenSea and sold to him despite OpenSea’s existing measures. 

Currently, OpenSea has a mechanism in place for users to report any listed assets as being stolen. When this is done, the asset cannot be sold on OpenSea while the report is under investigation by the moderation team. But Franklin has explained that scammers have found a loophole around it.

“It happened again – second time in a week someone has exploited OpenSea’s stolen ape policy to sell to my collection offer after it was already marked as “under review for suspicious activity” (yellow mark). They used a “Match Advanced Order” function to “Mint” and sell to me,” he said. 

It is interesting to note that this is the second time in a single week that this sort of thing is happening. Franklin had previously tweeted on January 20, 2023, that one of his NFTs that had already been reported as stolen was listed on OpenSea. He then paid 65 WETH (with OpenSea taking 1.625 WETH in fees) for the asset but due to it being flagged, he found himself unable to resell it. 

He went on to criticize OpenSea for its stolen assets reporting policy, saying that it had failed. 

“Hey @opensea can you PLEASE fix your stolen ape policy? This ape with a yellow caution mark sold to my OpenSea WETH offer for 65 WETH. You collected 1.625 WETH in fees, and I cannot resell this ape. It was already marked before the sale happened. You have failed with this policy,” he said at the time.

When this feature was first rolled out last year, many heralded it as a way to curb the theft and sale of stolen assets on the marketplace. Sadly, it seems that this feature still needs to be tweaked as some loopholes have been found and exploited by scammers. 

This incident shows that as long as valuable NFTs still exist, scammers will go after them and try to steal. But if the marketplaces where NFTs are listed can continue to improve on their flagging and reporting techniques, these issues could, one day, become a thing of the past. 

In terms of technology, there are two concepts that have become immensely popular in the last few years; Artificial Intelligence (AI) and Blockchain technology. Both have been touted as the future of technology but have also caused some division between those who support their use and others who are perhaps more cautious. 

Now, the two are being used in conjunction with each other as Polygon Labs has announced a new partnership with Alethea AI, an artificial intelligence company. This new partnership will see AI-based avatars not only developed on the Polygon blockchain but also leveraged and traded by users.

AI on Polygon 

These days, many of us would have seen the news of AI being able to create everything from text to art from scratch. This is a quality that has both fascinated and terrified the public but has shown immense potential. Now, Alethea AI will be bringing it to Polygon users by allowing them to create AI avatar characters. 

Within web3, many use avatars to interact with others and explore metaverses. Now, these avatars can be created with much more ease. According to Alethea AI, the avatars need only a single-line prompt in natural language to come to life. And once they are developed, they are fully intelligent and interactive. 

Alethea AI has also launched a D’app (based on Polygon, of course) where users can begin experimenting with the technology. To demonstrate the D’app’s capabilities, an AI avatar of Polygon co-founder Sandeep Nailwal was created, with lines from his interviews and public statements used as the basis. 

Nailwal also commented on the development, noting that he was impressed with what the team had done. 

“I have seen firsthand how Alethea AI has developed this technology over the last few years and through their CharacterGPT AI engine…We are excited to continue supporting Alethea as it builds on Polygon and to bring the power and potential of generative AI to the thriving ecosystem,” he said. 

Interestingly, the avatar comes with a checkmark which indicates that the avatar was made with his permission and this could be used in the future to combat any nefarious use of the technology. And according to Ahmad Matyana, the COO of Alethea AI, there is a multitude of potential applications for the technology. For example, he says, these avatars can act as AI companions and digital guides for users as they explore the digital landscape. 

When first getting into web3, users can find themselves feeling isolated but with this avatar, they essentially receive a friend that can act as a companion. For public figures, these avatars can act as a digital twin that can interact with their fans without as many limitations as them. 

AI Coming to Web3?

While this development is still new, it does show a lot of promise, especially given how popular AI is among consumers at the moment. If this takes off, we could see a host of AI-powered avatars in all corners of the web3 space moving forward.  

So far, we’ve seen the fashion industry’s burgeoning love affair with the NFT space, evidenced by the brands like Louis Vuitton and Prada that have launched NFT projects in recent times. Clearly, consumers have an appetite for fashion-themed NFTs but what about makeup? 

Yes, makeup. It seems we’re about to see the cosmetics sector get in on the action as well as NYX Makeup has announced its new web3 venture. The brand, which is under the L’oreal umbrella, will be launching a new DAO which will act as a beauty incubator, as well as a collection of NFTs. 

NYX Making its WEb3 Debut

NYX’s DAO will be called GORJS, and will also make history as the first beauty-focused DAO in the world. And its ambitions go beyond just creating a web3 presence for NYX.

“Developed by the NYX Professional Makeup brand of L’Oreal USA, Inc., and deployed on the Ethereum blockchain, GORJS will help to redefine what beauty will be in the metaverse and lead the cultural conversation as it relates to the values of diversity, inclusivity, and accessibility,” its about page says.

Given that it is a DAO, there is a lot of emphasis on the community behind GORJS and its members will be able to contribute to decision-making through governance tokens. In total, 100 million GORJS governance tokens will be issued and they will not be transferrable from users’ wallets. 

And besides voting rights, holders will also enjoy a daily yield and will be added to allow lists for future asset drops. And while there is the appeal of daily yield, the team has made it clear that the GORJS tokens are not an investment scheme. 

“The governance is truly meant to be a recommendation engine through relying on [tokens] that cannot be sold, and hence does not risk becoming a financial instrument,” said  Sandbox co-founder Sebastien Borget who is on the advisory board of the DAO. 

Besides the DAO, NYX will also be launching a 1,000-piece Ethereum-based NFT collection called the ‘FKWME Pass’. These NFTs will be released on February 1, 2023, and will command a price of 0.19 ETH each. 

Makeup in Web3

All these are part of the company’s efforts to not only establish itself in web3 but support creatives as well. NYX Global Brand President Yann Joffredo especially emphasised the goal of supporting 3D creators and giving them a leg up in web3.

As he explains, digital makeup can go far beyond the limitations of the physical and this gives creatives a chance to do things that they cannot in the material world. And given how popular the metaverse has also become, there will certainly be a market for digital makeup. 

Should this be successful, NYX could find itself at the forefront of a new makeup revolution and one that is not limited by borders as it was before. Now, only time will tell how this DAO and NFT rollout will be received by NYX’s customers and the beauty community at large.

In mid-2021, top crypto exchange Binance joined the NFT sector when it launched Binance NFT, its own marketplace. Since that time, the platform has been quite popular, even launching a staking program late last year. But now, it seems that Binance is tightening its requirements regarding what types of NFTs may be listed on its marketplace.

This comes via a January 19, 2023 announcement from the company which lays down new rules. These rules, which will be implemented from February 2, 2023, will see some existing assets delisted and current artists limited in the number of assets they can mint. 

Details About the Changes 

One of the interesting parts of this new development is the fact that NFTs listed before  Oct. 2, 2022, that do not have a daily trading volume exceeding $1,000 will be delisted. Users can still buy and trade these types of assets until February 1, 2023, and after the delisting date, the unsold ones will be returned to their creators’ wallets. 

Withdrawals of these assets will also be allowed while deposits will be strictly forbidden. This is clearly a move on Binance’s part to remove any assets that have been found to be underperforming while still giving creators and buyers a chance to ger their affairs in order before that time.

In the statement, it was noted that Binance is doing this, “To address feedback received about the NFT minting feature from our community, as well as to prevent the creation of low-quality NFTs and misuse of this feature.” 

Besides the delisting, there will also be a change in how many NFTs users are allowed to mint a day. As per Binance, verified users who have at least 2 followers on Binance can mint up to 5 NFTs per day. Verified, in this sense, refers to users who have completed the know-your-customer requirements and confirmed their identity. 

Binance also reinforced its commitment to listing only quality NFTs. As such, even those who meet the trading volume requirements will be subject to periodic reviews to make sure that they meet Binance’s standards. Users are also encouraged to report any NFTs that violate the terms of service to Binance’s moderation team. 

“If an NFT collection does not meet the standard we expect, Binance NFT may conduct a more in-depth review and potentially take the NFT collection down from Binance NFT Marketplace. We do this because we believe this helps to best protect users,” the announcement says.

Binance’s Quality Control

Overall, this seems to be quality control from Binance, which makes sense. As much as there are valuable and high-quality NFTs in the industry, there is also a plethora of low-effort assets that have flooded the market in an attempt to capitalize on the success of others. And given how much of a reputation Binance has, it would not want to be known as a site that lists bad NFTs. 

Hopefully, as these changes are implemented, they will lead to better outcomes for Binance NFT users.

One of the reasons why NFTs have taken off so much in the last few years is the opportunities that it offers to creatives and entertainers. We’ve seen artists make a living selling NFTs, musicians use them as a medium to connect to fans and special access given to buyers.

Adult entertainers are one type of entertainer we may not hear as much about when it comes to NFTs. But one of them, former adult film actress Elsa Jean, has recently revealed that she made $30,000 from selling NFTs and intends to continue operating in web3. 

NFTs in the Adult Industry 

Jean explained in a recent interview that she began exploring independent content creation after retiring from mainstream adult films over a year ago. She first opened an OnlyFans channel which saw her land within the top 1% of creators. But even with this, Jean wanted to explore more online options and began looking to NFTs in November 2022, and asked some friends for help. 

“I decided to launch my own NFTs to give my fans something that has value and that they could invest in that was different from my other content. I started by asking tech-savvy friends and people on Twitter for advice. My NFTs are limited and give my fans access to exclusive content. It also provides utility for them,” she says. 

Jean has also given some insight into the exclusive content offered by the NFTs such as virtual parties and voice notes. She also says that the nature of NFTs gives her more control over her content and the fact that some buyers will want to resell their assets means that they are less likely to illegally copy and share the content as it devalues what they already own. 

And her ventures have proven to be not only entertainment-based but educational as well. As Jean puts it, many of her fans had no understanding of web3 or NFTs and buying her content gave them a chance to learn, with Jean going as far as releasing tutorial videos on crypto wallet creation and NFT verification. 

And with the success that Jean has found with NFTs, she hopes that her web3 entrepreneurship will continue for a long time. And this is despite the ongoing crypto winter which Jean says she is not discouraged by. 

“I’m not really worried about the crypto recession. When things are low, it motivates me to work a little harder to turn things around. I don’t think NFTs are going to collapse. I think they are here to stay, and so am I. I’m pushing for NFTs and pushing them hard,” she says. 

This story shows the many ways that NFTs can be used. First, they have been proven to be a source of income for all sorts of creatives. But beyond just making money, the activities of entertainers in the NFT space can prompt their fans to learn about web3, which ultimately drives adoption.