Category: News

The NFT market is certainly a complex one. From speculation about asset price and rarity to getting the most benefit from NFTs, consumers are always having to navigate its murky waters. Luckily, there are a plethora of tools, from market aggregators to pricing resources that make this journey easier.

Sadly, the industry has taken a blow as one of its most popular resources, NFT Inspect has announced that it is shutting down. The NFT research tool announced on January 3, 2023, that it would be closing down on January 17, 2023. 

Why NFT Inspect is Shutting Down

Many in the industry would recognise NFT Inspect as a helpful market research tool. Essentially, it would allow users to determine the NFTs used in the profile pictures of popular Twitter users. This would give others an idea of how popular it was and the online community behind it. Beyond that, NFT Inspect would provide vital information such as asset’s sales, rarity, and traits which would enable more informed decision-making.

As such, it is truly a tragedy that it is shutting down. In a Twitter thread, NFT Inspect gave some information about why it is closing both its Chrome extension and its website. From all indications, this is due to the current market conditions which have been ongoing since last year. 

“After months of working and reworking, we’ve come to the difficult conclusion that we cannot maintain Inspect going forward. We want to sincerely thank each and every one of you for your support over the rollercoaster of this last year,” the thread said. 

As many of us know, the crypto winter has meant that many collections have stalled in terms of floor price and trading volume and naturally, various projects within the NFT space were affected. But despite folding up, NFT Inspect did reminisce fondly about its achievements. 

These included bringing together over a thousand communities and generating over 175,000 NFT connections. But beyond these metrics, NFT Inspect pointed out how it created ways to assess the value of NFTs, especially the ones that focused on the communities behind them. 

As it folds up, NFT Inspect also gave some information to current users about how to proceed. 

“Over the next few days, we will be sending out full refunds to any recently onboarded collections that have yet to receive a full month of service. No action is required and more details will be provided shortly,” the thread said. 

Tools of the Trade

Following this announcement, many took to social media to share stories of how NFT Inspect had helped them in dealing with NFTs and there was a general outpouring of appreciation for the team behind it. 

This goes to show the non-monetary effects of the crypto winter in that a tool that brought together communities and offered invaluable help to many is no more. At the same time, Stefan Mai and Evan King, the founders of the tool, have promised to ‘keep on building’ and invited fans to follow their progress. 

One of the interesting things about NFT scams and hacks is that they do not discriminate in whom they target. We’ve all seen everyday people being targeted by spammy ads and messages on social media. We have also seen several examples of high-profile projects and people having their assets stolen such as Seth Green in 2022. 

But one of the latest hack announcements comes from RTFKT COO Nikhil Gopalani. As many NFT enthusiasts will know,  RTFKT is the NFT sneaker company acquired by Nike in 2021 as part of its efforts to enter the NFT market. 

Details About the Theft 

This incident allegedly took place on January 2, 2022, as Gopalani revealed on his official Twitter account. Prior to this, he had an impressive collection of Clone X NFTs and others that have now been stolen and sold. 

This was done through a phishing scheme by a hacker who had the same phone number as his Apple ID and this is how they were able to gain access to the funds. 

“Hey Clone X community – I was hacked by a clever Phisher (same phone # as apple ID) & sold all my clone x / some other nfts… Obviously pretty upset and hurt by this and I havent really been able to move all day. Hope people who bought my clones love them (being positive),” he said. 

As per current data, 19 CloneX NFTs,  11 CryptoKicks, 18 RTKFT Space Pods, 17 Loot Pods, and others were taken. Even the project he is at the helm of was not spared as  19 RTFKT Animus Eggs were stolen. Currently, the value of the loss is calculated at over $173,000 and both Gopalani and internet users have been at work tracking down the assets. 

The hacker was quick to offload the NFTs and some of the buyers have already been identified. One of them, who goes by the name lyx.eth on Twitter, was alerted of the status of the assets that they had bought and said that they didn’t know that they were stolen when they were purchased. 

“I’ve been talking with some people from RTFKT but I need to think about what to do,” they said in a statement to Decrypt, noting that they are considering their options on what they will do with the assets now. 

NFT Security 

Last year was filled with stories of people who had their NFTs stolen in a number of ways and now that we are in the new year, it is clear that these attacks will not stop. 

As such, it is important that all NFT holders, regardless of the value of their assets, take steps to protect themselves. This was reiterated in the responses to the Twitter thread, with one user even tagging  RTFKT CTO Samuel Cardillo for security advice. 

His response was that users should be careful in divulging information such as passwords and private keys to anyone claiming to be a representative of companies such as Apple or Microsoft. 

As any NFT lover will tell you, the people behind an NFT project are just as important, if not more, as the project itself. Their actions, whether positive or negative, can go on to influence the future of the project and all those who invest in it.

Currently, fans of the NFT project the Gobblers have been whipped into a frenzy as its founder, popular streamer DNP3, has admitted that he fell into a gaming habit and lost all of his money, including the funds trusted to him by his investors. This was announced in a post on the site TwitLonger on December 3, 2022.

Where’s the Money?

Setting the scene for the announcement, DNP3 noted that this was one of the toughest messages he has ever had to send. He then said over the last year, he fell into a gambling addiction. This addiction, he explains, affected both his personal and professional life and all the funds he had access to went towards this. 

“Every dollar I could find I would put into Stake in hopes of winning big. Even when the big wins did happen it wasn’t enough. Eventually I lost everything. In addition to my own life savings, I also irresponsibly used investor funds to try and “get my money back” from the casino which was wrong for so many reasons,” he said in the post. 

The admission of using business funds for his habit is practically every investor’s worst nightmare come true. Those in the NFT space are constantly on the lookout for any signs of foul play on the part of project founders as these could have disastrous consequences. Projects within and outside of the NFT space have folded up because of the gambling habits of their founders and sadly, this has happened again. 

And for DNP3, this loss is both personal and professional as the funds gambled away were both his personal savings and company funds. 

“There aren’t words to describe the level of shame & guilt I feel. I can no longer live in this dark world and this is my attempt to break free. I am now completely broke both financially and spiritually. My sense of trust in myself is compromised,” the post said. 

The Way Forward 

Following this announcement, the market cap of the Goobers took a dip and so did other projects that DNP3 is attached to such as CluCoin. This is to be expected as investor confidence will be low, as well as concern about what this means for these projects moving forward.

But DNP3 did give investors some hope in the message, stating that he will work towards personal recovery and securing a future for the various projects that he is a part of.

“I’m working with a help group to start the path to recovery. I will create a separate tweet which will have next steps for each projects I was involved with including CLU, Xenia, Gridcraft & Goobers,” the post said, with some more apologies. 

Last year was an interesting period for NFTs in the mainstream gaming community. From GameStop to Square Enix, many of the big names in the gaming sector endorsed these assets. At the same time, there was some pushback from fans and even some projects that led many to question the future of NFTs in the space. 

As we begin 2023, we can be sure that NFTs still have a place at least in the Square Enix ecosystem. This comes as the company has released its annual New Year’s Letter from its president which reinforces its NFT commitment. 

Square Enis Sticking to NFTs

One thing to note about the New Year’s Letter is that it offers a sneak peek at what the year will have to offer. And as this year’s letter shows us, blockchain and NFT gaming are at the top of the priority list. 

“In terms of new business domains, we named three focus investment fields under our medium-term business plan. Among those, we are most focused on blockchain entertainment, to which we have devoted aggressive investment and business development efforts,” the letter said, noting that 2022 saw a boom in blockchain visibility, especially when related to web3. 

It was stated, however, that the industry also faces some setbacks, notably the FTX collapse and the volatility of the market. But all these do not seem to have phased the company as it says that blockchain is becoming more of a part of people’s lives as it rides out societal changes. 

Furthermore, the letter notes that while in 2021, the blockchain gaming sector was overrun by speculative investors, the crypto winter has meant that those within it have to take a more grounded look at the technology behind it. Rather than seeing it as a means to an end (to make money), more are being forced to see it as a means to an end of giving customers exciting experiences, which is ultimately a good thing. 

As such, rather than divesting from blockchain and NFTs, in 2023 because of the winter, Square Enix is going full-speed ahead. 

“Our Group has multiple blockchain games based on original IPs under development, some of which we announced last year, and we are undertaking preparations that will enable us to unveil even more titles this year. We are also engaged in global sourcing from an investment perspective and will continue to take stakes in promising businesses whether we find them in Japan or abroad. Blockchain has been an object of exhilaration and a source of turmoil, but with that in the rearview mirror, we hope that blockchain games will transition to a new stage of growth in 2023,” the letter concludes.

NFTs in 2023

There you have it. From all indications, blockchain and NFTs will continue to have a place within the Square Enix ecosystem come 2023. And while the industry is clearly still navigating some existing challenges, the company has no plans of ceasing its efforts. 

When it comes to NFTs, there are certain celebrities that are known to be heavily involved in the industry. These include the likes of Snoop Dogg, Madonna, and, of course, Steve Aoki. Ever the multitasker, the popular DJ has bought into and collaborated with several NFT collections over the years, earning himself the reputation as one of the space’s biggest celebrity ambassadors. 

Now, it appears that Aoki is offloading his digital asset stash. This comes as, over the last few weeks, he has listed dozens of his previously-held NFTs for sale on OpenSea. 

Is Aoki Dumping NFTs?

A quick look at his OpenSea profile will show you that his NFT collection is very extensive. From Toy Boogers to Sad Girls Club to Goblintwon, he has certainly collected some choice NFTs over the years.

Now, he is selling off many of these, though the reason is not known. He hasn’t made any public statement about why he is offloading his collection and this has allowed for some rumours to spread in NFT circles. One of these rumours is that Aoki is selling off NFTs that he does not believe will be profitable moving forward. 

It is no secret that the industry had a difficult 2022 and even the blue-chip collections saw their price floors affected. But then again, many were quick to point out that while Aoki is selling off assets from smaller collections, His Azukis and Bored Ape NFTs have not been listed for sale. 

This can be seen as Aoki playing it safe by holding to the blue-chip tokens or him believing that the collections he is divesting from will not regain their value. Since the crypto winter hit, there has been speculation about which collection will bounce back the fastest and the consensus seems to be that the top tokens will recover first. 

At the same time, NFT critics have taken this as a sign of the industry finally declining. After all, if a vocal crypto lover like Steve Aoki is selling off his assets, surely that means that the industry is done? This, however, has been countered by NFT users online who, again, point out that Aoki is not selling off all of his NFTs but a handful of them.

Finally, some users online poked fun at the alleged Aoki NFT ‘curse’. This is an NFT urban legend that claims that any NFT project that Aoki gets involves with ultimately sees a decline. Some users, in light of his selloffs, are speculating that these collections are ‘freed’ from the curse. 

Why the Selloffs?

Late 2022 and early 2023 have had the topic of selling off NFTs come up quite a bit. Whether this is people choosing not to wait out the crypto winter or for some other reason, there has been talk about NFT selloffs and even a new business helping former NFTs get tax breaks for their assets. 

As the year progresses, it will be interesting to see if this narrative remains. 

Earlier this year, news broke about Nemus, a company that claimed to help conserve the Amazon rainforest through NFTs. How this worked is that customers would buy plots of land in the Amazon rainforest represented by NFTs and the funds raised would then be used to conserve the real-life plot of land. 

Now, months later, a judge has ruled that Nemus should stop this NFT initiative as it infringes on the rights of the indigenous people who own it. This comes after much dispute and accusations of exploitation by representatives of the Apurinã tribe. 

All About the Dispute

On paper, Nemus’ initiative seems foolproof; it allows people to buy NFTs while supporting a good cause and also protects the environment. But beneath all of this was an underlying issue, which was that Nemus might not have had the legal rights to the land they were claiming to conserve.

In court, the company was accused of convincing the indigenous people to endorse land contracts they did not understand. 

“People from the company delivered a sign to the villages, written in English, and asked the indigenous people, who can barely read, to sign documents without clarifying the content or providing a copy,” a court document said at the time, claiming that Nemus’ activities were in violation of Convention no. 169 of the International Labour Organisation (ILO). 

This convention essentially protects the lands of the Seruini River region and Pauini and maintains the rights of the indigenous people within it. This then led to a dispute about the ownership of the land and after Nemus claimed that it had permission from the indigenous affairs agency to operate on the land, it was asked for proof of this ownership.

After much back and forth over the months, prosecutors have formally told Nemus to stop selling their NFTs or engaging in any activities on the land. Doing so would be in violation of the UN Indigenous Rights Convention, prosecutors say. Furthermore, the company was given 10 days to outline its compliance measures to a court or risk facing more legal action. According to Flavio de Mira Penna, the founder of Nemus, the company will be complying with these requirements and has already stopped selling NFTs and does not plan to do so until at least around the second half of 2023.

But that doesn’t mean the end of all its ventures, however, as Penna has said that he is hoping to re-enter into dialogue with the Apurinã people at some point. It should be noted that there is an existing UN convention that specifies how such dialogue should take place. 

A Complicated Situation

While Nemus might have had good intentions, this shows the complicated side of selling NFTs based on real-life assets. The entire case has brought up the topic of land rights, the rights of indigenous people, and how NFTs based on these should be treated. And depending on how the dialogue between Nemus and the Apurinã people goes, there might be more to come.

We’re still in the holiday season and this is traditionally a time for individuals and institutions to do as much good as they can. From raising funds for charities to handing out food to the less privileged, we have seen many people doing good.

KIA, a popular car manufacturer, is also spreading some of this cheer to shelter dogs and is using NFTs to do so. As per a recent press release, KIA has raised about $100,000 from the sale of its robot puppy NFTs, and these are being used to find homes for shelter dogs.

A Home Through NFTs

This initiative is part of a year-long partnership that KIA has with the Petfinder Foundation, which helps shelter dogs find permanent homes. This partnership saw the automaker donate $500,000 to the Foundation as it launched its Superbowl ads back in February which featured the ‘Robo Dog’. 

The Robo Dog then entered the metaverse, with NFTs made of the virtual canine. 10,000 of these NFTs were initially given away for free and then another 10,000 were sold. 90% of the primary sales proceeds and 10% of secondary sales proceeds were given to the Petfinder Foundation and this has been calculated at $100,000. 

These funds, the release said, will be going towards providing homes for the dogs.

“Kia is dedicated to giving back and helping more than 22,000 shelter animals find new homes is proof that initiatives like this work and improve local communities, in this instance by easing the burden of overcrowding on local animal shelters nationwide,” said Russell Wager, vice president, marketing, Kia America.

Over the last year especially, there has been a growing trend of corporations leveraging NFTs to raise money for good causes. This is because NFTs have a number of benefits that make them compatible with fundraising efforts. First, they are relatively easy to buy over the internet and can be used to deliver benefits to consumers. Then there is the issue of royalties. While they have been hotly debated this year, NFT royalties allow for a passive and permanent form of income. And, when applied to charity endeavours, they can provide constant donations.

The Petfinder Foundation, on its part, has expressed gratitude for this initiative. 

“We are so honored to partner with Kia America. Their generous donation helped countless animals find loving and forever homes in 2022,” said Toni Morgan, Executive Director of The Petfinder Foundation.

NFTs in Charity 

Corporations have been engaging in charity initiatives for decades and these are not stopping anytime soon. What will be changing, however, is the ways through which funds are raised for these endeavours. 

NFTs have proven to be a useful tool for this purpose and we can expect to see even more of them in the corporate world moving forward. This year, it was brands like Pepsi, KIA, and HUGO BOSS and by next year, we will likely see a new crop of companies doing the same.

If you keep up with blockchain news, you’ll know that cryptocurrency and NFTs are very closely intertwined. Both are blockchain-based assets, NFTs are typically purchased with cryptocurrency, and the developments that happen within the crypto industry almost inevitably trickle down to the NFT space as well. 

But according to Devin Finzer, the CEO of OpenSea, this may not always be the case. In a statement to the Financial Times, Finzer has said that while the current state of the crypto market has affected NFTs, they could very well evolve past cryptos and thrive regardless. 

NFTs and Crypto

It is no secret that the rise of NFTs was partially predated by the rise of cryptos as a whole. The public had already had years of getting used to digital assets via cryptos before NFTs came on the scene. But while they have had a good run, Finzer believes that we might be paying for NFTs using fiat moving forward. 

“It is not necessarily the case that NFTs will always be bought and sold denominated in cryptocurrency as they are today. There are a variety of reasons why that makes sense in the current ecosystem, but as we get broader and more accessible, there is no reason that NFTs could not at least be denominated in US dollars,” he said.

He also noted that NFTs have certainly been affected by the ongoing crypto winter and predicts that it will have a ‘prolonged downturn’ which will leave OpenSea with about 300 employees. He clarified that OpenSea, which is backed by such companies as Coatue and Andreessen Horowitz, is prepared to ride out the current situation. 

Finzer also touched on NFT-focused regulations. Around the world, more regulations are being put in place to oversee the NFT space and while Finzer is in support of these, he once again emphasized that the crypto and NFT spaces are different and should not have laws blanket-applied to both.

“It is really important that regulators and government officials understand that this is not the same as the broader crypto industry where there is a lot of focus around financial use cases,” he said. 

Overall, Finzer appears to be positive about the future of the NFT space, current issues aside. He noted that people are engaging more with NFTs inside of their homes and that hopefully, more people will do the same over time. 

Should NFTs be Separate From Crypto?

On a smart contract level, NFTs cannot be divorced from cryptos, given that they are both based on blockchain. But Finzer has a point in that people can, in the future, pay for NFTs with cryptocurrency. 

This would also mean that NFTs will not be as affected by the state of the crypto market and can also be targeted towards a wider market. After all, there are people who are interested in NFTs but not necessarily crypto. Regardless of how soon NFTs are separated from crypto, if at all, Finzer seems confident of its future.

Even among non-car enthusiasts, Rolls Royce remains one of the most well-known car manufacturers in the world, with its iconic cars remaining at the top of many a wish list. But while Rolls Royce has been an international symbol of luxury for decades, it is firmly entering the modern world.

Case in point, the company has launched its Phantom Extended Series II ‘The Six Elements’, which is the latest line of its iconic Phantom cars. But unlike anything that we have seen before, these cars all come paired with NFTs and were unveiled at an event in Dubai, UAE.

Details About the New Launch 

Like all cars that are released by Rolls Royce, the Six Elements cars are very intricately designed, featuring hand-painted artwork by British artist Sacha Jafri. The artist also designed the NFTs which accompany each car and which are to be sold at a separate auction. However, each car will come with a scannable QR code that lets the owner view their NFT at any time.

The NFTs remain on theme with the cars themselves and are based on six elements;  Earth, Water, Fire, Wind, and Air, with humanity serving as the sixth and is a reference to Jafri’s ‘The Journey of Humanity’ piece. And this is not the first time that Jafri is working on NFTs. In fact, he currently holds the record for the most open-edition NFTs sold in under a minute for his ‘On the Wings of an Angel’ work which went live in July of 2021.

And as Rolls Royce pursues this NFT venture, it is also making an effort to give back, dubbing the cars, ‘The Rolls-Royce that keeps on giving.’ As such, both the gas fees and all the royalties fees for the NFTs will be donated towards charity. 

Rolls Royce has selected Bait El Baraka, The Beekeepers Foundation, Surgeons For Little Lives, and Harmony House as the charities to benefit from this initiative and these focus on the issues of equality, ​​education, health, and sustainability.

All in all, this initiative bridges the old with the new and offers fresh innovation while raising funds for good causes. 

As Jafri himself states, “Through my work, I aim to combine the power of art with a stripped-back essence of expression, love, empathy, and intention, to inspire a more conscious and intention-filled Humanity, striving for a reconnected world; reunited by the common goal of a more hopeful, sympathetic, sustainable and synergetic future for our planet.”

Luxury NFTs

As NFTs evolve, we are fast seeing the rise of luxury digital assets, whether these are blue-chip assets like Bored Apes or NFTs released by luxury brands. As with the Phantom Extended Series II NFTs, their mere association with a luxury car maker makes them more ‘exclusive’ to consumers. 

And as more car makers like Ferrari have also gotten in on the NFT action, they are further solidified as potentially being a status symbol in themselves, just like a luxurious automobile might be.