06/04/2022 Alexander

PUFF PUFF and your ETH is gone! Aka. NFT

I spent some time recently on the NFT market, looking at this with my ‘compliance eye’. Let me tell you what I found out – and why it is very concerning and looks like a bobble. I looked at the platforms like Opensea, TerraVirtua, Rarible First of all, there is no KYC whatsoever! (looks like a fun place!) Interestingly enough Binance actually does require KYC to access their NFT market but their NFT market is almost dead! (do you think there is a connection?) I also check what you are actually buying. So I took a closer look at OpenSea and the first ‘art piece’ that I saw was: Puff, Puff, Pass, Created by popwonder.

These are the purchase details:

Contract Address 0x495f…7b5e

Token ID 1227188584282218…

Token Standard ERC-1155

Blockchain Ethereum

Metadata Frozen

The last part ‘Metadata’ is very important because it actually says what you are buying. When I clicked on this I got:

{“image_url”: “ipfs://bafybeif66updxh4jo4ccdh2kqa65ab4lamjwzm5r3d6ssz6bvyhwrnstpe/image”, “name”: “Puff, Puff, Pass”, “description”: “Spot me, I’m getting pretty high.nnCreated digitally to replicate traditional comic printing // 1 of 1 // 1985 X 1985 pixels  // PNG”

Puff, Puff, Pass

So let’s break it down:

“image_url”: [THIS IS WHAT YOU BUY]

“ipfs://”, [is the repository where you can find this picture I DON’T RECOMMEND CLICKING ON THIS BECAUSE IT MAY BE MALICIOUS]

Created digitally to replicate traditional comic printing // 1 of 1 //

and in what quality: 1985 X 1985 pixels  // PNG”} [These are you #copyrights]

So what you are actually buying is a TICKET to FIND where your PICTURE is potentially located. You need to locate it yourself and if you want [which I do not recommend] download it at your won risk!

The picture can be changed from the link, removed, many other people can also download it and use it.

It is all fun and games until it will all implode. But as my friend Mikko Ohtamaa say – this is all fixable and it is still better than ICO at the time!

However, be careful what you think you are buying and who you buy this from.

What risks do you see here? Am I overly concerned?  At the end you can have Puff, Puff, Pass for only 40,990 USD!