|12/27/2021||NFT lookup tool failed 100% of the time|
|12/13/2021||NFT Owner's Typo Costs $297k|
|12/12/2021||Kosha Dillz NFTs are on OpenSea|
|12/09/2021||5 NFT-like things you may already own|
|11/11/2021||NTTs not NFTs will revolutionize lending|
NFTs Take NYC
NFT Raffle Winner Announcement
Ep 85 - Funder Updates, NFTs, and Broker Fair
The NFT Experience, Coinbase, Crypto Q&A - Ep 86
On October 20, deBanked published an ethereum NFT lookup tool where token owners could see their ERC-721 NFTs live on the blockchain.
Though the system was not heavily promoted, deBanked conducted a survey of people that had attempted to use it and learned that over a one-week period of time, none of those surveyed had successfully been able to render their image.
Confusion about blockchains was the number one issue encountered. Users attempted to enter Binance Smart Chain addresses or other types of addresses that were not immediately recognizable, for example.
The difference between a collection ID # and a token ID # were not immediately discernible. For example, if an artist said “this is item #55 in my collection,” that might have nothing to do with the blockchain. Item #55 might be Token ID #1822318021 or something along those lines of coding.
One of the most popular topics on Reddit regarding NFTs is people not knowing how to find them. Buyers unable to “see” their NFTs in a wallet app or OpenSea, for example, could incorrectly draw the conclusion that their NFT is lost or stolen.
On ethereum, anyone can examine the contents of an ethereum wallet using Etherscan. If the token is still attached to one’s wallet, that’s great news. If it’s an ERC-721 token for an image, simply take note of the token ID # and the wallet address and then go back here and try again to see it. Good luck!
It seems the only thing blockchain technology can’t promise is a solution to human error.
The owner of an NFT Bored Ape Yacht Club #3547 got their decimals mixed up on Saturday when they sold the token for 0.75 eth, or 1% of its market value, by mistake. In an attempt to sell the token for 75 eth, or $300,000, the NFT was sold in error to an automated buyer in a call option-like purchase for $3,066, according to CNET.
After the purchase, the buyer dumped ten times the amount paid for the NFT into gas fees to process the transaction instantaneously, a move that prevented any chance of the error being remedied.
“How’d it happen? A lapse of concentration I guess,” the seller of Bored Ape #3547 told CNET. “I list a lot of items every day and just wasn’t paying attention properly. I instantly saw the error as my finger clicked the mouse but a bot sent a transaction with over 8 eth [$34,000] of gas fees so it was instantly sniped before I could click cancel, and just like that, $250k was gone.”
Members of the NFT legal community spoke to deBanked about how this type of stuff is all too common and unfortunate, but just comes with the territory of an unregulated financial space.
“It’s a pretty typical problem here in the Wild West,” said Jacob Martin, an attorney specializing in NFTs and author of the NFT Tax Guide. “It’s user error, not platform error. It sucks, but it is what it is.”
The Bored Ape NFT collection is one of the most sought after collections on the blockchain, with entry level tokens being worth about $200,000. While this error may have been able to be fixed in the world of traditional finance, the unforgiving nature of the blockchain world allows errors like this to be cashed in on by opportunistic purchasers.
Back in August, another Bored Ape was accidentally sold for $26,000. When the seller offered the purchaser almost double that to return the NFT, the new purchaser flipped the token to another user for $150,000.
In November, Cryptopunk #7557 which at the time was worth $19 million, was accidentally listed for $19,000. It immediately sold without remedy for the error.
When asked if regulation would help remedy errors like this in the future, some NFT legal gurus were weary about turning to government for solutions to user-committed blockchain errors.
“I don’t think it’s about regulation, it’s about education,” Shekinah Apedo, an attorney who serves as a Compliance SARs Analyst for Bittrex and NFT legal consultant to numerous companies, told deBanked. “The point of decentralization is that there’s no middleman or institution to run to when an error occurs, like one may do with a typo during a bank transaction. Education is necessary and warnings involving risk should be made known.”
“Cigarettes are legal but they are required to have warning labels,” Apedo continued. “Perhaps, regulation involving warning labels or advertising the risks of being your own bank as an NFT and crypto trader or investor would be good for the mainstream public.”
Do you own an NFT? Believe it or not, you probably already own something very similar. Value being predicated on tangibility is a thing of the past. Below are five things you probably own or want to own that are similar to NFTs.
1. Followers on Social Media
Are you tracking the number of people looking at your Instagram stories? Trying to either get more followers or expand your online presence? These things are online assets that are intangible, only have value in the eyes of the beholder, and cannot be exchanged for an equal asset.
2. Twitter Verification
Do you have or desire to have a blue checkmark on Twitter? This is one of the most valuable assets of the internet, and can validate your online presence. With value only given and backed by those in the community, the blue check mark is the NFT of Twitter.
3. Video Game Products
Games like Call of Duty, Fortnite, and the 2K series offer all types of digital purchases that can enhance the game experience, so much so that those that spend real money on virtual items can have a competitive advantage. These can be bought with real cash, earned through gameplay, or traded for other in-game assets. If you have the best cards or coolest clothing on your virtual character, that earns players big time legitimacy in the gaming world.
4. Area Codes
In major cities like New York, area codes have a prestigious nature about them. Don’t be caught with a 845 or 201 area code if you’re trying to look like a legitimate New Yorker.
Much like digital art, some pieces are much more prestigious than others. Just like if I ask you if you’re iPhone or Android, I could ask you if you’re a Bored Ape or Cryptopunk. The blue messages that come with iMessaging are a big builder of iPhone’s value, and perception of its users, just like the value of the brands certain types of NFTs stem from. If your texts are green on IOS, many iPhone users will think differently of you. This same concept applies to the NFT sects.
Whether they’re the future billionaires building the new digital world, or young people with big ideas and crypto-induced riches, money-hungry twenty-somethings showed up in droves to the FTX Arena on Tuesday for what some called the biggest NFT event to ever take place in Miami.
“NFT’s are almost like a hyper version of insurance for authenticity,” said Casey Craig, Global Head of Communications at CoinDesk and speaker during the ‘Culture Converges with Blockchain and Fashion’ panel. Craig spoke about her personal thoughts on the value NFTs provide to everyone involved in NFT buying and selling processes.
“When you think of NFTs and how you authenticate something, and how they’re preserving that rarity, it’s such a game changer,” Craig said. “I think it’s super practical. I think we need this authentication and creativity. I think it will enable not only the creators, but the people that are purchasing these NFTs.”
Other attendees were focused on using the flamboyant nature of the NFT space to sell their projects to those attendees whose goal was to find their next big tokenized investment. An artist who goes by Oona was at the event to promote her NFT project, strutting around in an outfit that covered her in real cash from head to toe.
“I make video art, and for a long time galleries didn’t quite know how to add value to
or create a unified system of value,” said Oona. “I think a lot of artists like myself are coming to the NFT space because it’s finding a way [for artists] to not give up on their dreams yet, you can actually survive and make a living from art, and connect with others through it.”
Oona spoke on the art community’s history of attaching themselves to great innovations, and how blockchain technology is just another example of creators utilizing new ways to showcase their work. “NFTs are going to become a normal part of our lives and as per usual, artists have found it first.”
Other individuals in attendance were critical of the media’s take on NFTs, and how the press has built an outside perception of NFTs being of over-the-top art that has little tangible value. Raymond Chen, Community Manager of Nansen, a blockchain data management software tool, spoke on the media’s apparent naive perception of blockchain tech and how real world usage of the technology is more relatable to everyday people than most would think.
“The media’s perception of NFTs is some [nonsense] art that is worth like a hundred thousand dollars, it’s so insane. It’s not just some JPEG on the internet, there is real utility value behind it.”
Chen spoke extensively about the value blockchain tech has for everyday consumers. “If you NFT your house, you can bypass a selling agent, buyer agent, and just cut out the middleman for these things,” Chen said.
“If you NFT your car, you can cut out the middle men when you want to sell your car when it’s used. You’re going to get low balled at a dealership, they’re going to up-charge it, and sell it to someone else for more. If you sell peer-to-peer, you cut out all the middle men, and all this slippage and transaction fees in the middle.”
Those in the fintech-esque field are also taking an interest in the NFT space, like Adam Hanna of Circle Internet Financial; who was there representing a software that allows instant payouts of crypto to dollars, or vice versa, for businesses who wish to accept crypto style payments. Hanna spoke about the next great innovation in crypto, and how whoever can figure that out is in store to cash in at an astronomical level.
“I wish I knew,” said Hanna, when asked what that next big idea is. “The NFT space as a whole is something that is still so young, really, like it’s in the past couple of months that it really took off, it hasn’t even been a full year at this point. So it’s just seeing how it’s constantly evolving, what those next projects are, and how different companies are using their own platform, or other platforms, to really promote NFTs in a different way, that’s where it’s at.”
Notable attendees that deBanked bumped into included Miami Mayor Francis Suarez, child actor turned crypto-tycoon Brock Pierce, rapper Kosha Dillz, and UFC fighter Ali AlQaisi. Members of the Miami Dolphins and Los Angeles Sparks were also in attendance, signing NFT-inspired autographs.
Whether you buy into the hype or think it’s equally as ridiculous, the NFT community will continue to be the loudest, most animated, and exuberant group in the world of modern finance.
If NFTs can be used to capture a moment or experience, then there should be some already available to showcase the current state of the movement. Here are some that we have found:
If the attempted merger between PayPal and Pinterest left you scratching your head, a comment coming out of Coinbase CEO Brian Armstrong could offer another clue about the future of online photo sharing platforms.
“There was a question there about the social experience, and I think that’s something that Coinbase can bring to the table here,” Armstrong said during the company’s Q3 earnings call in regards to the upcoming release of their NFT platform. “You know, we’d like to make the Coinbase NFT a little bit more like, you know, Instagram as opposed to say an auction like eBay or something like that.”
Armstrong continued by saying that their NFT platform will allow people to follow their favorite artist and creators, while offering a “feed of content that is populated from those people you follow.”
“In addition, you can go in there and buy an NFT if you really like it and kind of showcase in your own social profile,” Armstrong said.
Coinbase was mostly mum about its crypto competitors except to say that “there are companies like PayPal and Square and Robinhood and traditional financial institutions who are entering and we believe that that’s a huge validation of the whole space.”
Rami Even-Esh, better known by his rap name Kosha Dillz, went viral last week after hip-hop artist Fat Joe joined him in his ritual of rapping for Knicks fans outside of Madison Square Garden before and after home games. When Fat Joe approached him while he was rapping, Even-Esh’s life changing moment spiraled into a world of opportunities. Now, he’s trying to turn a once in a lifetime experience, along with other highlights from his life, into NFTs.
Even-Esh spoke with deBanked at NFT.NYC on Wednesday about his performance at the event, after he just showed up and was given a stage—subsequently stealing the crowd away from the speaker’s showcase in the next room, and towards his crypto-inspired rhymes.
“Fat Joe heard me rapping on the beat, got on the mic, and tipped me twenty bucks,” said Even-Esh, when describing the incident he wishes to mint. “He got on the mic and spit a verse that I knew word for word, from Big L’s ‘Enemy’, it’s a very classic song. That went to one page, then it went to another page, and then that was it. Game over. You know, we probably hit about nine million views and now more people are posting it.”
After the iconic moment outside of Madison Square Garden, Even-Esh immediately hopped on a flight to Colorado to try and make another connection with Fat Joe during one of his shows there.
“I showed up on my own flight, and went there unannounced. Then he saw me, embraced me, there were bunch of cameras around us. Fat Joe sent his people to bring me backstage, they interviewed me, and then they said man, we’re going to put you on stage.”
Even-Esh has had impressive bouts in the music industry prior to this event, which are what he hopes to build upon when he mints NFTs out of his experiences. His website mentions collaborations with rappers like Matisyahu and Rza, and even a tour with Wu Tang Clan. According to Spotify, Kosha Dillz has almost 16,000 monthly listeners on their platform.
Even-Esh has long taken interest in the crypto space, and talked extensively about what NFTs and blockchain technology mean to communities like his who are trying to make a name for themselves while also trying to pay their bills.
“With NFTs, you can mint a moment. There’s so much stuff that happens. That could be a whole series of NFTs, moments that weren’t documented that offend people, or moments of people [that are] in trouble, that could be a thing,” said Even-Esh.
“Moments where great rap music happened but no one ever saw— these could be NFTs.”
Even-Esh appears to be hoping to turn these his minted life experiences into a revenue stream. He claims that all of the places he has been to along with the people he has met create value for potential buyers. “I’m looking to mint more of my experiences because I think my experiences are gold. I have golden life experience.”
Whether it is the NFTs or his music that takes off, the exposure that the moment with Fat Joe gave Even-Esh has set his life on a new path.
He shared his advice to others after appearing to be inspired by the publicity he has received. “Someone told me there’s a million dollars out there for everybody. You have to seek it, go out, and find it.”
The timetable on the minting of his experiences is still undetermined, but that is only because of the amount of attention he has gotten, and the more opportunities that have come his way.
“I’ve been approached by a lot of record deals. Lawyers, agents, major companies, you know that’s what I’m trying to do, investors to take my thing to the next level and sell my story. My job is to tell my story.”
I attended NFT.NYC in Times Square on Wednesday and was blown away by the amount of energy around not only NFTs, but blockchain technology. For the first time, people like street-artists and musicians who rarely take an interest in investing are now developing a liking to extremely niche, complex, and heavily unregulated investment platforms. In a mix of Silicon Valley tycoons and seemingly broke college students trying to make it big, I poked around NFT.NYC and tried to figure out how any of this stuff could be useful to the traditional financial world.
Here’s what I found.
-Blockchains Have Potential
In terms of record keeping, a blockchain’s ability to function as a ledger is the first thing that comes to mind in terms of real world practicality. There are companies out there that are attempting to put mortgages on the blockchain through things like NFTs, but no one at the event was talking about banking documentation. Things like loans, credit history, customer information, and merchant history all would thrive in an objective virtual record keeping database that could cut data processing and approval times into fractions of what they are now. Imagine having all of the information needed for a deal in one place, accessible by anyone that had the credentials to get it?
-These Companies want Cash
With the amount of money in the crypto world being thrown around, startups are popping up everywhere to try to get their piece of the action. With gaudiness and flamboyance being the marketing technique that’s dominating how these companies talk about what they do, it is clear that the key to starting a successful company in the crypto space is how quickly you can legitimize your company to your customers. If lenders are looking to expand their marketshare, this is the place to look. A lender, who will remain unnamed, was handing out business cards at the main showcase of NFT.NYC, and said “we are here looking for opportunities.” There is a huge potential for funding an entire industry in this space, and it seems as if lenders haven’t quite caught on yet.
-It’s marketed by Gen Z, but Operated by ex-Wall Street
The mix of people who work for these companies is interesting. Outside of the Gen Z people talking about the notion of monetizing art and creativity, it seems the X’s and O’s of the industry are being run by a large portion of former Wall Street people. I met former commodity traders, investment bankers, stockbrokers, and hedge fund people that left that world to get into crypto; and it seems like they’re the ones running the books of these companies.
-Learn what an NTT is
A non-transferable token is what one CEO told me will innovate the everyday processes of finance more than anything else in the crypto space. Although he described it as an up and coming, abstract part of blockchain technology, the individual said that these types of tokens give access to information on the blockchain on a one way-basis, primarily eliminating the ability for anyone to access personal information if stored on a blockchain. He said this is an extremely mind boggling topic for most, even in the crypto space, and is largely not talked about because of the complexity of its nature. As more people work with NTTs, this CEO claims that anyone in the field of moving, borrowing, or lending money in the future will be working with NTTs on a daily basis.
-Digital Art is Part of the Hype, the Value is in the Technology
When people hear NFT, they associate it with a JPEG of a funky design that can be purchased and viewed solely the internet. This is true, but will not be the future of this type of technology. The artists who are trying to promote digital arts via NFTs are there to profit off of the hype of the space. The idea of buying a virtual picture for half a million dollars, which actually happened at the event, is just a combination of the excitement around the industry, and it’s widespread financial boasting mentality. The concept of a fully independent, tamperproof form of virtual record keeping that can be used by financial companies to speed up everyday processes is where the ones who have the most knowledge about finance that work in the crypto space are keeping their focus.
Kosha Dillz NFTs...
if you're into nfts, we minted a few of kosha dillz's short performance at broker fair 2021. you can view them on opensea. https://opensea.io/assets?s...
current nft project. https://opensea.io/assets/0x495f947276749ce646f68ac8c248420045cb7b5e/72930811097532136429221531639238713268184691046177442250937...