CoinMarketCap looks at the most exciting events in the NFT space — from OpenSea acquiring NFT aggregator Gem, to a smart contract error in the hyped Akutar NFT launch resulting in $34M locked
In another awry story, a hyped NFT launch hit the rocks over the weekend, with the creators being unable to access $34 million from the mint. The funds will remain locked forever due to a smart contract error.
Here’s a rundown of some of the top stories from the NFT space over the past week.
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Social NFTs Lead the NFT Market Recovery
Hackers Hijack Instagram Account of Bored Ape Yacht Club, Steals $2.8M Worth of NFTs
“There is no mint going on today. It looks like BAYC Instagram was hacked. Do not mint anything, click links, or link your wallet to anything.”
The hackers capitalized on the upcoming project to trick users. Those who clicked on the fake link were taken to a site where they could claim free NFT land for the upcoming Otherside metaverse. Users were urged to connect their Ethereum wallets even if they didn’t own a Bored Ape to claim the free airdrop. Those who did had their NFTs stolen.
“This morning our team was alerted that the Bored Ape Yacht Club’s official Instagram account was hacked. The hacker posted a fraudulent link to a copycat of the Bored Ape Yacht Club website, where a safeTransferFrom attack asked users to connect their MetaMask to the scammer’s wallet in order to participate in a fake airdrop,” Yuga Labs said in an official statement.
In the meantime, the company said that it was working to “establish contact with affected users.”
OpenSea Acquires Ethereum NFT Aggregator Gem
CEO and co-founder Devin Finzer said:
“As the NFT community grows, we’ve recognized a need to better serve more experienced, ‘pro’ users, and offer more flexibility and choice to people at every level of experience."
Despite the acquisition, Gem will continue to operate as an independent company, working on its own features and products. Surprisingly, Gem reportedly told investors that the acquisition was rather “unexpected” but would help accelerate its next stage of growth. Notably, the company will have access to OpenSea’s infrastructure, resources and distribution channels.
“During the course of our diligence, we learned about, and immediately surfaced, some deeply concerning allegations against a now-former member of Gem’s leadership team who operated under the pseudonym Neso. Upon investigating the allegations, the employee was immediately exited prior to the close of this deal. This individual has never and will never be affiliated with OpenSea.”
Highly-anticipated Ethereum NFT Launch Goes Sideways, Locking $34M
A smart contract error has left a hotly anticipated NFT launch scrambling for survival.
“Well, this was fun, had no intention of actually exploiting this lol. Otherwise, I wouldn't have used Coinbase. Once you guys publicly acknowledge that the exploit exists, I will remove the block immediately.”
Although the project began working again, another bug popped up, as explained by 0xInuarashi. Apparently, Aku developers coded the smart contract to allow bidders to receive a refund first before the team could make any withdrawals. The caveat was that a minimum number of bids had to be made before the team would be allowed to withdraw. This minimum number was set to be equal to the amount of NFTs available for auction, failing to account for multiple bids within the same transaction.
As expected, some buyers attempted to mint multiple NFTs within the same bid. This rather simple oversight meant that the terms of the smart contract were never fulfilled, resulting in locking away 11,539 ETH or about $34 million within the smart contract. Ultimately, Aku developers cannot withdraw any funds from the sale, and NFT owners who hold Akutar Mint Pass NFT cannot also receive the promised 0.5 ETH refunds.
“I completely own up to that. I'm unfortunately not a developer and spoke prematurely about what I understood wasn’t a problem but ended up being. I’m really really sorry.”
“The mistakes that were made are no more costly to anyone than myself. I’ve reinvested most everything into building Aku… Most everything will go back to refunds and we will keep building what we set out to do. Brick by brick.”
‘Project Iceman’ Turns to the NFT Community for Funding
Following the ease of raising funds from NFTs, a growing number of films are turning to NFT communities for capital. A new documentary following Anders Hofman's attempt to complete the first long-distance triathlon in Antarctica is looking to raise funds from NFT sales.
The project’s website states:
“Get access to 1 of 10,000 limited premiere tickets to the exclusive virtual world premiere of the Iceman film in July 2022 and 226 NFTs that include tickets to red carpet premieres, pre-access to future events and NFT drops, owning a part of the film, becoming a producer, and more."
The crowdfunding process has been categorized into four NFT tiers, with perks such as access to future events and NFT launches, access to physical premieres, and ownership of 10-second clips of the film.
UFC Fighter Nate Diaz Lashes Out at the UFC’s NFT Collection, Calls it ‘Bullshit’
While most creators and artists in the NFT space will do all they can to promote their project, Mixed Martial Arts and UFC icon Nate Diaz has thrown some heavy punches at a project featuring him.
The digital collectibles featured video files of moments from the Diaz brother's fights in the UFC, similar to NBA Top Shots, which highlights top moments from basketball.
"It helps with the healing process and inflammation, stuff like that. So you want to get these for before and after the fights, training. It'll make your life a better place."
In October 2016, the USADA issued a warning to Nate while Nick was fined and suspended for five years for testing positive for marijuana in 2015. However, the World Anti-Doping Agency (WADA) removed Cannabidiol, aka CBD, from its prohibited list in 2018.