– One man has created a 20TB repository of NFTs called ‘NFT Bay’.
– Hacker Uploads Every NFT to ‘NFT Bay’ to Prove a Point.
Non-fungible tokens (NFTs) are becoming more prevalent in the music industry. Many platforms are offering to sell artwork, tickets, and more as NFTs. However, is this really an NFT? and is buying a digital piece of a blockchain really proves ownership when anyone can ‘right click’ and save the picture/video/artwork?
Geoffrey Huntley, an Australian programmer, went on the heist of NFTs to download 20TBs of NFTs on the Ethereum and Solana blockchains. Huntley informed the gaming blog Kotaku that the ‘NFT Bay’, modeled after the infamous Pirate Bay, is an experiment designed to teach the public about what these decentralized networks are.
Are NFTs a Scam?
Huntley explains that he hopes that people learn to understand what people are buying when purchasing NFT art. According to Huntley, the NFT is just a set of instructions that people are required to follow in order to access or download an image. He also warns that the images are not stored on the blockchain and the majority of NFT images are hosted on web 2.0 storage and are not worth much.
With the NFT, the holder of an NFT for an artwork is like owning a certificate of authenticity. When the ‘golden ticket’ owners of the NFT sold by Kings of Leon show up for a concert, their status will be verified using that NFT. However, skeptics believe that digital tokens are not capable of being authenticated, i.e. the digital identifiers they claim to be.
According to computer scientist Antsstyle, NFTs are only valuable to individuals who use them for money laundering, tax evasion scheme, and greater investment fraud. There is zero value to NFTs. Their sole goal is to create artificial scarcity of an artwork to supposedly increase its value.
That assessment is the core argument as to whether NFTs are a scam or not.
If concert organizers are distributing tickets using the blockchain and ‘golden ticket’ owners can resell their rights using NFTs: is it considered useless? It’s already being done for future Kings of Leon concerts and ties a physical experience to the holder of that specific NFT. Those NFTs lose value eventually; Kings of Leon won’t be performing on tour forever.
If you are interested in learning more about NFT License Agreements or require legal assistance in connection with preparing your customized NFT license agreement, feel free to reach out to us and our expert attorneys will contact you in no time!
Note that the information mentioned in this article is not a substitute for obtaining legal advice from an attorney. Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice and the knowledge of an experienced attorney.
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