NFT Ordinal Punks called “sketchy”
NFT Ordinal Punks called “sketchy”
A look into the world of Bitcoin NFT reveals inadequate infrastructure and strong FOMO, even for clone collections.
Cover/illustration via Cryptooshala
Anonymous twitter account TheNorwegian expressed concern about NFT Ordinal Punks, asking: “[is this] TBiggest NFT scam of all time?
Feb 9 Cryptooshala reported on the growing popularity of Ordinal Punks, including the sale of three NFTs, according to social media posts, including #94, which was reportedly sold for 9.5 bitcoins ($215,800).
The novelty of NFTs on the Bitcoin chain and its origin seems to be driving demand for these NFTs. However, some doubt the legitimacy of the collection.
What’s bothering Ordinal Punks?
Given that the Bitcoin chain was not originally designed to provide NFT functionality, there is no infrastructure to verify information such as sales, or even to place sales in a click-to-buy process.
Details about Ordinal Punks are limited to people’s accounts of what happened, not publicly available data derived from information on the web.
Quoting the director of research at PROOF Collective, who obtained this information from a “Google doc”, Norwegian said Ordinal Punks has a current floor price of 55.4 ETH ($85,500). He added that this was a ballpark figure for a collection of blue chip NFTs, but then asked if Ordinal Punks were worthy of being classified as blue chips.
Supporting this view, TheNorweigan pointed out the following, which makes him think they are “sketchy”:
- Everything happens over the counter
- There are many scams
- Transparency low to none
- You Need to Run a Bitcoin Mining Node
- Extreme information asymmetry
Demand for Bitcoin NFT is going crazy
@seanbonner tweeted that Bitcoin Punks, an Ethereum clone of CryptoPunks, is gaining momentum right now.
bitcoin punks have the same disadvantages as Ordinal Punks due to using the same unsuitable, underdeveloped NFT infrastructure in bitcoin.
However, despite the lack of smart contracts and the “square peg, round hole” approach, people on Discord are going crazy trying to buy bitcoin punk, according to @seanbonner. He advised not to succumb to FOMO because of the following:
“A. There is no market so you have to rely on trust and scammers are everywhere B. Fomo is crazy and people are asking for stupid prices C. Hard to get, even harder to translate. Again, it’s not like eth in the way we’re all used to.“.
Bonner also pointed out that Bitcoin punks are not “official”, adding that they are just a copy of cryptopunks on any network. The same can be said for Ordinal Punks, who TheNorwegian indicated that they are almost identical to MutantPunks Ethereum.
“I think bitcoin NFT could be a great solution for this space and bring new people into it. However, I am bearish in that there is organized hype and influencers selling you stones disguised as gold.“
What’s going on in Discord Ordinal Punks?
Access to Ordinal Punks Discordthe activity of buying and selling is not as “crazy” as Bonner described in the Bitcoin Punks Discord, perhaps because there are only 100 of the former versus 10,000 of the latter.
However, the general channel is very active and seems to be the place to discuss Bitcoin NFTs, not just Ordinal Punks. After watching Google doc on bitcoin NFTs have been discovered. He showed 43 NFT projects with links to Discord and information such as an offer and notes for potential buyers.
According to the administrator of FlowStay, as of the evening of February 9, 17 Ordinal Punk were still available for purchase.
Also, a sales review shows that Ordinal Punks changed hands for a lot less in the early days. The first sale occurred on February 2, when #69 was sold for 0.07 BTC. Scrolling down now shows a steady rise in prices over time.
Sale #94 was confirmed at 9.5 BTC and was the most expensive sale seen on the channel.
On-chain data shows Bitcoin is emerging from the depths of despair
Cryptooshala’s latest market report takes a detailed look at data from the Bitcoin network suggesting the bear market may be coming to an end.
Credit : cryptoslate.com
