- NFT collectors are unable to access or move their digital artworks from FTX NFT
- The problem has spilled over to even those who had moved their NFTs outside the platform
- Some NFT project teams have the lamented lack of communication with the FTX team to discuss a solution
After the FTX saga impacted NFT prices across the market, the focus is now turning to projects that used FTX NFT as their exclusive launch platform – reports show that collectors are unable to move or even access their collections on the exchange. Holders have reported that even digital artworks held in external wallets are impacted, with links to the platform no longer available. The NFT market has been a surprise victim of the FTX collapse, with these new issues highlighting the problem with not hosting NFTs on IPFS.
NFT Creators “Shocked”
One notable NFT project stuck on the exchange is Coachella, a popular music festival that launched its digital artworks on FTX NFT in February, pocketing $1.5 million in sales. The collection featured 10 NFTs that gave holders exclusive benefits including no entry fees to festivals forever, but these benefits are now in question.
Coachella NFTs are stuck and ‘disabled’ on FTX.
They sold $1.5m in Feb including 10 lifetime VIP passes. pic.twitter.com/QM1vXxIEwB
— musicben.eth 🎧 (@_Kaspar__) November 15, 2022
According to a person familiar with the development, Coachella is “shocked” by the latest happenings at the Sam Bankman-Fried-led cryptocurrency exchange. Although the person revealed that they are unable to communicate with the exchange, they disclosed that they are working “to come up with solutions based on the tools [they] have access to.” Coachella has since advised users to log out from their FTX accounts and refrain from accessing the exchange.
Years to Regain Access?
Speaking to Decrypt, Stephen Hess, the CEO of Metaplex, an NFT platform that worked with Coachella, said that it may take years to regain access to digital artworks stuck on FTX due to “the ongoing bankruptcy process.”
NFT collectors holding popular NBA player Steph Curry’s 2974 virtual artworks also complained about having issues accessing their NFTs on FTX. Tomorrowland is another NFT project tied to the FTX NFT platform. With FTX having filed for bankruptcy and regulators already on the exchange’s neck, it’s unclear when or if the NFTs will ever be accessible again.
Had the collections used the IPFS (InterPlanetary File System), these NFTs would still be able to be accessed and moved, highlighting the danger that NFT holders are in without realizing.
