VC

ConspicuouslyBland

Too centralised, too much downtime (which you don't want at all from a distributed ledger), too much VC influence. As a distributed ledger tech, it's shit. That's the reason.

CointestAdmin

#NFT Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the NFT Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Updated from [my previous entry here](https://np.reddit.com/r/CryptoCurrency/comments/pfoo0a/rcc_cointest_general_concepts_nft_conarguments/hd7ew7q/): > > *Disclaimer: I don't currently hold any NFTs nor have I ever minted or speculated on them* > > #NFTs explained > > - One of BTC's original innovations was [digital scarcity](https://policyreview.info/glossary/digital-scarcity). > > - NFTs inherit this innovation - however, unlike BTC or other cryptocurrencies, NFTs are 'non fungible'. 1 BTC is ([ideally](https://sethsimmons.me/posts/fungibility-graveyard/)) interchangeable for another BTC, but 1 NFT =/= another NFT. > > - As NFTs aren’t interchangeable with each other, we've seen interest explode over the past year with usecases related to proof of authenticity and ownership. > > - For more reading, I'd highly suggest [the NFT report from Kraken](https://kraken.docsend.com/view/964aiz4n3y5dti3s). > > #Concerns > - The first negative that often comes to mind is probably the cost of minting and transferring NFTs. Small purchases, sales, and transactions can be costly for users. > > - However, this argument is usually specific to scalability issues of the Ethereum network, rather than NFTs broadly (which exist on or are planned for other chains, including BSC, Tezos, Solana, Cosmos, Cardano, Algorand etc.). > > - For the same reason, I would discount the other big negative that often gets mentioned - [environmental sustainability](https://www.theverge.com/2021/3/15/22328203/nft-cryptoart-ethereum-blockchain-climate-change) - which similarly conflates the environmental impact of NFTs with PoW chains. > > - I think more fundamental concerns around NFTs are that - in some cases - they are *not actually so trustless, permanent or scarce*, which undermines their premise and value proposition. > > - Issues like [spoofing, deceitful bidding](https://blog.mycrypto.com/common-nft-scams-to-avoid/) and [phishing](https://www.theverge.com/2022/2/20/22943228/opensea-phishing-hack-smart-contract-bug-stolen-nft) are certainly present with NFTs. Chainalysis recently posted an interesting report about the prevalence of [wash trading and money laundering in NFT markets](https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/). > > > - On the one hand, it's cool that the transparency of the blockchain allows anyone to trace this activity (more so than in traditional art markets). Like the case of[ Melania Trump's NFT sale](https://www.vice.com/en/article/m7vpx8/analyzing-the-very-bizarre-sale-of-melania-trumps-dollar170000-nft). Or trying to disentangle the [web of influence around celebrities buying NFTs](https://maxread.substack.com/p/mapping-the-celebrity-nft-complex). > > - But it also indicates that maybe the value of NFTs is less about digital scarcity/trustlessness and more about social engineering/manufactured hype. > > > - Other murky practices would be stuff like [sleepminting on Ethereum](https://timdaub.github.io/2021/04/22/nft-sleepminting-beeple-provenance/), which really undermines the purported authenticity and scarcity of NFTs: > > - For example, [Christie's auctioned an NFT by the artist Beeple for $69M](https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html) (nice). > > * [Monsieur Personne](https://nftheft.com/) then exploited the ERC-721 smart contract to display Beeple as the creator of a copied NFT at the protocol level. > > - [Additional exploits](https://blog.mycrypto.com/nft-smart-contract-bugs-exploits/) have included [brute force attacks to mint rare NFTs](https://iphelix.medium.com/meebit-nft-exploit-analysis-c9417b804f89) or using smart contracts to [bypass a sales cap, like with the Adidas NFT drop](https://twitter.com/Montana_Wong/status/1472023753865396227). > > - Lastly, there's a concern about the permanence and trustlessness of NFTs. An NFT typically points to a URL on the internet or an [IPFS](https://academy.binance.com/en/glossary/interplanetary-file-system-ipfs) hash. These then point not to the media itself, but to a JSON file hosted on a company's servers. > > > - [To take Beeple's $69M NFT as an example](https://twitter.com/jonty/status/1372163423446917122?lang=en), its [JSON metadata] (https://ipfs.io/ipfs/QmPAg1mjxcEQPPtqsLoEcauVedaeMH81WXDPvPx3VC5zUz) points us to an IPFS gateway run by http://makersplace.com. > > - So retaining access to this $69M investment depends on a company staying solvent and [keeping their IPFS gateway or centralized server running](https://www.theverge.com/2021/3/25/22349242/nft-metadata-explained-art-crypto-urls-links-ipfs). > > - Here's a [recent example of OpenSea serves going down](https://np.reddit.com/r/CryptoCurrency/comments/r5wavu\/opensea_was_down_and_users_have_been_freaking_out/). > > - There is also a risk of ['link rot'](https://en.wikipedia.org/wiki/Link_rot) > > - Or, imagine a scenario in which the gateway operator runs out of capital or even goes bust. Could there be a blackmail situation where a third party scoops up the domain and ransoms access to your NFT assets? > > - Worth mentioning that this doesn't apply to all NFTs and some groups are trying to advocate a more permanent storage solution, like [Arweave](https://www.arweave.org/). ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6sviv/general_concepts_round_nft_conarguments_december/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_NFT) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/vpazdp/monthly_optimists_discussion_july_2022/).

KAX1107

He was asked if ethereum is a security and he just stated the facts of the matter. If you don't want silicon valley regulations, how about just don't operate like a silicon valley start up? How about not giving yourself free coins and raising investments without proper disclosure? If you do all this and then try to claim you're just like Bitcoin, people are going to call bullshit. Why can't every silicon valley company do it? And that's what we're seeing. All these VCs using blockchain as a front to escape silicon valley regulations. Ethereum can never actually compete with bitcoin. I don't know where people get the idea. Bitcoin cannot be regulated because it's decentralized. If government or some agency is able to regulate something, it's not decentralized. Tomorrow if infura gets shut down, entire ethereum network goes down. Every wallet and dapp runs on centralized AWS. All the layer 2s are centralized VC owned.

CointestAdmin

#NFT Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the NFT Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Updated from [my previous entry here](https://np.reddit.com/r/CryptoCurrency/comments/pfoo0a/rcc_cointest_general_concepts_nft_conarguments/hd7ew7q/): > > *Disclaimer: I don't currently hold any NFTs nor have I ever minted or speculated on them* > > #NFTs explained > > - One of BTC's original innovations was [digital scarcity](https://policyreview.info/glossary/digital-scarcity). > > - NFTs inherit this innovation - however, unlike BTC or other cryptocurrencies, NFTs are 'non fungible'. 1 BTC is ([ideally](https://sethsimmons.me/posts/fungibility-graveyard/)) interchangeable for another BTC, but 1 NFT =/= another NFT. > > - As NFTs aren’t interchangeable with each other, we've seen interest explode over the past year with usecases related to proof of authenticity and ownership. > > - For more reading, I'd highly suggest [the NFT report from Kraken](https://kraken.docsend.com/view/964aiz4n3y5dti3s). > > #Concerns > - The first negative that often comes to mind is probably the cost of minting and transferring NFTs. Small purchases, sales, and transactions can be costly for users. > > - However, this argument is usually specific to scalability issues of the Ethereum network, rather than NFTs broadly (which exist on or are planned for other chains, including BSC, Tezos, Solana, Cosmos, Cardano, Algorand etc.). > > - For the same reason, I would discount the other big negative that often gets mentioned - [environmental sustainability](https://www.theverge.com/2021/3/15/22328203/nft-cryptoart-ethereum-blockchain-climate-change) - which similarly conflates the environmental impact of NFTs with PoW chains. > > - I think more fundamental concerns around NFTs are that - in some cases - they are *not actually so trustless, permanent or scarce*, which undermines their premise and value proposition. > > - Issues like [spoofing, deceitful bidding](https://blog.mycrypto.com/common-nft-scams-to-avoid/) and [phishing](https://www.theverge.com/2022/2/20/22943228/opensea-phishing-hack-smart-contract-bug-stolen-nft) are certainly present with NFTs. Chainalysis recently posted an interesting report about the prevalence of [wash trading and money laundering in NFT markets](https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/). > > > - On the one hand, it's cool that the transparency of the blockchain allows anyone to trace this activity (more so than in traditional art markets). Like the case of[ Melania Trump's NFT sale](https://www.vice.com/en/article/m7vpx8/analyzing-the-very-bizarre-sale-of-melania-trumps-dollar170000-nft). Or trying to disentangle the [web of influence around celebrities buying NFTs](https://maxread.substack.com/p/mapping-the-celebrity-nft-complex). > > - But it also indicates that maybe the value of NFTs is less about digital scarcity/trustlessness and more about social engineering/manufactured hype. > > > - Other murky practices would be stuff like [sleepminting on Ethereum](https://timdaub.github.io/2021/04/22/nft-sleepminting-beeple-provenance/), which really undermines the purported authenticity and scarcity of NFTs: > > - For example, [Christie's auctioned an NFT by the artist Beeple for $69M](https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html) (nice). > > * [Monsieur Personne](https://nftheft.com/) then exploited the ERC-721 smart contract to display Beeple as the creator of a copied NFT at the protocol level. > > - [Additional exploits](https://blog.mycrypto.com/nft-smart-contract-bugs-exploits/) have included [brute force attacks to mint rare NFTs](https://iphelix.medium.com/meebit-nft-exploit-analysis-c9417b804f89) or using smart contracts to [bypass a sales cap, like with the Adidas NFT drop](https://twitter.com/Montana_Wong/status/1472023753865396227). > > - Lastly, there's a concern about the permanence and trustlessness of NFTs. An NFT typically points to a URL on the internet or an [IPFS](https://academy.binance.com/en/glossary/interplanetary-file-system-ipfs) hash. These then point not to the media itself, but to a JSON file hosted on a company's servers. > > > - [To take Beeple's $69M NFT as an example](https://twitter.com/jonty/status/1372163423446917122?lang=en), its [JSON metadata] (https://ipfs.io/ipfs/QmPAg1mjxcEQPPtqsLoEcauVedaeMH81WXDPvPx3VC5zUz) points us to an IPFS gateway run by http://makersplace.com. > > - So retaining access to this $69M investment depends on a company staying solvent and [keeping their IPFS gateway or centralized server running](https://www.theverge.com/2021/3/25/22349242/nft-metadata-explained-art-crypto-urls-links-ipfs). > > - Here's a [recent example of OpenSea serves going down](https://np.reddit.com/r/CryptoCurrency/comments/r5wavu\/opensea_was_down_and_users_have_been_freaking_out/). > > - There is also a risk of ['link rot'](https://en.wikipedia.org/wiki/Link_rot) > > - Or, imagine a scenario in which the gateway operator runs out of capital or even goes bust. Could there be a blackmail situation where a third party scoops up the domain and ransoms access to your NFT assets? > > - Worth mentioning that this doesn't apply to all NFTs and some groups are trying to advocate a more permanent storage solution, like [Arweave](https://www.arweave.org/). ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6sviv/general_concepts_round_nft_conarguments_december/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_NFT) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/vpazdp/monthly_optimists_discussion_july_2022/).

Frank_Thunderwood

Tell that to the VC's who have invested billions so far this year in the space. In fact, Web3 gaming has received more funding than traditional. It may take a few years but NFTs are here to stay.

CointestAdmin

#NFT Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the NFT Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Updated from [my previous entry here](https://np.reddit.com/r/CryptoCurrency/comments/pfoo0a/rcc_cointest_general_concepts_nft_conarguments/hd7ew7q/): > > *Disclaimer: I don't currently hold any NFTs nor have I ever minted or speculated on them* > > #NFTs explained > > - One of BTC's original innovations was [digital scarcity](https://policyreview.info/glossary/digital-scarcity). > > - NFTs inherit this innovation - however, unlike BTC or other cryptocurrencies, NFTs are 'non fungible'. 1 BTC is ([ideally](https://sethsimmons.me/posts/fungibility-graveyard/)) interchangeable for another BTC, but 1 NFT =/= another NFT. > > - As NFTs aren’t interchangeable with each other, we've seen interest explode over the past year with usecases related to proof of authenticity and ownership. > > - For more reading, I'd highly suggest [the NFT report from Kraken](https://kraken.docsend.com/view/964aiz4n3y5dti3s). > > #Concerns > - The first negative that often comes to mind is probably the cost of minting and transferring NFTs. Small purchases, sales, and transactions can be costly for users. > > - However, this argument is usually specific to scalability issues of the Ethereum network, rather than NFTs broadly (which exist on or are planned for other chains, including BSC, Tezos, Solana, Cosmos, Cardano, Algorand etc.). > > - For the same reason, I would discount the other big negative that often gets mentioned - [environmental sustainability](https://www.theverge.com/2021/3/15/22328203/nft-cryptoart-ethereum-blockchain-climate-change) - which similarly conflates the environmental impact of NFTs with PoW chains. > > - I think more fundamental concerns around NFTs are that - in some cases - they are *not actually so trustless, permanent or scarce*, which undermines their premise and value proposition. > > - Issues like [spoofing, deceitful bidding](https://blog.mycrypto.com/common-nft-scams-to-avoid/) and [phishing](https://www.theverge.com/2022/2/20/22943228/opensea-phishing-hack-smart-contract-bug-stolen-nft) are certainly present with NFTs. Chainalysis recently posted an interesting report about the prevalence of [wash trading and money laundering in NFT markets](https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/). > > > - On the one hand, it's cool that the transparency of the blockchain allows anyone to trace this activity (more so than in traditional art markets). Like the case of[ Melania Trump's NFT sale](https://www.vice.com/en/article/m7vpx8/analyzing-the-very-bizarre-sale-of-melania-trumps-dollar170000-nft). Or trying to disentangle the [web of influence around celebrities buying NFTs](https://maxread.substack.com/p/mapping-the-celebrity-nft-complex). > > - But it also indicates that maybe the value of NFTs is less about digital scarcity/trustlessness and more about social engineering/manufactured hype. > > > - Other murky practices would be stuff like [sleepminting on Ethereum](https://timdaub.github.io/2021/04/22/nft-sleepminting-beeple-provenance/), which really undermines the purported authenticity and scarcity of NFTs: > > - For example, [Christie's auctioned an NFT by the artist Beeple for $69M](https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html) (nice). > > * [Monsieur Personne](https://nftheft.com/) then exploited the ERC-721 smart contract to display Beeple as the creator of a copied NFT at the protocol level. > > - [Additional exploits](https://blog.mycrypto.com/nft-smart-contract-bugs-exploits/) have included [brute force attacks to mint rare NFTs](https://iphelix.medium.com/meebit-nft-exploit-analysis-c9417b804f89) or using smart contracts to [bypass a sales cap, like with the Adidas NFT drop](https://twitter.com/Montana_Wong/status/1472023753865396227). > > - Lastly, there's a concern about the permanence and trustlessness of NFTs. An NFT typically points to a URL on the internet or an [IPFS](https://academy.binance.com/en/glossary/interplanetary-file-system-ipfs) hash. These then point not to the media itself, but to a JSON file hosted on a company's servers. > > > - [To take Beeple's $69M NFT as an example](https://twitter.com/jonty/status/1372163423446917122?lang=en), its [JSON metadata] (https://ipfs.io/ipfs/QmPAg1mjxcEQPPtqsLoEcauVedaeMH81WXDPvPx3VC5zUz) points us to an IPFS gateway run by http://makersplace.com. > > - So retaining access to this $69M investment depends on a company staying solvent and [keeping their IPFS gateway or centralized server running](https://www.theverge.com/2021/3/25/22349242/nft-metadata-explained-art-crypto-urls-links-ipfs). > > - Here's a [recent example of OpenSea serves going down](https://np.reddit.com/r/CryptoCurrency/comments/r5wavu\/opensea_was_down_and_users_have_been_freaking_out/). > > - There is also a risk of ['link rot'](https://en.wikipedia.org/wiki/Link_rot) > > - Or, imagine a scenario in which the gateway operator runs out of capital or even goes bust. Could there be a blackmail situation where a third party scoops up the domain and ransoms access to your NFT assets? > > - Worth mentioning that this doesn't apply to all NFTs and some groups are trying to advocate a more permanent storage solution, like [Arweave](https://www.arweave.org/). ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6sviv/general_concepts_round_nft_conarguments_december/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_NFT) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/vpazdp/monthly_optimists_discussion_july_2022/).

road22

If markets keep crashing because of inflation or downturn in the economy, there will be an inflection or turning point when crypto and precious metal become safe haven assets. When VC's have closed out all their risk assets and that is very close to now. When Institutions have closed out their BTC positions which happened a while ago. When currencies around the globe start falling with 50% inflation or more, The wealthy will want a safe haven asset to hold. Usually in a different currency with no government controls. For now everyone is eyeing the US dollar. But eventually the US will have to capitulate and turn on the money printers again or suffer a total collapse in the economy.

danhauk

All you have to do is be a millionaire VC and get all your VC friends to hype it up after you invest!

CointestAdmin

#NFT Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the NFT Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Updated from [my previous entry here](https://np.reddit.com/r/CryptoCurrency/comments/pfoo0a/rcc_cointest_general_concepts_nft_conarguments/hd7ew7q/): > > *Disclaimer: I don't currently hold any NFTs nor have I ever minted or speculated on them* > > #NFTs explained > > - One of BTC's original innovations was [digital scarcity](https://policyreview.info/glossary/digital-scarcity). > > - NFTs inherit this innovation - however, unlike BTC or other cryptocurrencies, NFTs are 'non fungible'. 1 BTC is ([ideally](https://sethsimmons.me/posts/fungibility-graveyard/)) interchangeable for another BTC, but 1 NFT =/= another NFT. > > - As NFTs aren’t interchangeable with each other, we've seen interest explode over the past year with usecases related to proof of authenticity and ownership. > > - For more reading, I'd highly suggest [the NFT report from Kraken](https://kraken.docsend.com/view/964aiz4n3y5dti3s). > > #Concerns > - The first negative that often comes to mind is probably the cost of minting and transferring NFTs. Small purchases, sales, and transactions can be costly for users. > > - However, this argument is usually specific to scalability issues of the Ethereum network, rather than NFTs broadly (which exist on or are planned for other chains, including BSC, Tezos, Solana, Cosmos, Cardano, Algorand etc.). > > - For the same reason, I would discount the other big negative that often gets mentioned - [environmental sustainability](https://www.theverge.com/2021/3/15/22328203/nft-cryptoart-ethereum-blockchain-climate-change) - which similarly conflates the environmental impact of NFTs with PoW chains. > > - I think more fundamental concerns around NFTs are that - in some cases - they are *not actually so trustless, permanent or scarce*, which undermines their premise and value proposition. > > - Issues like [spoofing, deceitful bidding](https://blog.mycrypto.com/common-nft-scams-to-avoid/) and [phishing](https://www.theverge.com/2022/2/20/22943228/opensea-phishing-hack-smart-contract-bug-stolen-nft) are certainly present with NFTs. Chainalysis recently posted an interesting report about the prevalence of [wash trading and money laundering in NFT markets](https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/). > > > - On the one hand, it's cool that the transparency of the blockchain allows anyone to trace this activity (more so than in traditional art markets). Like the case of[ Melania Trump's NFT sale](https://www.vice.com/en/article/m7vpx8/analyzing-the-very-bizarre-sale-of-melania-trumps-dollar170000-nft). Or trying to disentangle the [web of influence around celebrities buying NFTs](https://maxread.substack.com/p/mapping-the-celebrity-nft-complex). > > - But it also indicates that maybe the value of NFTs is less about digital scarcity/trustlessness and more about social engineering/manufactured hype. > > > - Other murky practices would be stuff like [sleepminting on Ethereum](https://timdaub.github.io/2021/04/22/nft-sleepminting-beeple-provenance/), which really undermines the purported authenticity and scarcity of NFTs: > > - For example, [Christie's auctioned an NFT by the artist Beeple for $69M](https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html) (nice). > > * [Monsieur Personne](https://nftheft.com/) then exploited the ERC-721 smart contract to display Beeple as the creator of a copied NFT at the protocol level. > > - [Additional exploits](https://blog.mycrypto.com/nft-smart-contract-bugs-exploits/) have included [brute force attacks to mint rare NFTs](https://iphelix.medium.com/meebit-nft-exploit-analysis-c9417b804f89) or using smart contracts to [bypass a sales cap, like with the Adidas NFT drop](https://twitter.com/Montana_Wong/status/1472023753865396227). > > - Lastly, there's a concern about the permanence and trustlessness of NFTs. An NFT typically points to a URL on the internet or an [IPFS](https://academy.binance.com/en/glossary/interplanetary-file-system-ipfs) hash. These then point not to the media itself, but to a JSON file hosted on a company's servers. > > > - [To take Beeple's $69M NFT as an example](https://twitter.com/jonty/status/1372163423446917122?lang=en), its [JSON metadata] (https://ipfs.io/ipfs/QmPAg1mjxcEQPPtqsLoEcauVedaeMH81WXDPvPx3VC5zUz) points us to an IPFS gateway run by http://makersplace.com. > > - So retaining access to this $69M investment depends on a company staying solvent and [keeping their IPFS gateway or centralized server running](https://www.theverge.com/2021/3/25/22349242/nft-metadata-explained-art-crypto-urls-links-ipfs). > > - Here's a [recent example of OpenSea serves going down](https://np.reddit.com/r/CryptoCurrency/comments/r5wavu\/opensea_was_down_and_users_have_been_freaking_out/). > > - There is also a risk of ['link rot'](https://en.wikipedia.org/wiki/Link_rot) > > - Or, imagine a scenario in which the gateway operator runs out of capital or even goes bust. Could there be a blackmail situation where a third party scoops up the domain and ransoms access to your NFT assets? > > - Worth mentioning that this doesn't apply to all NFTs and some groups are trying to advocate a more permanent storage solution, like [Arweave](https://www.arweave.org/). ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6sviv/general_concepts_round_nft_conarguments_december/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_NFT) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/vpazdp/monthly_optimists_discussion_july_2022/).

CointestAdmin

#NFT Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the NFT Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Updated from [my previous entry here](https://np.reddit.com/r/CryptoCurrency/comments/pfoo0a/rcc_cointest_general_concepts_nft_conarguments/hd7ew7q/): > > *Disclaimer: I don't currently hold any NFTs nor have I ever minted or speculated on them* > > #NFTs explained > > - One of BTC's original innovations was [digital scarcity](https://policyreview.info/glossary/digital-scarcity). > > - NFTs inherit this innovation - however, unlike BTC or other cryptocurrencies, NFTs are 'non fungible'. 1 BTC is ([ideally](https://sethsimmons.me/posts/fungibility-graveyard/)) interchangeable for another BTC, but 1 NFT =/= another NFT. > > - As NFTs aren’t interchangeable with each other, we've seen interest explode over the past year with usecases related to proof of authenticity and ownership. > > - For more reading, I'd highly suggest [the NFT report from Kraken](https://kraken.docsend.com/view/964aiz4n3y5dti3s). > > #Concerns > - The first negative that often comes to mind is probably the cost of minting and transferring NFTs. Small purchases, sales, and transactions can be costly for users. > > - However, this argument is usually specific to scalability issues of the Ethereum network, rather than NFTs broadly (which exist on or are planned for other chains, including BSC, Tezos, Solana, Cosmos, Cardano, Algorand etc.). > > - For the same reason, I would discount the other big negative that often gets mentioned - [environmental sustainability](https://www.theverge.com/2021/3/15/22328203/nft-cryptoart-ethereum-blockchain-climate-change) - which similarly conflates the environmental impact of NFTs with PoW chains. > > - I think more fundamental concerns around NFTs are that - in some cases - they are *not actually so trustless, permanent or scarce*, which undermines their premise and value proposition. > > - Issues like [spoofing, deceitful bidding](https://blog.mycrypto.com/common-nft-scams-to-avoid/) and [phishing](https://www.theverge.com/2022/2/20/22943228/opensea-phishing-hack-smart-contract-bug-stolen-nft) are certainly present with NFTs. Chainalysis recently posted an interesting report about the prevalence of [wash trading and money laundering in NFT markets](https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/). > > > - On the one hand, it's cool that the transparency of the blockchain allows anyone to trace this activity (more so than in traditional art markets). Like the case of[ Melania Trump's NFT sale](https://www.vice.com/en/article/m7vpx8/analyzing-the-very-bizarre-sale-of-melania-trumps-dollar170000-nft). Or trying to disentangle the [web of influence around celebrities buying NFTs](https://maxread.substack.com/p/mapping-the-celebrity-nft-complex). > > - But it also indicates that maybe the value of NFTs is less about digital scarcity/trustlessness and more about social engineering/manufactured hype. > > > - Other murky practices would be stuff like [sleepminting on Ethereum](https://timdaub.github.io/2021/04/22/nft-sleepminting-beeple-provenance/), which really undermines the purported authenticity and scarcity of NFTs: > > - For example, [Christie's auctioned an NFT by the artist Beeple for $69M](https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html) (nice). > > * [Monsieur Personne](https://nftheft.com/) then exploited the ERC-721 smart contract to display Beeple as the creator of a copied NFT at the protocol level. > > - [Additional exploits](https://blog.mycrypto.com/nft-smart-contract-bugs-exploits/) have included [brute force attacks to mint rare NFTs](https://iphelix.medium.com/meebit-nft-exploit-analysis-c9417b804f89) or using smart contracts to [bypass a sales cap, like with the Adidas NFT drop](https://twitter.com/Montana_Wong/status/1472023753865396227). > > - Lastly, there's a concern about the permanence and trustlessness of NFTs. An NFT typically points to a URL on the internet or an [IPFS](https://academy.binance.com/en/glossary/interplanetary-file-system-ipfs) hash. These then point not to the media itself, but to a JSON file hosted on a company's servers. > > > - [To take Beeple's $69M NFT as an example](https://twitter.com/jonty/status/1372163423446917122?lang=en), its [JSON metadata] (https://ipfs.io/ipfs/QmPAg1mjxcEQPPtqsLoEcauVedaeMH81WXDPvPx3VC5zUz) points us to an IPFS gateway run by http://makersplace.com. > > - So retaining access to this $69M investment depends on a company staying solvent and [keeping their IPFS gateway or centralized server running](https://www.theverge.com/2021/3/25/22349242/nft-metadata-explained-art-crypto-urls-links-ipfs). > > - Here's a [recent example of OpenSea serves going down](https://np.reddit.com/r/CryptoCurrency/comments/r5wavu\/opensea_was_down_and_users_have_been_freaking_out/). > > - There is also a risk of ['link rot'](https://en.wikipedia.org/wiki/Link_rot) > > - Or, imagine a scenario in which the gateway operator runs out of capital or even goes bust. Could there be a blackmail situation where a third party scoops up the domain and ransoms access to your NFT assets? > > - Worth mentioning that this doesn't apply to all NFTs and some groups are trying to advocate a more permanent storage solution, like [Arweave](https://www.arweave.org/). ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6sviv/general_concepts_round_nft_conarguments_december/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_NFT) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/vpazdp/monthly_optimists_discussion_july_2022/).

_TheWolfOfWalmart_

Yet to be determined if it's a shitcoin. The L1 network is very good. They need to build a solid L2, infrastructure and ecosystem if they don't want it to be another shitcoin. Massive VC money behind it, so they have that going for them.

SigSalvadore

Not a solana fan, BUT if the whole community was on that flight (including founders, VC, wallstreet dbags), I guarantee the plane wouldn't crash.

WombatLover2000

But the VC's caused global warming and it's centralized!

Walternotwalter

When will people realize "yield farming" is literally shorting your own assets? And that this is the wild west and every exchange is a different saloon running a poke game and the house is all VC money. Get your money off exchanges. At this point you can buy and sell crypto on ledger live.

CointestAdmin

#NFT Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the NFT Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Updated from [my previous entry here](https://np.reddit.com/r/CryptoCurrency/comments/pfoo0a/rcc_cointest_general_concepts_nft_conarguments/hd7ew7q/): > > *Disclaimer: I don't currently hold any NFTs nor have I ever minted or speculated on them* > > #NFTs explained > > - One of BTC's original innovations was [digital scarcity](https://policyreview.info/glossary/digital-scarcity). > > - NFTs inherit this innovation - however, unlike BTC or other cryptocurrencies, NFTs are 'non fungible'. 1 BTC is ([ideally](https://sethsimmons.me/posts/fungibility-graveyard/)) interchangeable for another BTC, but 1 NFT =/= another NFT. > > - As NFTs aren’t interchangeable with each other, we've seen interest explode over the past year with usecases related to proof of authenticity and ownership. > > - For more reading, I'd highly suggest [the NFT report from Kraken](https://kraken.docsend.com/view/964aiz4n3y5dti3s). > > #Concerns > - The first negative that often comes to mind is probably the cost of minting and transferring NFTs. Small purchases, sales, and transactions can be costly for users. > > - However, this argument is usually specific to scalability issues of the Ethereum network, rather than NFTs broadly (which exist on or are planned for other chains, including BSC, Tezos, Solana, Cosmos, Cardano, Algorand etc.). > > - For the same reason, I would discount the other big negative that often gets mentioned - [environmental sustainability](https://www.theverge.com/2021/3/15/22328203/nft-cryptoart-ethereum-blockchain-climate-change) - which similarly conflates the environmental impact of NFTs with PoW chains. > > - I think more fundamental concerns around NFTs are that - in some cases - they are *not actually so trustless, permanent or scarce*, which undermines their premise and value proposition. > > - Issues like [spoofing, deceitful bidding](https://blog.mycrypto.com/common-nft-scams-to-avoid/) and [phishing](https://www.theverge.com/2022/2/20/22943228/opensea-phishing-hack-smart-contract-bug-stolen-nft) are certainly present with NFTs. Chainalysis recently posted an interesting report about the prevalence of [wash trading and money laundering in NFT markets](https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/). > > > - On the one hand, it's cool that the transparency of the blockchain allows anyone to trace this activity (more so than in traditional art markets). Like the case of[ Melania Trump's NFT sale](https://www.vice.com/en/article/m7vpx8/analyzing-the-very-bizarre-sale-of-melania-trumps-dollar170000-nft). Or trying to disentangle the [web of influence around celebrities buying NFTs](https://maxread.substack.com/p/mapping-the-celebrity-nft-complex). > > - But it also indicates that maybe the value of NFTs is less about digital scarcity/trustlessness and more about social engineering/manufactured hype. > > > - Other murky practices would be stuff like [sleepminting on Ethereum](https://timdaub.github.io/2021/04/22/nft-sleepminting-beeple-provenance/), which really undermines the purported authenticity and scarcity of NFTs: > > - For example, [Christie's auctioned an NFT by the artist Beeple for $69M](https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html) (nice). > > * [Monsieur Personne](https://nftheft.com/) then exploited the ERC-721 smart contract to display Beeple as the creator of a copied NFT at the protocol level. > > - [Additional exploits](https://blog.mycrypto.com/nft-smart-contract-bugs-exploits/) have included [brute force attacks to mint rare NFTs](https://iphelix.medium.com/meebit-nft-exploit-analysis-c9417b804f89) or using smart contracts to [bypass a sales cap, like with the Adidas NFT drop](https://twitter.com/Montana_Wong/status/1472023753865396227). > > - Lastly, there's a concern about the permanence and trustlessness of NFTs. An NFT typically points to a URL on the internet or an [IPFS](https://academy.binance.com/en/glossary/interplanetary-file-system-ipfs) hash. These then point not to the media itself, but to a JSON file hosted on a company's servers. > > > - [To take Beeple's $69M NFT as an example](https://twitter.com/jonty/status/1372163423446917122?lang=en), its [JSON metadata] (https://ipfs.io/ipfs/QmPAg1mjxcEQPPtqsLoEcauVedaeMH81WXDPvPx3VC5zUz) points us to an IPFS gateway run by http://makersplace.com. > > - So retaining access to this $69M investment depends on a company staying solvent and [keeping their IPFS gateway or centralized server running](https://www.theverge.com/2021/3/25/22349242/nft-metadata-explained-art-crypto-urls-links-ipfs). > > - Here's a [recent example of OpenSea serves going down](https://np.reddit.com/r/CryptoCurrency/comments/r5wavu\/opensea_was_down_and_users_have_been_freaking_out/). > > - There is also a risk of ['link rot'](https://en.wikipedia.org/wiki/Link_rot) > > - Or, imagine a scenario in which the gateway operator runs out of capital or even goes bust. Could there be a blackmail situation where a third party scoops up the domain and ransoms access to your NFT assets? > > - Worth mentioning that this doesn't apply to all NFTs and some groups are trying to advocate a more permanent storage solution, like [Arweave](https://www.arweave.org/). ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6sviv/general_concepts_round_nft_conarguments_december/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_NFT) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/vpazdp/monthly_optimists_discussion_july_2022/).

SnooRegrets5651

Telegraph: If they were to raise VC money now, it would surely be at a lower valuation! The entire investment sector: No shit Sherlock.

DamnMyAPGoinCrazy

Sure criticisms about VCs and who the top validators are fair, but I feel like this question can be asked about every chain. I would agree that maybe SOL is more worrying because of high VC activity, but I wouldn’t say it’s impact would be anywhere near enough to justify the “SOL is a centralised shitcoin!” claims alone, the above average validators/superminority would significantly offset that. Also SOL currently has 1,792 validators, and a super-minority of 25 (source). Those numbers are not only competitive with the rest of the crypto environment, but actually well above average. It would only be like, BTC, ETH, ADA, AVAX and maybe ALGO that are above that level? (I’m maybe forgetting one or two big ones?). I’m not saying Solana is the best or most decentralised by any means, there’s still questions that need to be asked, but the hate circlejerk here lost touch with reality a long time ago lol.

iwakan

> “But but but it goes down all the time… but but centralized VC chain” And do you have any counter-arguments to those points or are you just going to ignore them?

DamnMyAPGoinCrazy

Solana is by far the best bet for the next bull run. Incoming: “But but but it goes down all the time… but but centralized VC chain”

CointestAdmin

#NFT Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the NFT Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Updated from [my previous entry here](https://np.reddit.com/r/CryptoCurrency/comments/pfoo0a/rcc_cointest_general_concepts_nft_conarguments/hd7ew7q/): > > *Disclaimer: I don't currently hold any NFTs nor have I ever minted or speculated on them* > > #NFTs explained > > - One of BTC's original innovations was [digital scarcity](https://policyreview.info/glossary/digital-scarcity). > > - NFTs inherit this innovation - however, unlike BTC or other cryptocurrencies, NFTs are 'non fungible'. 1 BTC is ([ideally](https://sethsimmons.me/posts/fungibility-graveyard/)) interchangeable for another BTC, but 1 NFT =/= another NFT. > > - As NFTs aren’t interchangeable with each other, we've seen interest explode over the past year with usecases related to proof of authenticity and ownership. > > - For more reading, I'd highly suggest [the NFT report from Kraken](https://kraken.docsend.com/view/964aiz4n3y5dti3s). > > #Concerns > - The first negative that often comes to mind is probably the cost of minting and transferring NFTs. Small purchases, sales, and transactions can be costly for users. > > - However, this argument is usually specific to scalability issues of the Ethereum network, rather than NFTs broadly (which exist on or are planned for other chains, including BSC, Tezos, Solana, Cosmos, Cardano, Algorand etc.). > > - For the same reason, I would discount the other big negative that often gets mentioned - [environmental sustainability](https://www.theverge.com/2021/3/15/22328203/nft-cryptoart-ethereum-blockchain-climate-change) - which similarly conflates the environmental impact of NFTs with PoW chains. > > - I think more fundamental concerns around NFTs are that - in some cases - they are *not actually so trustless, permanent or scarce*, which undermines their premise and value proposition. > > - Issues like [spoofing, deceitful bidding](https://blog.mycrypto.com/common-nft-scams-to-avoid/) and [phishing](https://www.theverge.com/2022/2/20/22943228/opensea-phishing-hack-smart-contract-bug-stolen-nft) are certainly present with NFTs. Chainalysis recently posted an interesting report about the prevalence of [wash trading and money laundering in NFT markets](https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/). > > > - On the one hand, it's cool that the transparency of the blockchain allows anyone to trace this activity (more so than in traditional art markets). Like the case of[ Melania Trump's NFT sale](https://www.vice.com/en/article/m7vpx8/analyzing-the-very-bizarre-sale-of-melania-trumps-dollar170000-nft). Or trying to disentangle the [web of influence around celebrities buying NFTs](https://maxread.substack.com/p/mapping-the-celebrity-nft-complex). > > - But it also indicates that maybe the value of NFTs is less about digital scarcity/trustlessness and more about social engineering/manufactured hype. > > > - Other murky practices would be stuff like [sleepminting on Ethereum](https://timdaub.github.io/2021/04/22/nft-sleepminting-beeple-provenance/), which really undermines the purported authenticity and scarcity of NFTs: > > - For example, [Christie's auctioned an NFT by the artist Beeple for $69M](https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html) (nice). > > * [Monsieur Personne](https://nftheft.com/) then exploited the ERC-721 smart contract to display Beeple as the creator of a copied NFT at the protocol level. > > - [Additional exploits](https://blog.mycrypto.com/nft-smart-contract-bugs-exploits/) have included [brute force attacks to mint rare NFTs](https://iphelix.medium.com/meebit-nft-exploit-analysis-c9417b804f89) or using smart contracts to [bypass a sales cap, like with the Adidas NFT drop](https://twitter.com/Montana_Wong/status/1472023753865396227). > > - Lastly, there's a concern about the permanence and trustlessness of NFTs. An NFT typically points to a URL on the internet or an [IPFS](https://academy.binance.com/en/glossary/interplanetary-file-system-ipfs) hash. These then point not to the media itself, but to a JSON file hosted on a company's servers. > > > - [To take Beeple's $69M NFT as an example](https://twitter.com/jonty/status/1372163423446917122?lang=en), its [JSON metadata] (https://ipfs.io/ipfs/QmPAg1mjxcEQPPtqsLoEcauVedaeMH81WXDPvPx3VC5zUz) points us to an IPFS gateway run by http://makersplace.com. > > - So retaining access to this $69M investment depends on a company staying solvent and [keeping their IPFS gateway or centralized server running](https://www.theverge.com/2021/3/25/22349242/nft-metadata-explained-art-crypto-urls-links-ipfs). > > - Here's a [recent example of OpenSea serves going down](https://np.reddit.com/r/CryptoCurrency/comments/r5wavu\/opensea_was_down_and_users_have_been_freaking_out/). > > - There is also a risk of ['link rot'](https://en.wikipedia.org/wiki/Link_rot) > > - Or, imagine a scenario in which the gateway operator runs out of capital or even goes bust. Could there be a blackmail situation where a third party scoops up the domain and ransoms access to your NFT assets? > > - Worth mentioning that this doesn't apply to all NFTs and some groups are trying to advocate a more permanent storage solution, like [Arweave](https://www.arweave.org/). ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6sviv/general_concepts_round_nft_conarguments_december/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_NFT) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/vpazdp/monthly_optimists_discussion_july_2022/).

CointestAdmin

#NFT Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the NFT Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Updated from [my previous entry here](https://np.reddit.com/r/CryptoCurrency/comments/pfoo0a/rcc_cointest_general_concepts_nft_conarguments/hd7ew7q/): > > *Disclaimer: I don't currently hold any NFTs nor have I ever minted or speculated on them* > > #NFTs explained > > - One of BTC's original innovations was [digital scarcity](https://policyreview.info/glossary/digital-scarcity). > > - NFTs inherit this innovation - however, unlike BTC or other cryptocurrencies, NFTs are 'non fungible'. 1 BTC is ([ideally](https://sethsimmons.me/posts/fungibility-graveyard/)) interchangeable for another BTC, but 1 NFT =/= another NFT. > > - As NFTs aren’t interchangeable with each other, we've seen interest explode over the past year with usecases related to proof of authenticity and ownership. > > - For more reading, I'd highly suggest [the NFT report from Kraken](https://kraken.docsend.com/view/964aiz4n3y5dti3s). > > #Concerns > - The first negative that often comes to mind is probably the cost of minting and transferring NFTs. Small purchases, sales, and transactions can be costly for users. > > - However, this argument is usually specific to scalability issues of the Ethereum network, rather than NFTs broadly (which exist on or are planned for other chains, including BSC, Tezos, Solana, Cosmos, Cardano, Algorand etc.). > > - For the same reason, I would discount the other big negative that often gets mentioned - [environmental sustainability](https://www.theverge.com/2021/3/15/22328203/nft-cryptoart-ethereum-blockchain-climate-change) - which similarly conflates the environmental impact of NFTs with PoW chains. > > - I think more fundamental concerns around NFTs are that - in some cases - they are *not actually so trustless, permanent or scarce*, which undermines their premise and value proposition. > > - Issues like [spoofing, deceitful bidding](https://blog.mycrypto.com/common-nft-scams-to-avoid/) and [phishing](https://www.theverge.com/2022/2/20/22943228/opensea-phishing-hack-smart-contract-bug-stolen-nft) are certainly present with NFTs. Chainalysis recently posted an interesting report about the prevalence of [wash trading and money laundering in NFT markets](https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/). > > > - On the one hand, it's cool that the transparency of the blockchain allows anyone to trace this activity (more so than in traditional art markets). Like the case of[ Melania Trump's NFT sale](https://www.vice.com/en/article/m7vpx8/analyzing-the-very-bizarre-sale-of-melania-trumps-dollar170000-nft). Or trying to disentangle the [web of influence around celebrities buying NFTs](https://maxread.substack.com/p/mapping-the-celebrity-nft-complex). > > - But it also indicates that maybe the value of NFTs is less about digital scarcity/trustlessness and more about social engineering/manufactured hype. > > > - Other murky practices would be stuff like [sleepminting on Ethereum](https://timdaub.github.io/2021/04/22/nft-sleepminting-beeple-provenance/), which really undermines the purported authenticity and scarcity of NFTs: > > - For example, [Christie's auctioned an NFT by the artist Beeple for $69M](https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html) (nice). > > * [Monsieur Personne](https://nftheft.com/) then exploited the ERC-721 smart contract to display Beeple as the creator of a copied NFT at the protocol level. > > - [Additional exploits](https://blog.mycrypto.com/nft-smart-contract-bugs-exploits/) have included [brute force attacks to mint rare NFTs](https://iphelix.medium.com/meebit-nft-exploit-analysis-c9417b804f89) or using smart contracts to [bypass a sales cap, like with the Adidas NFT drop](https://twitter.com/Montana_Wong/status/1472023753865396227). > > - Lastly, there's a concern about the permanence and trustlessness of NFTs. An NFT typically points to a URL on the internet or an [IPFS](https://academy.binance.com/en/glossary/interplanetary-file-system-ipfs) hash. These then point not to the media itself, but to a JSON file hosted on a company's servers. > > > - [To take Beeple's $69M NFT as an example](https://twitter.com/jonty/status/1372163423446917122?lang=en), its [JSON metadata] (https://ipfs.io/ipfs/QmPAg1mjxcEQPPtqsLoEcauVedaeMH81WXDPvPx3VC5zUz) points us to an IPFS gateway run by http://makersplace.com. > > - So retaining access to this $69M investment depends on a company staying solvent and [keeping their IPFS gateway or centralized server running](https://www.theverge.com/2021/3/25/22349242/nft-metadata-explained-art-crypto-urls-links-ipfs). > > - Here's a [recent example of OpenSea serves going down](https://np.reddit.com/r/CryptoCurrency/comments/r5wavu\/opensea_was_down_and_users_have_been_freaking_out/). > > - There is also a risk of ['link rot'](https://en.wikipedia.org/wiki/Link_rot) > > - Or, imagine a scenario in which the gateway operator runs out of capital or even goes bust. Could there be a blackmail situation where a third party scoops up the domain and ransoms access to your NFT assets? > > - Worth mentioning that this doesn't apply to all NFTs and some groups are trying to advocate a more permanent storage solution, like [Arweave](https://www.arweave.org/). ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6sviv/general_concepts_round_nft_conarguments_december/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_NFT) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/vpazdp/monthly_optimists_discussion_july_2022/).

CointestAdmin

#NFT Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the NFT Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Updated from [my previous entry here](https://np.reddit.com/r/CryptoCurrency/comments/pfoo0a/rcc_cointest_general_concepts_nft_conarguments/hd7ew7q/): > > *Disclaimer: I don't currently hold any NFTs nor have I ever minted or speculated on them* > > #NFTs explained > > - One of BTC's original innovations was [digital scarcity](https://policyreview.info/glossary/digital-scarcity). > > - NFTs inherit this innovation - however, unlike BTC or other cryptocurrencies, NFTs are 'non fungible'. 1 BTC is ([ideally](https://sethsimmons.me/posts/fungibility-graveyard/)) interchangeable for another BTC, but 1 NFT =/= another NFT. > > - As NFTs aren’t interchangeable with each other, we've seen interest explode over the past year with usecases related to proof of authenticity and ownership. > > - For more reading, I'd highly suggest [the NFT report from Kraken](https://kraken.docsend.com/view/964aiz4n3y5dti3s). > > #Concerns > - The first negative that often comes to mind is probably the cost of minting and transferring NFTs. Small purchases, sales, and transactions can be costly for users. > > - However, this argument is usually specific to scalability issues of the Ethereum network, rather than NFTs broadly (which exist on or are planned for other chains, including BSC, Tezos, Solana, Cosmos, Cardano, Algorand etc.). > > - For the same reason, I would discount the other big negative that often gets mentioned - [environmental sustainability](https://www.theverge.com/2021/3/15/22328203/nft-cryptoart-ethereum-blockchain-climate-change) - which similarly conflates the environmental impact of NFTs with PoW chains. > > - I think more fundamental concerns around NFTs are that - in some cases - they are *not actually so trustless, permanent or scarce*, which undermines their premise and value proposition. > > - Issues like [spoofing, deceitful bidding](https://blog.mycrypto.com/common-nft-scams-to-avoid/) and [phishing](https://www.theverge.com/2022/2/20/22943228/opensea-phishing-hack-smart-contract-bug-stolen-nft) are certainly present with NFTs. Chainalysis recently posted an interesting report about the prevalence of [wash trading and money laundering in NFT markets](https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/). > > > - On the one hand, it's cool that the transparency of the blockchain allows anyone to trace this activity (more so than in traditional art markets). Like the case of[ Melania Trump's NFT sale](https://www.vice.com/en/article/m7vpx8/analyzing-the-very-bizarre-sale-of-melania-trumps-dollar170000-nft). Or trying to disentangle the [web of influence around celebrities buying NFTs](https://maxread.substack.com/p/mapping-the-celebrity-nft-complex). > > - But it also indicates that maybe the value of NFTs is less about digital scarcity/trustlessness and more about social engineering/manufactured hype. > > > - Other murky practices would be stuff like [sleepminting on Ethereum](https://timdaub.github.io/2021/04/22/nft-sleepminting-beeple-provenance/), which really undermines the purported authenticity and scarcity of NFTs: > > - For example, [Christie's auctioned an NFT by the artist Beeple for $69M](https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html) (nice). > > * [Monsieur Personne](https://nftheft.com/) then exploited the ERC-721 smart contract to display Beeple as the creator of a copied NFT at the protocol level. > > - [Additional exploits](https://blog.mycrypto.com/nft-smart-contract-bugs-exploits/) have included [brute force attacks to mint rare NFTs](https://iphelix.medium.com/meebit-nft-exploit-analysis-c9417b804f89) or using smart contracts to [bypass a sales cap, like with the Adidas NFT drop](https://twitter.com/Montana_Wong/status/1472023753865396227). > > - Lastly, there's a concern about the permanence and trustlessness of NFTs. An NFT typically points to a URL on the internet or an [IPFS](https://academy.binance.com/en/glossary/interplanetary-file-system-ipfs) hash. These then point not to the media itself, but to a JSON file hosted on a company's servers. > > > - [To take Beeple's $69M NFT as an example](https://twitter.com/jonty/status/1372163423446917122?lang=en), its [JSON metadata] (https://ipfs.io/ipfs/QmPAg1mjxcEQPPtqsLoEcauVedaeMH81WXDPvPx3VC5zUz) points us to an IPFS gateway run by http://makersplace.com. > > - So retaining access to this $69M investment depends on a company staying solvent and [keeping their IPFS gateway or centralized server running](https://www.theverge.com/2021/3/25/22349242/nft-metadata-explained-art-crypto-urls-links-ipfs). > > - Here's a [recent example of OpenSea serves going down](https://np.reddit.com/r/CryptoCurrency/comments/r5wavu\/opensea_was_down_and_users_have_been_freaking_out/). > > - There is also a risk of ['link rot'](https://en.wikipedia.org/wiki/Link_rot) > > - Or, imagine a scenario in which the gateway operator runs out of capital or even goes bust. Could there be a blackmail situation where a third party scoops up the domain and ransoms access to your NFT assets? > > - Worth mentioning that this doesn't apply to all NFTs and some groups are trying to advocate a more permanent storage solution, like [Arweave](https://www.arweave.org/). ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6sviv/general_concepts_round_nft_conarguments_december/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_NFT) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/vpazdp/monthly_optimists_discussion_july_2022/).

confusedguy1212

Is there any other crypto in the whole space that is investing the kind of research ETH community is investing both in person-hours as well as money? If the answer is a VC backed corporation calling themselves a crypto-coin that answer doesn't count

bboybrisk

LOL, crypto isn’t about finding projects that will net you 100x. If you’re even considering any form of “x” multiplier than your not in it for crypto/tech, you’re in it for financial reasons. Don’t kid yourself like you actually are interested in the underlying blockchains more so than becoming rich. Which your comment heavily implies here. Finding a coin that will 20x next cycle isn’t easy at all. Most that made ATH’s this past bull-run will never hit those prices again. Also, the coins that WILL 20-100x probably don’t even exist yet and you won’t have access to early presales like VC’s.l because you have nothing to offer them. Majority are much better off DCA’ing into ETH and BTC during bear markets and DCA’ing out during bullruns, than trying to knife catch shitcoins with no use case or consistent revenue streams behind the companies running their project.

CointestAdmin

#NFT Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the NFT Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Updated from [my previous entry here](https://np.reddit.com/r/CryptoCurrency/comments/pfoo0a/rcc_cointest_general_concepts_nft_conarguments/hd7ew7q/): > > *Disclaimer: I don't currently hold any NFTs nor have I ever minted or speculated on them* > > #NFTs explained > > - One of BTC's original innovations was [digital scarcity](https://policyreview.info/glossary/digital-scarcity). > > - NFTs inherit this innovation - however, unlike BTC or other cryptocurrencies, NFTs are 'non fungible'. 1 BTC is ([ideally](https://sethsimmons.me/posts/fungibility-graveyard/)) interchangeable for another BTC, but 1 NFT =/= another NFT. > > - As NFTs aren’t interchangeable with each other, we've seen interest explode over the past year with usecases related to proof of authenticity and ownership. > > - For more reading, I'd highly suggest [the NFT report from Kraken](https://kraken.docsend.com/view/964aiz4n3y5dti3s). > > #Concerns > - The first negative that often comes to mind is probably the cost of minting and transferring NFTs. Small purchases, sales, and transactions can be costly for users. > > - However, this argument is usually specific to scalability issues of the Ethereum network, rather than NFTs broadly (which exist on or are planned for other chains, including BSC, Tezos, Solana, Cosmos, Cardano, Algorand etc.). > > - For the same reason, I would discount the other big negative that often gets mentioned - [environmental sustainability](https://www.theverge.com/2021/3/15/22328203/nft-cryptoart-ethereum-blockchain-climate-change) - which similarly conflates the environmental impact of NFTs with PoW chains. > > - I think more fundamental concerns around NFTs are that - in some cases - they are *not actually so trustless, permanent or scarce*, which undermines their premise and value proposition. > > - Issues like [spoofing, deceitful bidding](https://blog.mycrypto.com/common-nft-scams-to-avoid/) and [phishing](https://www.theverge.com/2022/2/20/22943228/opensea-phishing-hack-smart-contract-bug-stolen-nft) are certainly present with NFTs. Chainalysis recently posted an interesting report about the prevalence of [wash trading and money laundering in NFT markets](https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/). > > > - On the one hand, it's cool that the transparency of the blockchain allows anyone to trace this activity (more so than in traditional art markets). Like the case of[ Melania Trump's NFT sale](https://www.vice.com/en/article/m7vpx8/analyzing-the-very-bizarre-sale-of-melania-trumps-dollar170000-nft). Or trying to disentangle the [web of influence around celebrities buying NFTs](https://maxread.substack.com/p/mapping-the-celebrity-nft-complex). > > - But it also indicates that maybe the value of NFTs is less about digital scarcity/trustlessness and more about social engineering/manufactured hype. > > > - Other murky practices would be stuff like [sleepminting on Ethereum](https://timdaub.github.io/2021/04/22/nft-sleepminting-beeple-provenance/), which really undermines the purported authenticity and scarcity of NFTs: > > - For example, [Christie's auctioned an NFT by the artist Beeple for $69M](https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html) (nice). > > * [Monsieur Personne](https://nftheft.com/) then exploited the ERC-721 smart contract to display Beeple as the creator of a copied NFT at the protocol level. > > - [Additional exploits](https://blog.mycrypto.com/nft-smart-contract-bugs-exploits/) have included [brute force attacks to mint rare NFTs](https://iphelix.medium.com/meebit-nft-exploit-analysis-c9417b804f89) or using smart contracts to [bypass a sales cap, like with the Adidas NFT drop](https://twitter.com/Montana_Wong/status/1472023753865396227). > > - Lastly, there's a concern about the permanence and trustlessness of NFTs. An NFT typically points to a URL on the internet or an [IPFS](https://academy.binance.com/en/glossary/interplanetary-file-system-ipfs) hash. These then point not to the media itself, but to a JSON file hosted on a company's servers. > > > - [To take Beeple's $69M NFT as an example](https://twitter.com/jonty/status/1372163423446917122?lang=en), its [JSON metadata] (https://ipfs.io/ipfs/QmPAg1mjxcEQPPtqsLoEcauVedaeMH81WXDPvPx3VC5zUz) points us to an IPFS gateway run by http://makersplace.com. > > - So retaining access to this $69M investment depends on a company staying solvent and [keeping their IPFS gateway or centralized server running](https://www.theverge.com/2021/3/25/22349242/nft-metadata-explained-art-crypto-urls-links-ipfs). > > - Here's a [recent example of OpenSea serves going down](https://np.reddit.com/r/CryptoCurrency/comments/r5wavu\/opensea_was_down_and_users_have_been_freaking_out/). > > - There is also a risk of ['link rot'](https://en.wikipedia.org/wiki/Link_rot) > > - Or, imagine a scenario in which the gateway operator runs out of capital or even goes bust. Could there be a blackmail situation where a third party scoops up the domain and ransoms access to your NFT assets? > > - Worth mentioning that this doesn't apply to all NFTs and some groups are trying to advocate a more permanent storage solution, like [Arweave](https://www.arweave.org/). ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6sviv/general_concepts_round_nft_conarguments_december/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_NFT) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/vpazdp/monthly_optimists_discussion_july_2022/).

Optimal_Store

I’ll give you pretty big use-case for Cardano at the moment. We have a funding mechanism where a portion of the fees are sent to a treasury and managed by the community on Catalyst. This is essentially a decentralized VC fund worth close to a $1 billion at the moment. Aspiring projects make a proposal on Catalyst and request the amount they need. Then the community votes on it after detailed discussions

_Stealthy

Ah JP Morgan, one of the "VC's" that has their fingers in the most marketed and funded bull*shit* out there. Expert market manipulators and market makers based on nothing but hot air.

LightninHooker

Tomorrow GLMR (Moonbeam) will have another unlock from Seed and Strategic. So dump will come... those guys(VC) bought really cheap so surely enough will be taking profits

danhauk

… that we know of. But that’s part of the investment game. VC investors fail a lot. The hope is that 1/10 successful investment covers the losses of the other 9/10.

ndgoLiberty

Sorry for your loss. Good luck with bCash. Global accepted alternative money protocol > VC funded GitHub fork

tldrthestoryofmylife

Bitcoin was the first great bastion of decentralization, but it's just a push/pull effect; you can't do anything other than send and receive coins. The next great discovery, along with NFTs, was smart contracts for lending+borrowing, which basically means that you can automate and decentralize the role of a maker in a credit market. That's what made Ethereum so popular. Problem is, Ethereum in its current form can't really scale, and everyone and their grandmother claims to have a way around that. This bear market and other that'll come after are just about figuring out which ones actually solve the fundamental problems of decentralization, security, and scalability, and which ones survive purely on bull market VC funding.

KineticNTT

Telos had the most fair launch. No ICO or VC money, fully community backed, and very well decentralized. Beats any other project I’ve seen.

CointestAdmin

#NFT Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the NFT Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Updated from [my previous entry here](https://np.reddit.com/r/CryptoCurrency/comments/pfoo0a/rcc_cointest_general_concepts_nft_conarguments/hd7ew7q/): > > *Disclaimer: I don't currently hold any NFTs nor have I ever minted or speculated on them* > > #NFTs explained > > - One of BTC's original innovations was [digital scarcity](https://policyreview.info/glossary/digital-scarcity). > > - NFTs inherit this innovation - however, unlike BTC or other cryptocurrencies, NFTs are 'non fungible'. 1 BTC is ([ideally](https://sethsimmons.me/posts/fungibility-graveyard/)) interchangeable for another BTC, but 1 NFT =/= another NFT. > > - As NFTs aren’t interchangeable with each other, we've seen interest explode over the past year with usecases related to proof of authenticity and ownership. > > - For more reading, I'd highly suggest [the NFT report from Kraken](https://kraken.docsend.com/view/964aiz4n3y5dti3s). > > #Concerns > - The first negative that often comes to mind is probably the cost of minting and transferring NFTs. Small purchases, sales, and transactions can be costly for users. > > - However, this argument is usually specific to scalability issues of the Ethereum network, rather than NFTs broadly (which exist on or are planned for other chains, including BSC, Tezos, Solana, Cosmos, Cardano, Algorand etc.). > > - For the same reason, I would discount the other big negative that often gets mentioned - [environmental sustainability](https://www.theverge.com/2021/3/15/22328203/nft-cryptoart-ethereum-blockchain-climate-change) - which similarly conflates the environmental impact of NFTs with PoW chains. > > - I think more fundamental concerns around NFTs are that - in some cases - they are *not actually so trustless, permanent or scarce*, which undermines their premise and value proposition. > > - Issues like [spoofing, deceitful bidding](https://blog.mycrypto.com/common-nft-scams-to-avoid/) and [phishing](https://www.theverge.com/2022/2/20/22943228/opensea-phishing-hack-smart-contract-bug-stolen-nft) are certainly present with NFTs. Chainalysis recently posted an interesting report about the prevalence of [wash trading and money laundering in NFT markets](https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/). > > > - On the one hand, it's cool that the transparency of the blockchain allows anyone to trace this activity (more so than in traditional art markets). Like the case of[ Melania Trump's NFT sale](https://www.vice.com/en/article/m7vpx8/analyzing-the-very-bizarre-sale-of-melania-trumps-dollar170000-nft). Or trying to disentangle the [web of influence around celebrities buying NFTs](https://maxread.substack.com/p/mapping-the-celebrity-nft-complex). > > - But it also indicates that maybe the value of NFTs is less about digital scarcity/trustlessness and more about social engineering/manufactured hype. > > > - Other murky practices would be stuff like [sleepminting on Ethereum](https://timdaub.github.io/2021/04/22/nft-sleepminting-beeple-provenance/), which really undermines the purported authenticity and scarcity of NFTs: > > - For example, [Christie's auctioned an NFT by the artist Beeple for $69M](https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html) (nice). > > * [Monsieur Personne](https://nftheft.com/) then exploited the ERC-721 smart contract to display Beeple as the creator of a copied NFT at the protocol level. > > - [Additional exploits](https://blog.mycrypto.com/nft-smart-contract-bugs-exploits/) have included [brute force attacks to mint rare NFTs](https://iphelix.medium.com/meebit-nft-exploit-analysis-c9417b804f89) or using smart contracts to [bypass a sales cap, like with the Adidas NFT drop](https://twitter.com/Montana_Wong/status/1472023753865396227). > > - Lastly, there's a concern about the permanence and trustlessness of NFTs. An NFT typically points to a URL on the internet or an [IPFS](https://academy.binance.com/en/glossary/interplanetary-file-system-ipfs) hash. These then point not to the media itself, but to a JSON file hosted on a company's servers. > > > - [To take Beeple's $69M NFT as an example](https://twitter.com/jonty/status/1372163423446917122?lang=en), its [JSON metadata] (https://ipfs.io/ipfs/QmPAg1mjxcEQPPtqsLoEcauVedaeMH81WXDPvPx3VC5zUz) points us to an IPFS gateway run by http://makersplace.com. > > - So retaining access to this $69M investment depends on a company staying solvent and [keeping their IPFS gateway or centralized server running](https://www.theverge.com/2021/3/25/22349242/nft-metadata-explained-art-crypto-urls-links-ipfs). > > - Here's a [recent example of OpenSea serves going down](https://np.reddit.com/r/CryptoCurrency/comments/r5wavu\/opensea_was_down_and_users_have_been_freaking_out/). > > - There is also a risk of ['link rot'](https://en.wikipedia.org/wiki/Link_rot) > > - Or, imagine a scenario in which the gateway operator runs out of capital or even goes bust. Could there be a blackmail situation where a third party scoops up the domain and ransoms access to your NFT assets? > > - Worth mentioning that this doesn't apply to all NFTs and some groups are trying to advocate a more permanent storage solution, like [Arweave](https://www.arweave.org/). ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6sviv/general_concepts_round_nft_conarguments_december/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_NFT) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/vpazdp/monthly_optimists_discussion_july_2022/).

reddit_1999

Yep. Scammy VC shilled DOGSHIT.

Rusty_Charm

I really feel bad for that community. I know a lot of people who thought they were safe sitting in BTC and USDC on Harmony and they’ve basically lost all their money. I don’t think this can even be repaired: Option 1: VC infuses $100 mil in cash to repeg the assets. Highly unlikely given the current climate, and if there was a VC out there looking to invest $100 mil, I don’t think they’d do it with the project that just lost $100 mil. Option 2: retrieve the funds from the hackers Never gonna happen… Option 3: Harmony uses its own treasury I doubt that Harmony even has $100 mil in the treasury. If they do, it’s probably significantly in ONE, meaning they’d have to sell it, which would cause the price to completely crash. Not all projects make it out of a bear market and at this point, the odds are against Harmony.

MaximumStudent1839

Centralized systems can go even faster. The question is why is SOL designed as a crypto? It is just a VC marketing gimmick to pump and dump?

MaximumStudent1839

VC already brought at ridiculously cheap price. They can dump on retailers, not the other way round. VC never buy late into the game. So happy bagholding!

slepyhed

The things you're missing is that when you put your money in their hands, is not longer legally your money, it's theirs. And they owe it to you, just like they owe it to the banks/VC's/hedge funds. But the banks/VC's/hedge funds have dibs, so to speak.

ScientificBeastMode

I guess if they shit on a top-tier blockchain ferociously enough, then maybe, just maybe, everyone will ditch it and pile into their favorite small-cap altcoin and make them rich… It’s a silly game. But my money is where the VC money wants to go, not where the Reddit plebs have staked their moral boundaries or whatever…

CointestAdmin

#NFT Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the NFT Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Updated from [my previous entry here](https://np.reddit.com/r/CryptoCurrency/comments/pfoo0a/rcc_cointest_general_concepts_nft_conarguments/hd7ew7q/): > > *Disclaimer: I don't currently hold any NFTs nor have I ever minted or speculated on them* > > #NFTs explained > > - One of BTC's original innovations was [digital scarcity](https://policyreview.info/glossary/digital-scarcity). > > - NFTs inherit this innovation - however, unlike BTC or other cryptocurrencies, NFTs are 'non fungible'. 1 BTC is ([ideally](https://sethsimmons.me/posts/fungibility-graveyard/)) interchangeable for another BTC, but 1 NFT =/= another NFT. > > - As NFTs aren’t interchangeable with each other, we've seen interest explode over the past year with usecases related to proof of authenticity and ownership. > > - For more reading, I'd highly suggest [the NFT report from Kraken](https://kraken.docsend.com/view/964aiz4n3y5dti3s). > > #Concerns > - The first negative that often comes to mind is probably the cost of minting and transferring NFTs. Small purchases, sales, and transactions can be costly for users. > > - However, this argument is usually specific to scalability issues of the Ethereum network, rather than NFTs broadly (which exist on or are planned for other chains, including BSC, Tezos, Solana, Cosmos, Cardano, Algorand etc.). > > - For the same reason, I would discount the other big negative that often gets mentioned - [environmental sustainability](https://www.theverge.com/2021/3/15/22328203/nft-cryptoart-ethereum-blockchain-climate-change) - which similarly conflates the environmental impact of NFTs with PoW chains. > > - I think more fundamental concerns around NFTs are that - in some cases - they are *not actually so trustless, permanent or scarce*, which undermines their premise and value proposition. > > - Issues like [spoofing, deceitful bidding](https://blog.mycrypto.com/common-nft-scams-to-avoid/) and [phishing](https://www.theverge.com/2022/2/20/22943228/opensea-phishing-hack-smart-contract-bug-stolen-nft) are certainly present with NFTs. Chainalysis recently posted an interesting report about the prevalence of [wash trading and money laundering in NFT markets](https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/). > > > - On the one hand, it's cool that the transparency of the blockchain allows anyone to trace this activity (more so than in traditional art markets). Like the case of[ Melania Trump's NFT sale](https://www.vice.com/en/article/m7vpx8/analyzing-the-very-bizarre-sale-of-melania-trumps-dollar170000-nft). Or trying to disentangle the [web of influence around celebrities buying NFTs](https://maxread.substack.com/p/mapping-the-celebrity-nft-complex). > > - But it also indicates that maybe the value of NFTs is less about digital scarcity/trustlessness and more about social engineering/manufactured hype. > > > - Other murky practices would be stuff like [sleepminting on Ethereum](https://timdaub.github.io/2021/04/22/nft-sleepminting-beeple-provenance/), which really undermines the purported authenticity and scarcity of NFTs: > > - For example, [Christie's auctioned an NFT by the artist Beeple for $69M](https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html) (nice). > > * [Monsieur Personne](https://nftheft.com/) then exploited the ERC-721 smart contract to display Beeple as the creator of a copied NFT at the protocol level. > > - [Additional exploits](https://blog.mycrypto.com/nft-smart-contract-bugs-exploits/) have included [brute force attacks to mint rare NFTs](https://iphelix.medium.com/meebit-nft-exploit-analysis-c9417b804f89) or using smart contracts to [bypass a sales cap, like with the Adidas NFT drop](https://twitter.com/Montana_Wong/status/1472023753865396227). > > - Lastly, there's a concern about the permanence and trustlessness of NFTs. An NFT typically points to a URL on the internet or an [IPFS](https://academy.binance.com/en/glossary/interplanetary-file-system-ipfs) hash. These then point not to the media itself, but to a JSON file hosted on a company's servers. > > > - [To take Beeple's $69M NFT as an example](https://twitter.com/jonty/status/1372163423446917122?lang=en), its [JSON metadata] (https://ipfs.io/ipfs/QmPAg1mjxcEQPPtqsLoEcauVedaeMH81WXDPvPx3VC5zUz) points us to an IPFS gateway run by http://makersplace.com. > > - So retaining access to this $69M investment depends on a company staying solvent and [keeping their IPFS gateway or centralized server running](https://www.theverge.com/2021/3/25/22349242/nft-metadata-explained-art-crypto-urls-links-ipfs). > > - Here's a [recent example of OpenSea serves going down](https://np.reddit.com/r/CryptoCurrency/comments/r5wavu\/opensea_was_down_and_users_have_been_freaking_out/). > > - There is also a risk of ['link rot'](https://en.wikipedia.org/wiki/Link_rot) > > - Or, imagine a scenario in which the gateway operator runs out of capital or even goes bust. Could there be a blackmail situation where a third party scoops up the domain and ransoms access to your NFT assets? > > - Worth mentioning that this doesn't apply to all NFTs and some groups are trying to advocate a more permanent storage solution, like [Arweave](https://www.arweave.org/). ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6sviv/general_concepts_round_nft_conarguments_december/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_NFT) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/vpazdp/monthly_optimists_discussion_july_2022/).

squidling_pie

It was beautiful... I thought when the 90% got released it'd dump. But the VC's just kept buying upthe remaining tokens and then unloading began at $240 A masterfully executed money grab. The best part is its just a sql database.

moldyjellybean

The closest thing to Bitcoin is Dogecoin. 1) no real premine 2) creator didn’t make it to get rich 3) creator left the project and it gained more traction for 9+ years 4)no VC 5) percentage wise btc mined is 2% inflation for another 20 years Doge is less than 4%, no vesting or unlock billions of coins unlocking all at 1 time 6) both are POW, not printed out of thin air or ICO 7) both have never stopped 8) both have the largest community in crypto My guess is Btc and Doge out survives every other crypto and they both break their previous ath at the next halving

CryptoMutantSelfie

I didn’t even make any points. Look at how much of the supply the early VC investors bought, Algo and Sol are just massive pump and dumps.

CryptoMutantSelfie

Solana, Algo, Avalanche, all these centralized low-fee platforms are just massive pump and dumps on a longer time frame. It’s very clear when you see how much of the supply the early VC investors got.

CointestAdmin

#NFT Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the NFT Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Updated from [my previous entry here](https://np.reddit.com/r/CryptoCurrency/comments/pfoo0a/rcc_cointest_general_concepts_nft_conarguments/hd7ew7q/): > > *Disclaimer: I don't currently hold any NFTs nor have I ever minted or speculated on them* > > #NFTs explained > > - One of BTC's original innovations was [digital scarcity](https://policyreview.info/glossary/digital-scarcity). > > - NFTs inherit this innovation - however, unlike BTC or other cryptocurrencies, NFTs are 'non fungible'. 1 BTC is ([ideally](https://sethsimmons.me/posts/fungibility-graveyard/)) interchangeable for another BTC, but 1 NFT =/= another NFT. > > - As NFTs aren’t interchangeable with each other, we've seen interest explode over the past year with usecases related to proof of authenticity and ownership. > > - For more reading, I'd highly suggest [the NFT report from Kraken](https://kraken.docsend.com/view/964aiz4n3y5dti3s). > > #Concerns > - The first negative that often comes to mind is probably the cost of minting and transferring NFTs. Small purchases, sales, and transactions can be costly for users. > > - However, this argument is usually specific to scalability issues of the Ethereum network, rather than NFTs broadly (which exist on or are planned for other chains, including BSC, Tezos, Solana, Cosmos, Cardano, Algorand etc.). > > - For the same reason, I would discount the other big negative that often gets mentioned - [environmental sustainability](https://www.theverge.com/2021/3/15/22328203/nft-cryptoart-ethereum-blockchain-climate-change) - which similarly conflates the environmental impact of NFTs with PoW chains. > > - I think more fundamental concerns around NFTs are that - in some cases - they are *not actually so trustless, permanent or scarce*, which undermines their premise and value proposition. > > - Issues like [spoofing, deceitful bidding](https://blog.mycrypto.com/common-nft-scams-to-avoid/) and [phishing](https://www.theverge.com/2022/2/20/22943228/opensea-phishing-hack-smart-contract-bug-stolen-nft) are certainly present with NFTs. Chainalysis recently posted an interesting report about the prevalence of [wash trading and money laundering in NFT markets](https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/). > > > - On the one hand, it's cool that the transparency of the blockchain allows anyone to trace this activity (more so than in traditional art markets). Like the case of[ Melania Trump's NFT sale](https://www.vice.com/en/article/m7vpx8/analyzing-the-very-bizarre-sale-of-melania-trumps-dollar170000-nft). Or trying to disentangle the [web of influence around celebrities buying NFTs](https://maxread.substack.com/p/mapping-the-celebrity-nft-complex). > > - But it also indicates that maybe the value of NFTs is less about digital scarcity/trustlessness and more about social engineering/manufactured hype. > > > - Other murky practices would be stuff like [sleepminting on Ethereum](https://timdaub.github.io/2021/04/22/nft-sleepminting-beeple-provenance/), which really undermines the purported authenticity and scarcity of NFTs: > > - For example, [Christie's auctioned an NFT by the artist Beeple for $69M](https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html) (nice). > > * [Monsieur Personne](https://nftheft.com/) then exploited the ERC-721 smart contract to display Beeple as the creator of a copied NFT at the protocol level. > > - [Additional exploits](https://blog.mycrypto.com/nft-smart-contract-bugs-exploits/) have included [brute force attacks to mint rare NFTs](https://iphelix.medium.com/meebit-nft-exploit-analysis-c9417b804f89) or using smart contracts to [bypass a sales cap, like with the Adidas NFT drop](https://twitter.com/Montana_Wong/status/1472023753865396227). > > - Lastly, there's a concern about the permanence and trustlessness of NFTs. An NFT typically points to a URL on the internet or an [IPFS](https://academy.binance.com/en/glossary/interplanetary-file-system-ipfs) hash. These then point not to the media itself, but to a JSON file hosted on a company's servers. > > > - [To take Beeple's $69M NFT as an example](https://twitter.com/jonty/status/1372163423446917122?lang=en), its [JSON metadata] (https://ipfs.io/ipfs/QmPAg1mjxcEQPPtqsLoEcauVedaeMH81WXDPvPx3VC5zUz) points us to an IPFS gateway run by http://makersplace.com. > > - So retaining access to this $69M investment depends on a company staying solvent and [keeping their IPFS gateway or centralized server running](https://www.theverge.com/2021/3/25/22349242/nft-metadata-explained-art-crypto-urls-links-ipfs). > > - Here's a [recent example of OpenSea serves going down](https://np.reddit.com/r/CryptoCurrency/comments/r5wavu\/opensea_was_down_and_users_have_been_freaking_out/). > > - There is also a risk of ['link rot'](https://en.wikipedia.org/wiki/Link_rot) > > - Or, imagine a scenario in which the gateway operator runs out of capital or even goes bust. Could there be a blackmail situation where a third party scoops up the domain and ransoms access to your NFT assets? > > - Worth mentioning that this doesn't apply to all NFTs and some groups are trying to advocate a more permanent storage solution, like [Arweave](https://www.arweave.org/). ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6sviv/general_concepts_round_nft_conarguments_december/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_NFT) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/vpazdp/monthly_optimists_discussion_july_2022/).

ajnsd619

This may be an unpopular opinion, but that article is largely opinion-based. I'm on bear market #2. A large number of investors emerged from crypto winter to later see our holdings go 34X+ as Ethereum holders. Bitcoin is far too narrow an investment choice for people now several years in the space. After about your 2nd year in crypto, you must start seeking on-chain opportunities. Bitcoin simply doesn't have an environment to make that possible for you. Bull markets make you money, but bears offer you the opportunity to position yourself for lifelong wealth. Presently, there are astonishing amounts of capital being invested in web3 development. That's where your next opportunities are. Your best opportunities in crypto have left the market and are now focused almost entirely on-chain. \--Andreessen Horowitz announced a $4.5 billion crypto fund targeted for web3. \--Flow launched a **$725 million** Ecosystem Fund backed by Web 3 VC firms. \--Binance Labs announced a $500 million fund to invest in Web3 startups. \--A16z’s $4.5 billion crypto fund came shortly after its $600 million gaming fund. \--NGC Ventures launched a $100 million fund to focus on DeFi, & NFTs. \--Sfermion raised $100 million to invest in NFTs designed for blockchain games. \--KuCoin Ventures invested in Joyride Co as part of its $100 million Creators Fund \--Fabric Ventures announced the final close of its $140 million fund alongside the first close of its $100 million new Web 3 Growth Fund Despite the bear market, venture capital firms invested **$3.6 billion in Web3** **projects in June.** [https://beincrypto.com/web3-and-cefi-venture-funding-topped-3-6b-in-june/](https://beincrypto.com/web3-and-cefi-venture-funding-topped-3-6b-in-june/) $3.6 Billion in a single month. This is all during a bear market. I found my on-chain opportunity with Ethereum Name Service. I now only use Ether to buy domain name assets. But I build my own portfolio, negotiate on web3 markets, and manage it like any other business. I've sold 96 domains in six months. If you want to learn more about this, but question it, I'll gladly post my sales stats with identifying info redacted. Im not suggesting you do exactly this. But I do urge you to research on-chain opportunities. I promise you an investment in your time each week will pay off far more than investing your money. All of the funds I listed above will be building on-chain and creating opportunity. Don't sell yourself short. I came from the most analog business sector there is. Prior to crypto, I was a corporate contract analyst for State Farm Insurance. All I did was read, interpret, and re-write paperwork. When our computers went down, all I needed was a notepad and pen to keep working. If I made the jump, anybody can. Best of luck to you.

hiredgoon

The coins backed by VC firms while having multibillion market caps, shallow ecosystems and low usage.

CointestAdmin

#NFT Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the NFT Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Updated from [my previous entry here](https://np.reddit.com/r/CryptoCurrency/comments/pfoo0a/rcc_cointest_general_concepts_nft_conarguments/hd7ew7q/): > > *Disclaimer: I don't currently hold any NFTs nor have I ever minted or speculated on them* > > #NFTs explained > > - One of BTC's original innovations was [digital scarcity](https://policyreview.info/glossary/digital-scarcity). > > - NFTs inherit this innovation - however, unlike BTC or other cryptocurrencies, NFTs are 'non fungible'. 1 BTC is ([ideally](https://sethsimmons.me/posts/fungibility-graveyard/)) interchangeable for another BTC, but 1 NFT =/= another NFT. > > - As NFTs aren’t interchangeable with each other, we've seen interest explode over the past year with usecases related to proof of authenticity and ownership. > > - For more reading, I'd highly suggest [the NFT report from Kraken](https://kraken.docsend.com/view/964aiz4n3y5dti3s). > > #Concerns > - The first negative that often comes to mind is probably the cost of minting and transferring NFTs. Small purchases, sales, and transactions can be costly for users. > > - However, this argument is usually specific to scalability issues of the Ethereum network, rather than NFTs broadly (which exist on or are planned for other chains, including BSC, Tezos, Solana, Cosmos, Cardano, Algorand etc.). > > - For the same reason, I would discount the other big negative that often gets mentioned - [environmental sustainability](https://www.theverge.com/2021/3/15/22328203/nft-cryptoart-ethereum-blockchain-climate-change) - which similarly conflates the environmental impact of NFTs with PoW chains. > > - I think more fundamental concerns around NFTs are that - in some cases - they are *not actually so trustless, permanent or scarce*, which undermines their premise and value proposition. > > - Issues like [spoofing, deceitful bidding](https://blog.mycrypto.com/common-nft-scams-to-avoid/) and [phishing](https://www.theverge.com/2022/2/20/22943228/opensea-phishing-hack-smart-contract-bug-stolen-nft) are certainly present with NFTs. Chainalysis recently posted an interesting report about the prevalence of [wash trading and money laundering in NFT markets](https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/). > > > - On the one hand, it's cool that the transparency of the blockchain allows anyone to trace this activity (more so than in traditional art markets). Like the case of[ Melania Trump's NFT sale](https://www.vice.com/en/article/m7vpx8/analyzing-the-very-bizarre-sale-of-melania-trumps-dollar170000-nft). Or trying to disentangle the [web of influence around celebrities buying NFTs](https://maxread.substack.com/p/mapping-the-celebrity-nft-complex). > > - But it also indicates that maybe the value of NFTs is less about digital scarcity/trustlessness and more about social engineering/manufactured hype. > > > - Other murky practices would be stuff like [sleepminting on Ethereum](https://timdaub.github.io/2021/04/22/nft-sleepminting-beeple-provenance/), which really undermines the purported authenticity and scarcity of NFTs: > > - For example, [Christie's auctioned an NFT by the artist Beeple for $69M](https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html) (nice). > > * [Monsieur Personne](https://nftheft.com/) then exploited the ERC-721 smart contract to display Beeple as the creator of a copied NFT at the protocol level. > > - [Additional exploits](https://blog.mycrypto.com/nft-smart-contract-bugs-exploits/) have included [brute force attacks to mint rare NFTs](https://iphelix.medium.com/meebit-nft-exploit-analysis-c9417b804f89) or using smart contracts to [bypass a sales cap, like with the Adidas NFT drop](https://twitter.com/Montana_Wong/status/1472023753865396227). > > - Lastly, there's a concern about the permanence and trustlessness of NFTs. An NFT typically points to a URL on the internet or an [IPFS](https://academy.binance.com/en/glossary/interplanetary-file-system-ipfs) hash. These then point not to the media itself, but to a JSON file hosted on a company's servers. > > > - [To take Beeple's $69M NFT as an example](https://twitter.com/jonty/status/1372163423446917122?lang=en), its [JSON metadata] (https://ipfs.io/ipfs/QmPAg1mjxcEQPPtqsLoEcauVedaeMH81WXDPvPx3VC5zUz) points us to an IPFS gateway run by http://makersplace.com. > > - So retaining access to this $69M investment depends on a company staying solvent and [keeping their IPFS gateway or centralized server running](https://www.theverge.com/2021/3/25/22349242/nft-metadata-explained-art-crypto-urls-links-ipfs). > > - Here's a [recent example of OpenSea serves going down](https://np.reddit.com/r/CryptoCurrency/comments/r5wavu\/opensea_was_down_and_users_have_been_freaking_out/). > > - There is also a risk of ['link rot'](https://en.wikipedia.org/wiki/Link_rot) > > - Or, imagine a scenario in which the gateway operator runs out of capital or even goes bust. Could there be a blackmail situation where a third party scoops up the domain and ransoms access to your NFT assets? > > - Worth mentioning that this doesn't apply to all NFTs and some groups are trying to advocate a more permanent storage solution, like [Arweave](https://www.arweave.org/). ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6sviv/general_concepts_round_nft_conarguments_december/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_NFT) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/vpazdp/monthly_optimists_discussion_july_2022/).

bitsconnect

VC and various government investments into this “privacy” coin.

RewtDooDoo

People got too excited at the sounds of VC money and signed some garbage deals which came back to bite.

gtjacket82

Thanks. And I am glad people are asking these questions because like a lot of things - it’s complicated. I keep up with crypto, buttcoin, and traditional fi subs because echo chambers are dangerous. A lot of people are losing money in scams and other over leveraged, poorly managed projects. I feel like I’ve heard it a lot - bull markets are just gung ho, invest in anything and make money… bear markets can bring out good discussion and clear out the bad projects. But there are people who fall victim and lose a tremendous amount of money. Some of the people posting losses is absolutely wild. I don’t believe crypto - which isn’t a singular entity anyway - exists just as a scam, but the Wild West nature where anyone can mint a coin with X supply is not sustainable. But, then is regulation really the answer? That depends on who is writing the rules. Who even gets to decide what good projects look like - is it just more big VC groups (rich people) or banks doing what they want? Will anything actually change…? It is complicated and unfortunately not everyone sees that. Even if it seems like a good company with good intentions - taking blatant scams away - those companies can still just get themselves messed up with leverage. But this happens in traditional finance too - Lehman Bros, Bear sterns, etc. I just hope people are careful out there - diversify.

igadjeed

> that Coinbase letter stating that they would take everyone's crypto and give it to the VC firms and banks if they went bankrupt It doesn't say that. It clarifies that coins in an account are the exchange's assets, not like a bank account. Your money in a bank account is your money held in trust, not part of the bank's assets It's important for a cryptocurrency exchange to explain that it's not a bank. This Coinbase note is not special to Coinbase. The same asset principles apply equally to all exchanges. As a publicly-traded corporation, Coinbase has higher disclosure requirements > Kraken was my safe space because they have a bank license You made a naive assumption. When Kraken acquired a small bank to get that license, I dug deeper, to find out why Kraken had a problem getting a proper banking service in the USA. For a long time, American users could only send USD to Kraken by Wire, not ACH. After wasting months knocking on doors looking for a friendly bank (so their customers could send ACH transfers), Kraken bought their own bank to get access to the ACH system This doesn't make them safer. It just means their American customers can now use ACH transfers --- To the question In this forum, for at least 6 years, we have been repeating the mantra "not your keys, not your coins". This means that users should buy Bitcoin on an exchange, and withdraw that Bitcoin to a personal wallet immediately It does not mean, "oh dear Celsius and Voyager are in bankruptcy I have to stop using exchanges" Get a personal wallet. They're free

CointestAdmin

#NFT Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the NFT Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Updated from [my previous entry here](https://np.reddit.com/r/CryptoCurrency/comments/pfoo0a/rcc_cointest_general_concepts_nft_conarguments/hd7ew7q/): > > *Disclaimer: I don't currently hold any NFTs nor have I ever minted or speculated on them* > > #NFTs explained > > - One of BTC's original innovations was [digital scarcity](https://policyreview.info/glossary/digital-scarcity). > > - NFTs inherit this innovation - however, unlike BTC or other cryptocurrencies, NFTs are 'non fungible'. 1 BTC is ([ideally](https://sethsimmons.me/posts/fungibility-graveyard/)) interchangeable for another BTC, but 1 NFT =/= another NFT. > > - As NFTs aren’t interchangeable with each other, we've seen interest explode over the past year with usecases related to proof of authenticity and ownership. > > - For more reading, I'd highly suggest [the NFT report from Kraken](https://kraken.docsend.com/view/964aiz4n3y5dti3s). > > #Concerns > - The first negative that often comes to mind is probably the cost of minting and transferring NFTs. Small purchases, sales, and transactions can be costly for users. > > - However, this argument is usually specific to scalability issues of the Ethereum network, rather than NFTs broadly (which exist on or are planned for other chains, including BSC, Tezos, Solana, Cosmos, Cardano, Algorand etc.). > > - For the same reason, I would discount the other big negative that often gets mentioned - [environmental sustainability](https://www.theverge.com/2021/3/15/22328203/nft-cryptoart-ethereum-blockchain-climate-change) - which similarly conflates the environmental impact of NFTs with PoW chains. > > - I think more fundamental concerns around NFTs are that - in some cases - they are *not actually so trustless, permanent or scarce*, which undermines their premise and value proposition. > > - Issues like [spoofing, deceitful bidding](https://blog.mycrypto.com/common-nft-scams-to-avoid/) and [phishing](https://www.theverge.com/2022/2/20/22943228/opensea-phishing-hack-smart-contract-bug-stolen-nft) are certainly present with NFTs. Chainalysis recently posted an interesting report about the prevalence of [wash trading and money laundering in NFT markets](https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/). > > > - On the one hand, it's cool that the transparency of the blockchain allows anyone to trace this activity (more so than in traditional art markets). Like the case of[ Melania Trump's NFT sale](https://www.vice.com/en/article/m7vpx8/analyzing-the-very-bizarre-sale-of-melania-trumps-dollar170000-nft). Or trying to disentangle the [web of influence around celebrities buying NFTs](https://maxread.substack.com/p/mapping-the-celebrity-nft-complex). > > - But it also indicates that maybe the value of NFTs is less about digital scarcity/trustlessness and more about social engineering/manufactured hype. > > > - Other murky practices would be stuff like [sleepminting on Ethereum](https://timdaub.github.io/2021/04/22/nft-sleepminting-beeple-provenance/), which really undermines the purported authenticity and scarcity of NFTs: > > - For example, [Christie's auctioned an NFT by the artist Beeple for $69M](https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html) (nice). > > * [Monsieur Personne](https://nftheft.com/) then exploited the ERC-721 smart contract to display Beeple as the creator of a copied NFT at the protocol level. > > - [Additional exploits](https://blog.mycrypto.com/nft-smart-contract-bugs-exploits/) have included [brute force attacks to mint rare NFTs](https://iphelix.medium.com/meebit-nft-exploit-analysis-c9417b804f89) or using smart contracts to [bypass a sales cap, like with the Adidas NFT drop](https://twitter.com/Montana_Wong/status/1472023753865396227). > > - Lastly, there's a concern about the permanence and trustlessness of NFTs. An NFT typically points to a URL on the internet or an [IPFS](https://academy.binance.com/en/glossary/interplanetary-file-system-ipfs) hash. These then point not to the media itself, but to a JSON file hosted on a company's servers. > > > - [To take Beeple's $69M NFT as an example](https://twitter.com/jonty/status/1372163423446917122?lang=en), its [JSON metadata] (https://ipfs.io/ipfs/QmPAg1mjxcEQPPtqsLoEcauVedaeMH81WXDPvPx3VC5zUz) points us to an IPFS gateway run by http://makersplace.com. > > - So retaining access to this $69M investment depends on a company staying solvent and [keeping their IPFS gateway or centralized server running](https://www.theverge.com/2021/3/25/22349242/nft-metadata-explained-art-crypto-urls-links-ipfs). > > - Here's a [recent example of OpenSea serves going down](https://np.reddit.com/r/CryptoCurrency/comments/r5wavu\/opensea_was_down_and_users_have_been_freaking_out/). > > - There is also a risk of ['link rot'](https://en.wikipedia.org/wiki/Link_rot) > > - Or, imagine a scenario in which the gateway operator runs out of capital or even goes bust. Could there be a blackmail situation where a third party scoops up the domain and ransoms access to your NFT assets? > > - Worth mentioning that this doesn't apply to all NFTs and some groups are trying to advocate a more permanent storage solution, like [Arweave](https://www.arweave.org/). ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6sviv/general_concepts_round_nft_conarguments_december/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_NFT) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/vpazdp/monthly_optimists_discussion_july_2022/).

CaptainLibertarian

Just keep watching Cardano, it's been moving at a tortoise pace over the years, but it's constantly making solid progress without many of the drawbacks of current VC-backed L1's, and actually has potential for real use cases, plus a particularly passionate community. To compare the burgeoning cryptospace to the early days of OS development: If Bitcoin is to Ethereum as Microsoft is/was to Apple ... Then Cardano has a real likelihood of becoming the Linux equivalent of the space. I find it likely that within the next few years CBDC's, and internal proprietary blockchains built by large corporations for their own business purposes (instead of using networks built elsewhere in the private sector), will both undercut the broader market of decentralized networks, leaving 1-2 clear winners in what is left of the open-source decentralized blockchain market. Cardano looks positioned to sit well as the leader of truly decentralized blockchains when it's finally at that point, and we're finally starting to get pretty close.

CointestAdmin

#NFT Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the NFT Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Updated from [my previous entry here](https://np.reddit.com/r/CryptoCurrency/comments/pfoo0a/rcc_cointest_general_concepts_nft_conarguments/hd7ew7q/): > > *Disclaimer: I don't currently hold any NFTs nor have I ever minted or speculated on them* > > #NFTs explained > > - One of BTC's original innovations was [digital scarcity](https://policyreview.info/glossary/digital-scarcity). > > - NFTs inherit this innovation - however, unlike BTC or other cryptocurrencies, NFTs are 'non fungible'. 1 BTC is ([ideally](https://sethsimmons.me/posts/fungibility-graveyard/)) interchangeable for another BTC, but 1 NFT =/= another NFT. > > - As NFTs aren’t interchangeable with each other, we've seen interest explode over the past year with usecases related to proof of authenticity and ownership. > > - For more reading, I'd highly suggest [the NFT report from Kraken](https://kraken.docsend.com/view/964aiz4n3y5dti3s). > > #Concerns > - The first negative that often comes to mind is probably the cost of minting and transferring NFTs. Small purchases, sales, and transactions can be costly for users. > > - However, this argument is usually specific to scalability issues of the Ethereum network, rather than NFTs broadly (which exist on or are planned for other chains, including BSC, Tezos, Solana, Cosmos, Cardano, Algorand etc.). > > - For the same reason, I would discount the other big negative that often gets mentioned - [environmental sustainability](https://www.theverge.com/2021/3/15/22328203/nft-cryptoart-ethereum-blockchain-climate-change) - which similarly conflates the environmental impact of NFTs with PoW chains. > > - I think more fundamental concerns around NFTs are that - in some cases - they are *not actually so trustless, permanent or scarce*, which undermines their premise and value proposition. > > - Issues like [spoofing, deceitful bidding](https://blog.mycrypto.com/common-nft-scams-to-avoid/) and [phishing](https://www.theverge.com/2022/2/20/22943228/opensea-phishing-hack-smart-contract-bug-stolen-nft) are certainly present with NFTs. Chainalysis recently posted an interesting report about the prevalence of [wash trading and money laundering in NFT markets](https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/). > > > - On the one hand, it's cool that the transparency of the blockchain allows anyone to trace this activity (more so than in traditional art markets). Like the case of[ Melania Trump's NFT sale](https://www.vice.com/en/article/m7vpx8/analyzing-the-very-bizarre-sale-of-melania-trumps-dollar170000-nft). Or trying to disentangle the [web of influence around celebrities buying NFTs](https://maxread.substack.com/p/mapping-the-celebrity-nft-complex). > > - But it also indicates that maybe the value of NFTs is less about digital scarcity/trustlessness and more about social engineering/manufactured hype. > > > - Other murky practices would be stuff like [sleepminting on Ethereum](https://timdaub.github.io/2021/04/22/nft-sleepminting-beeple-provenance/), which really undermines the purported authenticity and scarcity of NFTs: > > - For example, [Christie's auctioned an NFT by the artist Beeple for $69M](https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html) (nice). > > * [Monsieur Personne](https://nftheft.com/) then exploited the ERC-721 smart contract to display Beeple as the creator of a copied NFT at the protocol level. > > - [Additional exploits](https://blog.mycrypto.com/nft-smart-contract-bugs-exploits/) have included [brute force attacks to mint rare NFTs](https://iphelix.medium.com/meebit-nft-exploit-analysis-c9417b804f89) or using smart contracts to [bypass a sales cap, like with the Adidas NFT drop](https://twitter.com/Montana_Wong/status/1472023753865396227). > > - Lastly, there's a concern about the permanence and trustlessness of NFTs. An NFT typically points to a URL on the internet or an [IPFS](https://academy.binance.com/en/glossary/interplanetary-file-system-ipfs) hash. These then point not to the media itself, but to a JSON file hosted on a company's servers. > > > - [To take Beeple's $69M NFT as an example](https://twitter.com/jonty/status/1372163423446917122?lang=en), its [JSON metadata] (https://ipfs.io/ipfs/QmPAg1mjxcEQPPtqsLoEcauVedaeMH81WXDPvPx3VC5zUz) points us to an IPFS gateway run by http://makersplace.com. > > - So retaining access to this $69M investment depends on a company staying solvent and [keeping their IPFS gateway or centralized server running](https://www.theverge.com/2021/3/25/22349242/nft-metadata-explained-art-crypto-urls-links-ipfs). > > - Here's a [recent example of OpenSea serves going down](https://np.reddit.com/r/CryptoCurrency/comments/r5wavu\/opensea_was_down_and_users_have_been_freaking_out/). > > - There is also a risk of ['link rot'](https://en.wikipedia.org/wiki/Link_rot) > > - Or, imagine a scenario in which the gateway operator runs out of capital or even goes bust. Could there be a blackmail situation where a third party scoops up the domain and ransoms access to your NFT assets? > > - Worth mentioning that this doesn't apply to all NFTs and some groups are trying to advocate a more permanent storage solution, like [Arweave](https://www.arweave.org/). ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6sviv/general_concepts_round_nft_conarguments_december/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_NFT) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/vpazdp/monthly_optimists_discussion_july_2022/).

MilesPower

Imo it's inevitable that we will get a digital dollar. For your coin/platform to survive you will need to deal with the digital dollar for user convenience. The second your "platform" touches the digital dollar you are going to come under the US regulatory framework. Most chains will interoperate with the digital dollar for convenience (just like exchanges relying on stablecoins) and be regulated just like exchanges are in the US. You want to serve US based customers? Regulation. You want to handle the Digidollar? Regulation. There's a good reason most exchanges don't handle USD directly, it brings a hell of a lot more scrutiny to your business than USDT. The next "boom" isn't going to be from L1s that currently exist, it will be around platforms that are built from the ground up with the digital dollar in mind and get funded by VCs and investment groups that are secure in their knowing that they aren't going to get slapped by the SEC as they will be fully compliant from day 0 and have a massive advantage in this regard. They won't need to work out how to become compliant and how to fit into the new (it doesn't exist yet) regulatory framework regarding self-custody or interoperability with the digital dollar. Most chains aren't bitcoin, they are run by leaders and VC backed companies that exist physically and can be penalised heavily by the government/SEC/whoever for non-compliance. The government knows this and, rather than try and regulate bitcoin into non-existence will probably let it run it's course as a new form of investment but regulate it's use as a payment mechanism. BTC will likely exist in a neutered form alongside a government backed CBDC that will do all the insidious things we fear. Regulatory action is coming and it'll clear the path for new, compliant platforms to take the place of most of the shit we currently have.

xiwefe2

Thats why i would love to see all startup projects go thru a fundraising platform like AngelBlock, democratizing fundraising so no greddy VC can do such a stunt like ONE and LUNA VC's. Whitepaper looks sick..Gotta be careful what u hodl.

tromix1

Inb4; he leverages massive short positions against competing chains, in order to prop-up his dogshit Solana VC investment. Sam is a fucking cancer to Crypto.

LightninHooker

I wouldn't touch a dex token in DOT under any circumstance really. "Community driven" ... I'd love to see that DOT is all about VC and so far they have been dumping non-stop

LightninHooker

Well it's clear you have never used Cosmos. Cos there's nothing easier to use. Compare it to DOT for instance and they are two different animals I don't know about the others but **Cosmos** is def **very user friendly** . You can move your coins with a click, no need to write or copy paste address (so no hack or human error). Plenty, plenty of projects coming to it. Bridges are always gonna be hack and that's why you need L0 in that regards. Hopefully DOT and their VC's start to build and stop dumping everything like there's no tomorrow for once

xiwefe2

If they have set up the company from the start to be usefull and great for DeFi like some other protocols, it could do normal business in the bear market as well..But fishy VC's are kicking DeFi and Crypto in the head..b4astards..In the future all crypto projects should go thru a launchpad like AngelBlock is prepping..Read their whitepaper, mad i tell u...Democratizing fundraising so no greddy VC can steal ur money..Better be safu than lunaked

yeetsfeetsdeletes

Typical VC move. Launch, grow community then announce move away and create independent blockchain to no one's benefit but insiders.

Nrgte

I see it similiarly. Solana is a relatively young chain with rapid development. It's better to flush out the bugs and issues early on. I also see VC as a positive especially during a bear market. They want to make profit and if they dump, they'll more likely dumb during a bull market. The validator specss aren't outragous. A $5000 PC can stem that. Shouldn't be a big deal for even small companies.

AlligatorDerby

Corporate Shills,.VC money, Big banks, And the like Brainwashed the 2020 investment wave... Adoption>security Safety> custody Regulations> freedom Those shit articles that Real Coiners went "WTF mate?!" Managed to drop a few lingering brainworms for the recent Class of Greenhorns and Freshman.~ manufacturing consent. Just my Tinhat Opinion...

psipher

in this US i think it's the CFTC who is supposed to manage crypto. better thing is to call it out publically- everyone will pull out. VC will probably freeze everything as soon as they can. gonna be messy. those people deserve to goto jail. pull as much pirvate documentation as you can. Could be used in a lawsuit.

Melting_Harps

>Look at that! Now there's nobody to hero-worship Hero worship? I saw Balaji at the Bitcoin Job Fair in Sunnyvale in 2013 and he was just a nerd like the rest of us telling the crowd to 'budl instead of just hodl,' he was on right before Andreas. We discourage hero worship in Bitcoin, people are people... these are just community members to me who I have met in person the past. CONbase isn't in any position to to determine who is incompetent, but as I said, it was a clear Silicon Valley VC style exit as they took ownership of the coins in thier acquistion, he was already wealthy before he came into BTC from his time as founder and Stanford lifer: is it any surprise that their IPO was orders of magnitude more inflated than what it was worth, who was behind that? The Silicon Valley heavy hitters with VC driving the demand to it's peak. >**More importantly for Andreessen Horowitz, Qualcomm Ventures, Khosla Ventures and other backers of Earn.com**, this deal with Coinbase — **which includes cash, stock and crypto** — represents a turnaround in fortunes for the startup. (Andreessen Horowitz is also an investor in Coinbase, it should be noted.) [https://techcrunch.com/2018/04/16/coinbase-buys-earn-com-and-makes-ceo-balaji-srinivasan-its-first-cto/?guccounter=1&guce\_referrer=aHR0cHM6Ly9kdWNrZHVja2dvLmNvbS8&guce\_referrer\_sig=AQAAAHjVF7rhELUb3Z8vdjRe79azlehHyr07m0oYe0TR9cqPDOtvf3WHVmq3QXKgOpc2PCqoOZrQ4wL9OoXHC0U6IF7zCN2Bi0HHfpIQ0e4K3mrCXmeQi4lYs\_MD9siTQVeHWu5cVmmbV34hNiBM-lz2cxNo3C1LatYSGdvgO4lfiWmZ](https://techcrunch.com/2018/04/16/coinbase-buys-earn-com-and-makes-ceo-balaji-srinivasan-its-first-cto/?guccounter=1&guce_referrer=aHR0cHM6Ly9kdWNrZHVja2dvLmNvbS8&guce_referrer_sig=AQAAAHjVF7rhELUb3Z8vdjRe79azlehHyr07m0oYe0TR9cqPDOtvf3WHVmq3QXKgOpc2PCqoOZrQ4wL9OoXHC0U6IF7zCN2Bi0HHfpIQ0e4K3mrCXmeQi4lYs_MD9siTQVeHWu5cVmmbV34hNiBM-lz2cxNo3C1LatYSGdvgO4lfiWmZ)

MilesPower

Imo it's inevitable that we will get a digital dollar. For your coin/platform to survive you will need to deal with the digital dollar for user convenience. The second your "platform" touches the digital dollar you are going to come under the US regulatory framework. Most chains will interoperate with the digital dollar for convenience (just like exchanges relying on stablecoins) and be regulated just like exchanges are in the US. You want to serve US based customers? Regulation. You want to handle the Digidollar? Regulation. There's a good reason most exchanges don't handle USD directly, it brings a hell of a lot more scrutiny to your business than USDT. The next "boom" isn't going to be from L1s that currently exist, it will be around platforms that are built from the ground up with the digital dollar in mind and get funded by VCs and investment groups that are secure in their knowing that they aren't going to get slapped by the SEC as they will be fully compliant from day 0 and have a massive advantage in this regard. They won't need to work out how to become compliant and how to fit into the new (it doesn't exist yet) regulatory framework regarding self-custody or interoperability with the digital dollar. Most chains aren't bitcoin, they are run by leaders and VC backed companies that exist physically and can be penalised heavily by the government/SEC/whoever for non-compliance. Regulatory action is coming and it'll clear the path for new, compliant platforms to take the place of most of the shit we currently have.