Jimmy McNelis, founder, Nameless, a Web3.0 technology firm, stated that non-fungible token (NFT) projects are being rushed into the market without the proof of them being properly smart contract tested, which could potentially results in a loss of millions, as reported by Cointelegraph.
According to Cointelegraph, McNelis said that lot of NFT projects are brought into the market without being fully simulated of how smart contracts will work, while auditing is also left out in certain cases. Through an example, McNelis made his point that he observed during the sale of the Akutars NFT collection in February, 2021, which consisted of 15,000 tokens that went up for sale on Winklevoss-owned NFT marketplace Nifty Gateway. Reportedly, due a bug, $33 million worth of Ether generated from the sale locked up in a smart contract. McNelis highlighted the need for test phase implications, as smart contract bugs can’t be solved after launch.
On the basis of information by Cointelegraph, McNelis explained that while projects can utilise public test nets to conduct trials for networks such as Ethereum, it could potentially result into copycat scam projects. McNelis made the point about people not willing to test in public environments due to the lack of confidentiality.
Moreover, Cointelegraph noted that Nameless was founded by McNelis in middle of 2021, and the project has reportedly received backing from entrepreneur and NFT proponent Gary Vaynerchuk, among others. It is preparing itself for the new product launch of a NFT software called StealthTest, which provides private testnets for devs to trial smart contracts for Ethereum, IPFS, and Arweave. McNelis has spoke on his expectations to have an increased number of companies with regard to business on tokenised products, and for organic retail interest to go up.
“I think institutions are still going to be primarily focused on producing things like that. But some of the ones may speculate into some NFTs, but I don’t think that NFTs are mature enough yet and the markets are mature enough yet to make safe long-term investments,” McNelis mentioned.
(With insights from Cointelegraph)