• Ordinal Punks NFTs are being called out as ’sketchy‘ due to inadequate infrastructure and a lack of transparency.
• Despite this, demand for Bitcoin NFTs is still on the rise, with clone collections such as ‘Bitcoin Punks’ becoming increasingly popular.
• However, it is advised to stay away from FOMO due to the lack of smart contracts and the ‘square peg, round hole’ approach used by these collections.
Ordinal Punks NFTs Called Out As ‚Sketchy‘
An anonymous Twitter account expressed its concerns about Ordinal Punks NFTs questioning whether it was „the biggest NFT scam of all time?“ On Feb 9th, CryptoSlate reported on the rising popularity of Ordinal Punks and the sale of three NFTs including #94 which reportedly sold for 9.5 Bitcoins ($215,800).
What Are The Concerns With Ordinal Punks?
Given that the Bitcoin chain was not originally designed to accommodate NFT functionality there is no infrastructure to verify information or even facilitate sales in a click-and-buy process. Furthermore details about Ordinal Punks are restricted to people’s accounts rather than openly accessible data derived from on-chain information. Citing the Director of Research at PROOF Collective who got this information from a „Google doc,“ TheNorweigan said Ordinal Punks have a current price floor of 55.4 ETH ($85,500) but questioned whether they were worthy of being classed as blue chip given everything was happening OTC, scams were prevalent and there was extreme information asymmetry.
Demand For Bitcoin NFTs On The Rise
Despite this @seanbonner tweeted that Bitcoin Punks (a clone of Ethereum’s CryptoPunks) is taking off right now and suffering from similar drawbacks due to using an inappropriate undeveloped NFT infrastructure on Bitcoin however people are still trying to snap one up in Discord due to FOMO (Fear Of Missing Out).
Advice To Steer Clear Of FOMO
@seanbonner advise against falling for FOMO due to there being no market so you have to rely on OTC sales or wait until someone wants to sell which could take months and ultimately leave you without any profit. He also warned that there is no liquidity meaning if you buy one it can be hard to find someone else willing or able to buy it off you at anywhere near the same price leaving you locked into your investment with no way out other than waiting for someone else crazy enought o pay what you paid for it – or more – if you’re lucky!
In conclusion whilst demand for Bitcoin NFTS remains high caution should be exercised when considering buying into collections such as Ordinal Punk & Bitcoin Punk given their questionable legitimacy and lack of infrastructure/transparency making them vulnerable targets for scams & manipulation leaving investors exposed & unable to easily exit their positions without losses if they need/want too.