Last year, Akutars NFT collection sold 15,000 tokens, but a big big one saw $33 million worth of Ether (ETH) generated from sales locked in an unreachable smart contract.
Jimmy McNelis, the founder of unnamed tech company Web3, says there are too many NFT projects rushing to market without proper smart contract testing, which could lead to millions in losses.
Speaking to Cointelegraph, McNelis suggested that many NFT projects often rush to market without fully simulating how their smart contracts work, even skipping thorough audits in some cases.
McNelis said an example of this was seen during the sale of the Akutars NFT collection in February 2021 – with 15,000 tokens that went on sale on the Winklevoss-owned NFT marketplace, Nifty Gateway.
McNelis said that while the NFT drop was sold out, a major bug saw $33 million worth of Ether (ETH) generated from the sale locked in a smart contract that developers don’t have access to, explaining:
That’s the kind of thing that they could have tested more thoroughly in a private test environment and run the tests on these sell and edge cases, which they might have taken the time to do or thought of doing on a public testnet.
McNelis stressed the importance of passing the testing phase, given that bugs in smart contracts cannot be fixed after launch:
The testing phase of a project is extremely critical as it will really determine the success of your launch or launch as far as technical and market solutions are concerned.
McNelis explained that while projects can use public testnets to conduct trials for networks like Ethereum, many do not because it could open the door to copy scam projects. He also says that some don’t want to test in public settings the lack of privacy.
“The other thing is there are a lot of brands that might want to explore the Web3 space but aren’t ready to publicly announce that they are. »
Nameless was founded by McNelis in mid-2021, and the project has so far received support from popular entrepreneur and NFT promoter Gary Vaynerchuck, among others.
It is gearing up for a new product launch later this month with NFT software called StealthTest, which provides private testnets for developers to test smart contracts for Ethereum, IPFS, and Arweave.
Commenting on the NFT market, McNelis expects big companies to continue to crowd the space with their own token products, and interest in organic retail to continue to grow.
He noted that in terms of investments, it is still too early for major financial companies to want to speculate on NFT themselves.
“I think institutions are always going to focus primarily on producing things like that. But some of the bravest may speculate on some NFTs, but I don’t think NFTs are mature enough yet and markets are mature enough yet to make safe long-term investments,” he said.
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Many NFT Projects Lack Adequate Smart Contract Testing, Says Anonymous Founder | Cryptocurrency
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