Jimmy McNelis, the founder of Web 3.0 tech firm nameless, reveal there are as well several non-fungible token(NFT) projects rushing to market without proper smart contract testing — potentially leading to millions lost.
Speaking with Cointelegraph, McNelis suggested that several non-fungible token(NFT) projects often rush to market without fully simulating how its smart contracts will work, even skipping extensive audits in some cases.
McNelis stated an example of this was observed during the sale of the Akutars non-fungible token(NFT) collection in February 2021 — featuring 15,000 crypto tokens that went up for sale on Winklevoss-owned non-fungible token(NFT) marketplace Nifty gateway.
McNelis stated while the non-fungible token(NFT) fall sold out, a major bug saw $33 Million worth of Ether (ETH) generated from the sale locked up in a smart contract that the devs have no access to, explaining:
“That was the sort of thing that they could have tested more completely in a private test environment and run the tests against those sales and edge cases, that they may or may not have taken the time to do or thought to do on a public testnet.”
McNelis emphasized the importance of getting the test phase right, given that smart contract bugs can’t be patched post-launch:
McNelis stated that while projects can use public test nets to conduct trials for networks like ethereum (ETH), several don’t as it could open the door for copycat scam projects. He likewise reveal that some don’t want to test in public environments of the lack of confidentiality.
“The other thing is there’s several brands that may be wanting to explore the Web 3.0 space but aren’t ready to reveal publicly that they’re doing so.”
Nameless was established by McNelis in mid-2021, and the project has so far received backing from well known entrepreneur and non-fungible token(NFT) proponent Gary Vaynerchuck between others.
It is gearing up for a new product launch later this month with an non-fungible token(NFT) software called StealthTest, which provides private testnets for devs to trial smart contracts for Ethereum (ETH), IPFS, and Arweave.
Commenting on the non-fungible token(NFT) market, McNelis expects big-name corporations continuation to pile into the space with their own tokenized products, and for organic retail interest continuation to increase.
He did note that in terms of investments, it’s still as well early for the big financial corporations to want to speculate on non-fungible token(NFT) themselves.
“I think institutions are still going to be primarily focused on producing things like that. On the other hand, some of the braver ones may speculate into some NFTs, but I don’t think that non-fungible token’s (NFT) are mature enough yet and the markets are mature enough yet to make safe longstanding investments,” he stated.
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