FTX NFTs 'Break' As Bankruptcy Proceeds
NFTs minted on FTX are showing blank images instead of the appropriate artwork when viewed on marketplaces such as Magic Eden, as reported by Coin Telegraph.
The tokens themselves are still fine and reside on their respective blockchains (i.e. Solana), but the API call to the hosted metadata and images is broken.
When viewing their NFTs, owners are seeing blank images instead. The metadata is apparently now pointing to an FTX website providing information about bankruptcy proceedings, as pointed out by Solana engineer jac0xb.sol.
This brings up a larger discussion on the optimal methods of storing art and metadata tied to NFTs. Some artists and project founders are opting to put all of the data on the blockchain itself, removing any need for hosting on a Web2 site (the more popular method).
Most NFT project founders have traditionally hosted their metadata on services like AWS or the Google Cloud, which does create the risk of those services going down (and thus losing access to the metadata and images) along with a greater centralization debate (are NFTs decentralized if they are 90%+ reliant on AWS). But that is a question for another day.