NFT Ordinal Punks on Bitcoin Raise Fears of Scams

Amid the rampant development, anonymous Twitter account TheNorwegian said Fear On the NFT of Ordinal Punks, ask the question:

“Is this the biggest NFT scam ever?”.

The NFT Ordinal Punks project is growing in popularity, and according to social media posts, 3 NFTs have been sold. Of these, #94 was sold for 9.5 BTC ($215,800).

The novelty of Bitcoin NFTs and the origin of the chain appear to be driving demand for these NFTs. However, some have questioned the authenticity of the collection.

concerns about ordinal punk

Since the original Bitcoin chain was not designed to accommodate NFT functionality, there was no infrastructure to verify information such as sales, or even accommodate sales during the purchase process.

The details of Ordinal Punks are known primarily through people’s accounts of what happened rather than publicly available data pulled from the chain.

Quoted from Research Director of PROOF Collective via Google Docs, TheNorweigan explain Ordinal Punks currently has a base price of 55.4 ETH ($85,500). He added that this was an approximate figure for a blue-chip collection of NFTs, but then questioned whether Ordinal Punks deserved to be classified as blue-chip?

Supporting this view, TheNorweigan points out the following, which makes him think they are “slim”:

  • Everything happens over the counter.
  • There are many scam signs.
  • Low or no transparency.
  • You need to run a bitcoin node to do minting.
  • Information is extremely asymmetric.

Demand for Bitcoin NFTs is Growing

User Sean Bonner tweeted that Bitcoin Punks, a clone of Ethereum’s CryptoPunks, is “hot” right now.

Bitcoin Punks have the same limitations as Ordinal Punks, due to the inconsistent use of the same NFT infrastructure, which has not yet been developed on Bitcoin.

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However, according to Sean Bonner, despite the lack of smart contracts and “non-standard” methods, people went crazy on Discord trying to catch Bitcoin Punk. He advises against falling into FOMO for the following reasons:

“A- There is no market, so you have to rely on trust, scammers are everywhere. B- FOMO is crazy, people asking stupid prices. C- Receiving is hard, sending is even harder. Again, this is different from the Ethereum we are all used to.”

Bonner also pointed out that Bitcoinpunks are not “official,” adding that they are just a clone of Cryptopunks on another chain. The same goes for Ordinal Punks owned by TheNorwegian show Similar to Ethereum’s MutantPunks.

“I think NFT Bitcoin could be a great option for the space and attract new people to it. However, I think the bearish one is the staged hype and influencers selling you pebbles disguised as gold.”

What happened on the Ordinal Punks Discord?

Enter ordinal punk discordbuying and selling are not as “crazy” as Bonner described on the Bitcoin Punks Discord, perhaps because there are only 100 Ordinal Punks Discords compared to 10,000 Bitcoin Punks Discords.

However, the Total channel is very active and seems to be the place to discuss NFT Bitcoins, not just Ordinal Punks.In addition, the community also found Google Docs On NFT Bitcoin, 43 NFT items with Discord links are displayed along with supply, notes for potential buyers, and more.

According to FlowStay administrators, there were still 17 Ordinal Punks available for purchase as of the evening of Feb. 9.

non-homogeneous token

Source: Discord

Additionally, sales reviews show that early Ordinal Punks changed hands for much lower prices. The first sale took place on February 2nd when #69 was exchanged for 0.07 BTC. As of now, the price increase has been steady over time.

Sell ​​order #94 was confirmed at 9.5 BTC, the highest price recorded in this channel.

non-homogeneous token

Source: Discord

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Ming Ying

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