NFT Thefts Hit $100 Million in 22 days; Facebook Adds Tokens

NFT Thefts Hit $100 Million in 22 days; Facebook Adds Tokens ...

Elliptic, a blockchain research company, reported that more than $100 million worth of non-fungible tokens (NFTs) had been stolen in the 12 months ended in July. That equated to an average of $300,000 per theft.

The firm's analysis, "NFTs and Financial Crime: Money Laundering, Market Manipulation, Scams, and Sanctions Evasion Through Non-Fungible Tokens," concluded that "the actual numbers are likely to be higher, as thefts are not always publicly reported."

The worst month for the group was this July, when 4,600 items were discovered, according to the report.

NFTs have been hacked by $8 million since 2017, according to the blockchain data company. "There is a growing threat to NFT-based services from sanctioned entities and state-sponsored exploits," according to the report.

The highest profile of these thefts came from actor Seth Green, who is staring at an otherwise-live action TV show he is producing. He claimed to have purchased the item back for more money than he paid the first time.

Seth Green's Kidnapped Bored Ape Demonstrates NFTs' Growing Commercialization

Meta has added facebook NFTs.

Meta, a social media conglomerate, has added the ability to display NFTs on Facebook, furthering the capabilities of its Instagram platform on August 29. Users will be able to cross-post their NFTs, connecting them to both sites at once via connecting a digital wallet containing the token.

In May, Instagram expanded its capabilities to 100 countries across the globe, with the fourth day of August.

While Instagram and Facebook paved the way for users to link NFTs to their profiles, Twitter remained primarily focused on profile photos, which had a special border denoting a linked NFT rather than a cut-and-pasted image.

The increase on Facebook and Instagram might help the NFT business tremendously grow, as it provides a compelling reason to own them for a much larger population — 2.3 billion Facebook users is a substantial increase, even if you do require a separate digital wallet at this stage.

In a press release in May, Meta said creators are using new technologies like NFTs to take more control of their work, their interactions with fans, and how they can monetize. “We’re looking at what creators are already doing across our technologies in order to enhance the experience, help them create more monetization opportunities, and bring NFTs to a wider audience.”

Royalties in the NFT are easily dethroned.

The ability to add royalty payments to any NFT resale might be a boon for musicians, musicians, and others. However, the idea has the potential to shake up the creator economy — and has been quickly adopted by musicians, who have lost their income due to the advent of streaming music services — and it still has a hole.

The NFT's smart contract cannot tell who it's been sold to — or for how much. Instead, NFT marketplaces monitor, collect, and enforce royalty requests. While most of the big sites do, several decentralized finance (DeFi) have emerged that specifically cater to owners who want to avoid royalties.

Mike "Beeple" Winkelmann, well-known for the $69 million NFT sales that attracted interest from the general public last year, wrote on Twitter, saying, "We can't'smart contract' our way around this. If I 'gift' a NFT to someone, and they 'gift' me 10ETH afterwards, we have gotten around royalties."

According to him, "creators will need to build a collector base that WANT to honor these royalties."

And it's also quite complicated, as musicians learned a few decades ago when Napster transformed mass pirating into a private hobby.

Going, Going...

According to The Block, Sotheby's has hired an NFT expert for its digital art division. Brian Beccafico, who goes by @Arthemort, is joining the well-known company as it expands its NFT market presence that began with the $17 million sale of an NFT titled "The Fungible" by digital artist Pak.

Sotheby's Metaverse is a new type of NFT sales platform that is not, in fact, in a metaverse in October 2021.

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