• Ordinal Punks NFTs have been called out as sketchy due to a lack of infrastructure and strong FOMO.
• There is no way to verify information, and details are restricted to social media accounts.
• Bitcoin Punks, a clone of Ethereum’s CryptoPunks, is gaining in popularity but suffers from the same drawbacks.
Ordinal Punks NFTs Called Out As ‚Sketchy‘
A Twitter user recently questioned the legitimacy of Ordinal Punks NFTs as potentially being „the biggest NFT scam of all time.“ The appeal of novelty on the Bitcoin chain has caused demand for these NFTs, though there is an inadequate infrastructure to verify information or facilitate transactions in a streamlined way. It has also been suggested that the collection may not be worthy of being categorized as blue chip given its OTC nature and lack of transparency.
Bitcoin Infrastructure Not Suited For NFTs
The Bitcoin chain was not designed with accommodating NFT functionality in mind, meaning that there is currently no infrastructure available which could verify data such as sales or enable click-and-buy purchases. This means that details about Ordinal Punk sales need to be accessed through social media accounts rather than on-chain data sources. In addition, it has been speculated that the floor price for these collections may be around 55 ETH ($85,500).
FOMO Driving Demand For Bitcoin Punks
Despite lacking smart contracts and having an overall inappropriate approach for what it’s attempting to accomplish, Bitcoin Punks have become extremely popular due to FOMO amongst Discord users trying to snap up one before someone else does. However, this clone collection suffers from similar issues as Ordinal Punks due to its use of the same rudimentary NFT infrastructure on Bitcoin.
Risks Of Investing In These Collections
Given their small size and lack of transparency surrounding them, both Ordinal Punk and Bitcoin Punk collections come with significant risk for anyone wishing to invest in them. Without verification processes or even marketplaces where potential buyers can browse collections easily, there remains a strong possibility that these collections could turn out to be scams or at least highly overvalued assets without any real value attached them beyond their novelty status on the blockchain.
The influx of new investors into the world of crypto assets often leads people looking for profits without doing proper research first – a situation which can lead those involved into investing money into high-risk projects such as these two collections which appear overly reliant upon FOMO rather than offering any real value beyond their novelty status on the blockchain itself