Cointelegraph’s Nifty Newsletter provides updates on the latest news and trends in the world of nonfungible tokens (NFTs). This week, we cover several interesting stories, including the launch of a decentralized social media platform called Frend.tech, the decision by Yuga Labs to wind down its support for OpenSea, the decline in Bitcoin Ordinals NFT trading volume, and the lawsuit faced by Sotheby’s and Yuga Labs from Bored Ape Yacht Club investors.
Frend.tech, a decentralized social media application, has quickly gained popularity in the crypto community. Since its beta version launch on August 11, the platform has attracted over 100,000 new users and facilitated more than 24,000 Ether (ETH) in trading volume. Notable figures outside the crypto space, such as gaming YouTuber Faze Banks and Russian protest group Pussy Riot, have also joined the platform. However, despite its initial success, some industry experts express concerns that the hype around Frend.tech may not be sustainable in the long run.
OpenSea, one of the leading NFT marketplaces, recently announced its decision to disable its on-chain royalty enforcement tool, Operator Filter. This tool allowed creators to blacklist NFT marketplaces that did not enforce royalty payments. The change is scheduled to take effect on August 31. Yuga Labs, the creator of the popular Bored Ape Yacht Club NFT collection, responded to this announcement by stating that it would gradually reduce its support for OpenSea.
In another development, DappRadar, a platform that tracks decentralized applications (DApps), reported a significant decline in Bitcoin Ordinals NFT trading volume. According to their data, trading volumes for Bitcoin Ordinals NFTs have plummeted by 98% since May. The number of transactions also dropped by around 97% during the same period. This decline raises questions about the sustainability of the NFT market and its ongoing appeal to investors.
Sotheby’s, a renowned fine arts auction house, has been named in a class-action lawsuit filed by Bored Ape Yacht Club investors against Yuga Labs. The lawsuit alleges that Sotheby’s assisted Yuga Labs in deceptively promoting the NFT collection. The investors claim that Yuga Labs and celebrities, including Post Malone, Justin Beiber, and Paris Hilton, artificially inflated the prices of the NFTs through celebrity endorsements. Sotheby’s and Yuga Labs are now required to respond to the allegations made by the investors.
Lastly, we explore the collapse of Orica, a “charitable” NFT project that was launched in November 2021. Orica positioned itself as an ethical platform that aimed to support artists, collectors, and charities. However, in a shocking turn of events, the founders of Orica have disappeared, and the marketplace’s user interface has gone offline. While the project’s charitable efforts were genuine, disgruntled users have accused the developers of orchestrating a rug pull, a scam where developers abandon a project after raising funds. Co-founder Danial Zey, breaking his year-long silence, denies all allegations and claims that the project was hacked. Cointelegraph investigates the truth behind the collapse of Orica.
These are just a few of the top stories in the NFT space this week. As the NFT market continues to evolve, it is important to stay informed about the latest developments and trends. Join us again next Wednesday for more updates and insights into the world of NFTs.