Bitcoin NFTs Ordinal Punks Called Out as ‚Sketchy‘

• Ordinal Punks, a Bitcoin NFT collection, have been called out as potentially “the biggest NFT scam of all time” due to an inadequate infrastructure and strong FOMO.
• The novelty of the Bitcoin chain and its provenance seem to drive demand, but there are questions about legitimacy.
• Bitcoin Punks, a clone of Ethereum’s CryptoPunks, is also suffering from lack of smart contracts and the same „square peg, round hole“ approach.

Ordinal Punks Called Out

An anonymous Twitter account has expressed concerns about Ordinal Punk’s NFTs being „the biggest NFT scam of all time.“ This is particularly due to a lack of on-chain infrastructure that could verify information such as sales or even facilitate click-and-buy processes. Additionally, details about Ordinal Punks are restricted to people’s accounts rather than open data derived from on-chain information.

FOMO Rising

The rising popularity of Ordinal Punks is evident with the sale of three NFTs including #94 which reportedly sold for 9.5 Bitcoins ($215,800). Despite the lack of necessary infrastructure for such activities on the Bitcoin chain, people are going crazy in Discord trying to snap up one these Bitcoin Punk clones.

Price Floor for Blue Chip NFTs?

According to the Director of Research at PROOF Collective who got his information from a „Google doc,“ it appears that Ordinal Punks have set a price floor at 55.4 ETH ($85,500). Although this may be considered ball park figures for blue chip collections, TheNorweigan questioned whether these belong in this group due to low transparency and extreme asymmetry when it comes to information available about these collections.

Inadequate Infrastructure

Given that Bitcoin was not originally designed with NFT functionality in mind, there is no appropriate infrastructure present yet which can accommodate sales in an easy click-and-buy process or even verify sales or other related information accurately. Consequently it makes it difficult for buyers to make informed decisions regarding their purchase without having access to full information on what they’re buying into first.

Advice Against FOMO

Despite the current wave of enthusiasm surrounding these collections due to their novelty value on the Bitcoin chain and provenance effect, @seanbonner has advised against falling prey to FOMO because: A) There’s no market so you have rely OTC; B) There are a lot scams; C) Low/none transparency; D) Need to run node; E) Extreme info asymmetry .

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