• Concerns are being raised about the legitimacy of Ordinal Punks NFTs on Bitcoin.
• There is a lack of infrastructure to verify information or facilitate sales process.
• Despite the drawbacks, there is strong FOMO for Bitcoin NFTs like Ordinal and Bitcoin Punks.
Ordinal Punk NFTs Called Out as ‚Sketchy‘
Rising Popularity of Bitcoin NFTs
CryptoSlate reported on the rising popularity of Ordinal Punks, covering the sale of three NFTs according to social media posts, including #94, which reportedly sold for 9.5 Bitcoins ($215,800). The novelty of NFTs on the Bitcoin chain and the chain’s provenance seems to be driving demand for these NFTs.
Concerns with Legitimacy
Anonymous Twitter account TheNorwegian expressed concerns about Ordinal Punks NFTs, questioning whether this is „the biggest NFT scam of all time?“ Given that the Bitcoin chain was not originally designed to accommodate NFT functionality, there is no infrastructure to verify information such as sales or even to accommodate sales in a click-and-buy process. Details about Ordinal Punks are restricted to people’s accounts rather than openly accessible data derived from on-chain information.
FOMO for Clone Collections
@SeanBonner tweeted that Bitcoin Punks, a clone of Ethereum’s CryptoPunks is taking off right now. However, due to using an inappropriate undeveloped infrastructure on Bitcoin they suffer from similar drawbacks as Ordinal Punks. Nonetheless, people are trying hard to snap one up in Discord due to strong FOMO despite lack of smart contracts and “square peg round hole” approach.
Price Floor Established
The Director of Research at PROOF Collective shared that based on a Google doc there is currently a price floor for Ordinals Punk collection at 55 ETH ($85,500). This could indicate that it has been classified as blue chip but considering all other factors some are questioning its validity.
Given the inadequate infrastructure and strong FOMO surrounding ordinal punk and other bitcoin punk collections it is important not be taken in by hype without considering all factors firstly before investing in any collection like this one.