Many NFT projects lack adequate testing for smart contracts, the anonymous founder says

Last year, the Akutars NFT collection sold 15,000 tokens, but a big big one saw $ 33 million in Ether (ETH) generated from sales stuck in an unreachable smart contract.

Jimmy McNelis, the founder of the unnamed tech company Web3, says there are too many NFT projects rushing to market without proper smart contract testing, which could lead to millions in losses.

Speaking with Cointelegraph, McNelis suggested that many NFT projects often launch into the market without completely simulating the operation of their smart contracts, skipping even in-depth audits in some cases.

McNelis said an example of this was seen during the sale of the Akutars NFT collection in February 2021, with 15,000 tokens being offered for sale on the NFT market owned by Winklevoss, Nifty Gateway.

McNelis said that while the NFT drop was out of stock, a major bug saw $ 33 million of Ether (ETH) generated from the sale stuck in a smart contract that developers don’t have access to, explaining:

This is the kind of thing they could have tested more thoroughly in a private test environment and run the tests on these sales and edge cases, which they could have taken the time to do or think about doing on a test network. public.

McNelis stressed the importance of passing the test phase, as bugs in smart contracts cannot be fixed after launch:

The testing phase of a project is extremely critical as it will really determine the success of your launch or launch with regards to technical and market solutions.

McNelis explained that while projects can use public testnets to conduct tests for networks like Ethereum, many don’t because it could open the door to copying scam projects. He also says that some do not want to test the lack of privacy in public settings.

“The other thing is that there are many brands that may want to explore the Web3 space but are not ready to publicly announce that they are. “

Nameless was founded by McNelis in mid-2021 and so far the project has received support from famed NFT entrepreneur and promoter Gary Vaynerchuck, among others.

It is preparing for a new product launch later this month with NFT software called StealthTest, which provides private testnets for developers to test smart contracts for Ethereum, IPFS and Arweave.

Commenting on the NFT market, McNelis expects large companies to continue crowding the space with their own token products and that interest in organic retail will continue to grow.

He noted that in terms of investments, it is still too early for large financial firms to want to speculate on NFTs themselves.

“I think institutions will always focus primarily on producing things like that. But some of the bravest might speculate on some NFTs, but I don’t think NFTs are mature enough yet and markets are mature enough to make long-term safe investments, “he said.

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