According to an anonymous creator, many NFT initiatives lack proper smart contract testing.

The Akutars NFT collection sold out of 15,000 tokens last year, but a significant amount of the $33 million in Ether (ETH) that was made from sales was locked behind an impenetrable smart contract.

The creator of Web3 tech company anonymous, Jimmy McNelis, claims that too many NFT initiatives are racing to market without adequate smart contract testing, potentially costing millions of dollars.

According to McNelis, many NFT initiatives frequently rush to market without adequately modeling how their smart contracts would function, sometimes even bypassing rigorous audits.

An illustration of this, according to McNelis, was shown during the February 2021 sale of the Akutars NFT collection, which included 15,000 tokens and was offered for sale on the Nifty Gateway NFT marketplace operated by the Winklevoss twins.

While the NFT drop was sold out, according to McNelis, a serious problem caused $33 million in Ether (ETH) to be produced from the sale to be locked up in a smart contract that the developers are unable to access. He explained:

“They could have tested that type of stuff more thoroughly in a private test environment and ran the tests against certain sales and edge scenarios, that they may or may not have had the time to do or thought to do on a public testnet,” said the researcher.

Given that smart contract issues cannot be fixed after launch, McNelis underlined the need of getting the test process right:

“A project’s testing phase is vitally important since it will ultimately decide the technical and commercial success of your drop or launch.”

While projects can utilize public test nets to perform testing for networks like Ethereum, McNelis said that many don’t since it could allow for copycat fraud enterprises. He also claims that some people are reluctant to test in open settings due to a lack of secrecy.

The other issue is that many firms might wish to investigate the Web3 sector but aren’t ready to make a public announcement about it.

McNelis established Nameless in the middle of 2021, and Gary Vaynerchuck, a well-known businessman and supporter of NFT, is among those who have so far given the project their support.

StealthTest, an NFT program that offers developers private testnets to evaluate smart contracts for Ethereum, IPFS, and Arweave, is about to be released as a new product.

Regarding the NFT market, McNelis predicts that well-known corporations will keep flooding the market with their own tokenized items and that organic retail demand will keep rising.

He did point out that it’s still too early for the major financial institutions to want to make their own predictions about NFT in terms of investments.

“I believe that generating such things will continue to be institutions’ main priority. However, some of the more daring individuals could speculate in some NFTs. “However, I don’t believe that NFTs and the markets are mature enough now to make safe long-term investments,” he added.

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