THE DEVIL IS IN THE EVER-CHANGING DETAILS

Most of this article has focused on the issues with Ethereum, NFTs based on it, and the biggest marketplaces that use them. However, it’s difficult to map the exact shape of how any specific NFT or crypto project can be misused or an outright scam, due to the highly specific details of how each project and blockchain works. As an example, when the US Postal Service issued around 25,000 NFTs of its Day of the Dead–inspired stamps, it used a more obscure mobile app platform, not based on Ethereum, but rather using the Ethereum-compatible GoChain. The app simply sells “gems” for $1 apiece (which are designed to be a user-friendly interface for underlying OMI tokens) that users can then use to buy NFTs within the app. Each of the Day of the Dead NFTs sold for 6 gems each. The catch is that cashing out gems users earn from selling NFTs is “currently in testing,” after over a year of being unavailable entirely. Users can buy the app’s special currency to purchase NFTs, but after that they can be traded only with other users of the app for more gems. Despite users looking for ways to cash out their gems for at least a year, the feature hasn’t been added, though the platform has attracted brand deals including Marvel, DC, and Star Trek in that time.