The crypto world was rocked last week by the stunning implosion of the second largest cryptocurrency exchange, FTX. The industry-wide ripple effects are still going on, but Coachella appears to be caught in collateral damage.
Festivals partnered with FTX.US $1.5 million worth of NFTs sold It dates back to February, months before the Southern California event was first staged since the pandemic. The collection included 10 of his NFTs, “Coachella Keys,” which grant lifetime access to the festival and VIP perks such as luxury experiences and exclusive merchandise. Many of these NFTs are stuck on non-functioning exchanges and can’t seem to be accessed.
Speaking on the festival’s Discord server, a Coachella staff member said, “Like many of you, we’ve been watching this news play out online over the last few days and have been shocked by the results.” We have assembled an internal team to come up with a solution based on the tools we have access to.Our priority is to get the Coachella NFTs from FTX, which now appears to be disabled. That’s it.”
“We are actively working on a solution and are confident that it will protect the interests of Coachella’s NFT owners,” said Coachella’s innovation leader. Sam Schoonover in a statement sent to billboard.
FTX filed for Chapter 11 bankruptcy on Friday, citing a “severe liquidity crisis” after depositors rushed to withdraw more than $6 billion in 72 hours.FTX and its founders Sam Bankman-Fried Mixing customer deposits with sister trading company Alameda Research has left a billion-dollar hole in the exchange’s balance sheet. It became clear.
The ripple effect is devastating, with billions of dollars locked up with little hope of recovery. Among these assets are several NFTs released through the FTX platform, including his NFTs for Coachella and Tomorrowland.
one collector said billboard He was able to withdraw the Coachella key into his wallet days before FTX went bankrupt, but many others weren’t so lucky. A user who currently keeps NFTs on his FTX platform will not be able to access them.
Few in the Web3 industry predicted a crisis of this magnitude, but many crypto advocates have long argued that NFTs and cryptocurrencies should not be stored or held on centralized platforms such as FTX. have argued. The latest update from the Coachella team, published on Saturday (November 12th), advised the user not to interact with any FTX products and recommended signing out of all his FTX accounts.