FTX Collapse: Coachella NFTs lost in the Metaverse

End of the Coachella NFT party? – The Octopus FTX bankrupt rang the death knell for the number of partnerships Around the world. Companies, individuals, investment funds, everyone is affected. Up to the adventurous cultural initiatives that had dared to attempt the blockchain. This is especially the case with Coachella party held annually in April near Palm Springs. Foray into a crypto-musical drama.

Coachella NFT held hostage to FTX

It all goes back to last February when the festival partners with FTX.US to list an NFT collection with a total value of over $1.5 million. Two months before the long-awaited festival, the first since the end of the COVID-19 pandemic. Enough to excite musicians eager to party. The collection also includes 10 NFTs Coachella keys giving lifetime access to the pop and electronic festival, plus VIP benefits.

But following the FTX debacle, all these beautiful NFTs are now blocked on the platform. No way for unfortunate owners to access them. Even Coachella staff members say they are shocked by recent events. On their disagreements, they confirm the bad news.

“We currently have no contact with the FTX teams. We have created an internal team to develop a solution using the tools we have at our disposal. Our priority is to successfully remove NFTs from the FTX platform. »

Coachella staff member

Cryptos and NFTs, prisoners of the FTX platform

Some holders would still have managed to withdraw their NFTs from the platform before the crash. However, even the latter are not at the end of their sentence. Because these NFTs would now find themselves without any visuals (artwork) to show. This is due to the deactivation of the FTX servers responsible for hosting the images.

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FTX, the lack of trust

“We are actively working to find solutions and are confident that we will be able to protect the interests of Coachella NFT holders”

Sam Schoonover, Chief Innovation Officer of Coachella

Indeed, despite FTX’s radio silence, the aggrieved principals can still rely on the Coachella organization for their claims. It is therefore likely that compensation can be found. Whether it is the recovery of NFTs, the issuance of a new collection or even the provision of an equivalent physical pass, the solutions are many.

Because for the moment funds, cryptocurrencies and NFTs are blocked on FTX with no certainty about their recovery. Among these virtual works we find collections related to tomorrowlandNBA star Steph Curry or even Mercedes F1.

Certainly, the losses of Coachella NFT holders will likely be offset. On the other hand, the trust of cultural users, businesses and organizations will take time to heal. It will take a good deal of humility for exchanges and more generally for the crypto sector to regain its place in the hearts of the general public. Too bad, alas, that the technological promises and the efforts of an entire sector are thwarted by the madness of a few greedy individuals.

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