Web3 is Going Just Great

April 7, 2024

Bored Ape-themed fast food restaurant shuts down

A photograph of a restaurant with a sign featuring a Bored Ape NFT and the text "Bored & Hungry". The building is vacant and a sign shows "Chile Verde Mexican Food coming soon"

It's hard to believe that the hamburger joint themed around the owner's Bored Ape NFT failed to take off. Although there was novelty value in the themed restaurant, which for a time boasted that it accepted cryptocurrency payments, the excitement seemed to wear off quickly after a few early news articles. After a while, the restaurant's crypto payments became spotty, with employees saying the system was unwieldy and unpopular among customers.

Some more recent Yelp reviews described fairly mediocre food, which "[t]he NFTs don't make up for".

The restaurant opened in April 2022, a month after owner Andy Nguyen purchased Bored Ape #6184 for $268,000, along with three Mutant Apes for an additional combined $187,000. #6184 became the restaurant's logo, and the others were incorporated into the restaurant's branding. The NFTs haven't been resold since, although it's unlikely they could recoup close to their original purchase prices — Bored Apes have been averaging a little under $50,000 in recent sales, and Mutants around $8,500 each.

March 26, 2024

"Munchables" crypto game exploited for $62.5 million

A small round furry shape with big blue eyes and thin legs, somewhat resembling a soot sprite

A Munchable (attribution)

The "Munchables" crypto game explains: "Schnibbles grow on every realm across the Munchable's world. Each realm has their own unique and distinctive schniblet, and the Munchables react differently based on their compatibility to the schniblets fed to them. When creating an account for the Munchables, you must choose the location of your snuggery." Right then.

Things went awry in the land of the schnibbles and snuggeries when an attacker siphoned around 17,400 ETH ($62.5 million). Various descriptions of the attack circulated, with blockchain sleuth zachxbt attributing it to a recently hired developer, and crypto developer 0xQuit claiming the theft appeared to have been "planned since deploy".

Some began discussing the possibility that the Blast layer-2 blockchain might forcibly roll back the chain to "undo" the hack. Some have argued this is contra to the crypto ethos or would set a bad precedent, while others have argued that as a blockchain focused more on gaming and experimentation and less on decentralization and other facets of crypto ideology, it would be a reasonable step.

Some hours after the attack, the exploiter was convinced to return the funds.

"Crypto game ‘Munchables’ on Blast exploited for $63M", Cointelegraph [archive]
Tweet by 0xQuit [archive]

March 22, 2024

Previously rug-pulled Lucky Star Currency project somehow rugs again

(attribution)

The astrology-based Lucky Star Currency project rug-pulled for $1.1 million in October 2023. You'd think that might be the end of it, but on March 22, 2024, ownership of the project was transferred to a malicious smart contract that then drained tokens priced at almost $300,000 from those who still held them.

You almost have to admire the tenacity.

Tweet by CertiK [archive]

March 16, 2024

Wilder World game suffers $1.8 million theft, blames contractor

(attribution)

Wilder World is a blockchain-based racing game that uses all the buzzwords: blockchains, artificial intelligence, and metaverse. On March 16, someone with access to the project deployer's private key upgraded legacy contracts and transfer the project's $WILD and $MEOW tokens to themselves. Altogether, the attacker profited 515 ETH (~$1.8 million), which they then laundered through the Tornado Cash cryptocurrency tumbler.

The project blamed the theft on a previous contractor who had the private key. They also explained that the attacker seemed to be a developer based on the fact that they had "specialized knowledge of ZERO's internal security systems".

"March' Major Private Key Compromises", CertiK [archive]

March 16, 2024

Remilia Collective reports multi-million dollar hack

An anime style illustration of a person with green hair wearing a cat ears headband and light blue blouse with a peter pan style collar. At the bottom of the illustration are defense and attack points bars like in a card game.

Milady #5539 (attribution)

"Charlotte Fang", the leader of the controversial Remilia project (known for its Milady NFTs), claimed he was hacked and drained of ETH and NFTs potentially worth several million dollars. Although the project's treasury used a multi-signature model, the private keys were stored in one password manager, which Fang says was compromised.

The attacker stole around 490 ETH (~$1.8 million) and $58,000 USDC, along with more than 130 Milady NFTs, 320 Remilio NFTs, and hundreds of derivative tokens issued on the NFTX platform. Based on floor prices, the assets are valued at north of $6 million.

The mechanism of the attack is still uncertain, though Fang has said he suspects malware that could have intercepted credentials to his Bitwarden password manager. Some have expressed skepticism around the "hack", suggesting it could have been inside job. The Remilia group had suffered a separate $1 million loss in September 2023 — blamed on a rogue developer — and failed to implement many security safeguards after that incident.

March 15, 2024

NFPrompt discloses hack

(attribution)

A Binance-incubated platform called NFPrompt claims to be "the first Prompt Artist Platform in Web3" — with "prompt artist" referring to people who come up with prompts to feed into large language models. More succinctly, it's a platform to sell the NFTs you've made out of AI-generated images.

The platform announced on March 15 that it had suffered a "critical security incident" that it attributed to "a group of hackers" who were able to gain access to funds belonging both to the project's users and the project itself. They did not disclose how much was taken.

The project announced that it was working with the FBI, and had contacted centralized exchanges to ask them to freeze stolen funds.

Tweet by NFPrompt [archive]

February 16, 2024

Yuga Labs acquires Moonbirds amid speculation of insider trading

Pixel art of a white owl with one squinting eye, wearing a forest ranger hat, on a light green background

Moonbirds #768 (attribution)

On February 16, the NFT giant Yuga Labs announced it would be acquiring the Moonbirds NFT project. This adds to list of blue-chip NFT collections controlled by Yuga Labs, which already included their original Bored Ape Yacht Club and spin-off NFT collections, and the CryptoPunks and Meebits collections they acquired in March 2022. Decentralized!

Anyway, after the acquisition was announced, prices for Moonbirds spiked, as was to be expected.

What wasn't expected was a notable spike in trading in the days leading up to the acquisition announcement, in which some wallets began accumulating large amounts of Moonbirds and related NFTs. One such wallet purchased 80 Moonbirds, 71 Moonbird Mythics, 28 Oddities, and 13 Mythic eggs in the week leading up to the announcement, and enjoyed several hundred thousand dollars in profits after the acquisition was announced.

February 14, 2024

Creator of "Robotos" NFT project, once collaborating on a TV series with TIME studios, accused of rug pull

A doodle of a robot with a gold crown, a blue suit jacket over a white shirt and black tie, and pink eyes

Roboto #2767 (attribution)

Pablo Stanley, an artist who created the "Robotos" generative NFT collection, posted two final messages from the Robotos Twitter account. First, "it was a good run! thank u, all!", then an image of the Twitter log-out button with "forever and ever".

Rewind to November 2021, when it was announced that TIME Magazine's film and production studio would be collaborating with Stanley to develop a children's animated TV show based on the Robotos NFTs. The announcement helped to drive interest in the NFT collection, which reached a peak floor price of around 1.5 ETH (~$5,000 at the time).

Since then, no show has materialized, and the collection's floor price has dwindled. NFTs from the collection have recently sold for around 0.015 ETH (~$42). In the project Discord, Stanley claimed that TIME had lost interest in the project after the writer's strike. He also wrote that he had lost faith in web3: "Glad you still believe. It's hard for me to believe in it anymore." He explained that he had viewed Robotos as a "personal side project", and that he was "sorry if that's not enough for most people, but that's all I have the appetite for, and that's all I can offer."

February 9, 2024

Yuga Labs bungles "free" Otherside NFT drop

An illustration of a grey cylinder, seemingly made from stone, with glowing gold light inside it appearing through some cracks and designs

yuga-ship-part (attribution)

Some fans of Yuga Labs (the company behind Bored Apes and the much-anticipated Otherside metaverse gaming project) are questioning how much progress the company can really have made on the as-yet-unreleased flagship Otherside gaming project, if they managed to screw up an NFT design this badly.

Yuga released a new NFT, intending to function as ship parts that could be combined to create a ship to be used in the game. Players who had completed an Otherside minigame would be eligible to mint these NFTs for free. However, the "free" NFT cost around $30 in gas fees to mint. Worse still, the parts were meant to be repeatedly traded and combined to make new parts and ships, leading fans to wonder why on earth they decided to release the project on a blockchain where each transaction often costs tens of dollars.

Apparently realizing they'd made a mistake, Yuga first responded by announcing they would gift people free "Catalyst" NFTs to make it up to them. This only sparked further rage, though, as it was seen to dilute the value of the Catalyst NFTs and throw off incentives.

Yuga later reversed course on this decision, instead deciding to reimburse the gas fees.

This was not Yuga Labs' first gas-related fiasco, after they caused gas fees to spike into the thousands of dollars across the entire Ethereum network in April 2022 during the initial Otherside land sale.

One observer wrote, "[W]hat's the plan for the marketplace in Otherside that is supposed to support millions of daily microtransaction? I'm afraid this means Otherside is much less developed than we would like to hope. These decisions are entry level mistakes, not mistakes we should see from the biggest company in the space developing a metaverse. If the Otherside mint wasn't an eye opener, then this wont be either."

January 20, 2024

Dwight Howard's NFT project flops

Ballers NFT project artwork (attribution)

NBA star Dwight Howard is clearly at least a year (probably two) late to the time when celebrities and star athletes could drop some low-effort NFTs and sell out the whole batch immediately. After announcing his "Ballers" project on January 20, offering 3,000 NFTs for a mint price of 2 AVAX (~$60) apiece, he only managed to sell about 300 of them within a day or so.

After the dismal launch, Howard tried a few somewhat desperate-seeming moves to try to attract interest in the project: promising to send free crypto to some holders, redoing all the art after criticism of its quality, and slashing the NFT supply to 1,500. Despite all that, only 465 NFTs have sold (15% of the original supply, netting Howard 930 AVAX — around $28,400).

The flop was so bad that a member of the team behind the Avalanche blockchain put out a tweet distancing themselves from the project, stating that they didn't even know about the project until he announced it. "Gone are the days that individuals/Brands with large followings can just drop IP related NFTs out of nowhere and expect it to do well," they wrote, seemingly criticizing Howard's approach by writing that NFT creators must "mak[e] sure to do it in an organic way with proper intentions."