Crypto exchange FTX collapse made lifetime NFT Coachella pass useless
10 Festival attendees paid a total of $1.5 million for the opulent packages; as a result, they are no longer able to withdraw their assets from the NFT marketplace, and some FTX-minted NFTs are also damaged.
Coachella 2019 weekend 1 Photo credit: Coachella
Owners of an NFT Coachella Key, which offers lifetime passes in the form of NFTs, are currently unable to access their item due to the failure of the cryptocurrency exchange, FTX.
As part of their brand-new NFT collection called “Coachella Collectibles,” the California-based festival sold 10 lifetime passes for an astounding total of $1.5 million in February. The range was presented as an “eco-friendly marketplace” with lifetime passes, digital collectibles, and art. Two of the passes were sold for more than $250,000. However, since the FTX cryptocurrency exchange failed, owners are uncertain as to whether the permits are still legitimate.
We’re actively working on solutions and are confident we’ll be able to protect the interests of Coachella’s NFT holders. – Sam Schoonover, Coachella’s innovation lead
Due to the closure of the platform, those who had saved their NFTs within the FTX exchange are no longer able to access them. One owner of a Coachella Key informed Billboard that they had successfully removed their NFT from the FTX exchange prior to the company’s failure, but that it did not seem to be functioning in their own wallet.
Coachella collaborated with FTX, the second-largest cryptocurrency exchange in the world, to market its opulent NFT packages. However, FTX recently filed for bankruptcy as a result of the market collapse.
When declaring bankruptcy on Friday, November 11, FTX blamed its decline on a “severe liquidity crisis.” Later, Temasek Investment wrote off a $275 million stake it had in the cryptocurrency business.
Like many of you, we have been watching this news unfold online over the past few days and are shocked by the outcome. We do not currently have any lines of communication with the FTX team. We have assembled an internal team to come up with solutions based on the tools we have access to. Our priority is getting Coachella NFTs off of FTX, which appears to be disabled at the moment. – One staff member wrote on a Discord server
In certain instances, it appears that FTX server difficulties have prevented even users who transferred their NFTs to external, self-custody wallets from viewing the NFT artwork. Additionally, many of the projects that were introduced through the FTX NFTs marketplace no longer have working links.