Welcome to The Drop NFT Newsletter. Breaking NFT news, project breakdowns, & artist spotlights - We do the heavy lifting so you don't have to! Join our Discord to win raffles and allow list spots!
What's Dropping ⚡️
High Fashion brand Gucci is now accepting Apecoin via BitPay in select boutiques across America. (Twitter)
Magic Eden has announced that it is adopting Ethereum and will be a cross-chain NFT marketplace. (The Drop)
Last night it was made known that Solana wallets were being drained from a hack that people still are scratching their heads over. Read more about it here.
This marks the 5th week straight of inflow for crypto, a clear bullish sign. (CoinShares)
Educational publisher Pearson aims to solve textbook renting issues, creating what may be the world's first textbook NFTs. (TheGuardian)
An upcoming Indie film titled "18 & Over" will be released with accompanying NFTs of one of the main characters. (Variety)
ETH 2.0 is looking to be much better for the environment, consuming less energy and knocking miners down a rung. (IndianExpress)
You may have seen viral videos of people buying and opening mystery boxes that they order through the mail. The web 3 equivalent of that has emerged, with NFT mystery boxes showing up on different marketplaces. (CryptoNews)
A prominent creator in the Web 3 space AmericanApe.eth (BAYC #5636) will soon be dropping their 2nd Digital Edition of their Bored Ape-themed comic series, which are burnable for physical copies. (Twitter)
OpenSea finally bought their ENS domain "opensea.eth" for around $163,000 USD. (@lkingl_eth)
Project Spotlight: The Currency by Damien Hirst
Britain’s renowned artist Damien Hirst has destroyed 4,851 physical works of art from his collection The Currency. And no it's not because he’s gone bonkers, instead, he gave holders the choice of either keeping their NFT at the expense of its physical version being burnt or obtaining the physical version of the NFT at the expense of burning the digital token. The numbers are in and 5,149 people decided to burn their token for the physical piece while 4,851 people held on to the digital token.
The year is over boom 💥 that was quick! and we have all had to decide: NFT or physical? The final numbers are: 5,149 physicals and 4,851 NFTs (meaning I will have to burn 4,851 corresponding physical Tenders). https://t.co/xCUJ0gviZ0
— Damien Hirst (@hirst_official)
Jul 27, 2022
The collection debuted at a $2,000 floor and has to date done roughly $89 million in sales. While volume has recently slumped secondary sales still fetch roughly $7,500. Hirst was also the mind behind Drake’s cover art for Certified Lover Boy and rewarded Currency holders with a CLB based airdrop. Despite the money-centric name of the NFT project, Damien’s concern wasn’t necessarily money but rather the way that art actually transforms into a type of currency itself. And this is particularly true in the world of NFTs because of how they are represented, distributed, and made accessible.
When an entire collection can be found on a single page and when everybody is aware of how it's performing in the market, the piece’s value is attached to it tightly. When holders made their individual decisions to burn either the token or the physical copy they consequently made one set more scarce than the other set. In terms of currency, we may very well witness higher resale values on the digital version as opposed to physical ones. But of course, scarcity isn’t the only factor that plays into the works’ evaluation, some people may prefer to display a physical piece in their home and pay a premium for that.
Epic 🧵 Of The Week
What’s the difference between those that make Millions in NFTs vs those that lose it all?
Answer: Managing RISK.
1/ A quick thread
— 🍞 Matty (@DCLBlogger)
Jul 29, 2022
🚨 Be Careful Out There 🚨
Solana Wallets Compromised
This is ongoing and not much is truly known about what happened last night. What we do know is around 8,000 Solana wallets and $5 million in crypto have been exploited (predominantly Phantom) and the hackers were able to access funds NOT because of suspicious links clicked on by users but actually because private keys were accessed somehow. Below you will see a thread outlining what we believe happened.
🚨 Widespread Solana private key compromise 🚨
- attacker is stealing both native tokens (SOL) and SPL tokens (USDC)
- affecting wallets that have been inactive for >6 months
- both Phantom & Slope wallets reportedly drained https://t.co/AkZXOGLD0Q
— foobar (@0xfoobar)
Aug 3, 2022
Ledger Raffle 🔒
Here at The Drop we can't stress security enough. That's why we are raffling off a free Ledger to anyone that follows the steps in this Twitter post. The winner will be announced in 24 hours!
We take security so seriously here at The Drop that we are raffling off a @Ledger
A FREE Ledger will be bought for a lucky individual who:
✅ Sub to our newsletter w/ the Typeform below (if already subbed still sign)
✅ Like/RT/tag 3 friends
24 hr. go!
— The Drop (@thedropnft)
Aug 3, 2022
Nomad Protocol Exploited Of $190 Million
Well, it happened again. Another protocol got exploited. But this time, the door was left wide open. There was no need for social engineering or black hat hacking. The door was simply WIDEEEEE open.
1/ Nomad just got drained for over $150M in one of the most chaotic hacks that Web3 has ever seen. How exactly did this happen, and what was the root cause? Allow me to take you behind the scenes 👇 https://t.co/Y7Q3fZ7ezm
— samczsun (@samczsun)
Aug 1, 2022
On Monday evening, reports started surfacing that stated that Nomad, a protocol that prides itself on being a “security-first cross-chain messaging” platform, was getting drained. This protocol allows users to bridge their tokens between chains, thus allowing users to interact “securely” in a multi-chain ecosystem. You could bridge in with one currency, and bridge out with another, using a confirming message across chains to do so. As tweeted by samczsun, a researcher at Paradigm, the main issue was that you could bridge out 0.01 WBTC and get 100 WBTC bridged in. At first, it seemed like a decimal point issue that could be corrected swiftly. Some funds would have been lost, but most of them should’ve been recoverable.
In this circumstance, there happened to be a backdoor. The backdoor was created because of routine upgrades, and it allowed the 0x00 root to be trusted. This would allow an individual to use that root to confirm the transaction because the contract accepted it, and then replace that address with the other person’s and rebroadcast it. According to samczsun, anyone could have carried out this exploit because there was no programming knowledge required.
Update: We are working around the clock to address the situation and have notified law enforcement and retained leading firms for blockchain intelligence and forensics. Our goal is to identify the accounts involved and to trace and recover the funds.
— Nomad (⤭⛓🏛) (@nomadxyz_)
Aug 2, 2022
When all was said and done, more than $190 million worth of funds were drained from the Nomad bridge. All because of a routine upgrade that made the 0x00 root acceptable when confirming messages. Something as simple as a root. This shows that we still have a lot to learn about defi and the inner workings of secure transactions. Especially if protocols that wear the word “security” with honor are getting exploited so easily. WAGMI.
Meme Drop 💧
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Disclaimer: The Drop DOES NOT provide financial advice. All content is for informational purposes only. The Drop is not a registered investment, legal, or tax advisor or a broker/dealer. Trading any crypto-related asset is extremely risky and could result in significant capital losses.
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