FTX Collapse: Lost Coachella NFTs in the Metaverse

End of the party for the Coachella NFTs? – The FTX octopus bankrupt called the death knell for the number of partnerships around the world. Companies, individuals, investment funds, everyone is affected. To the adventurous cultural initiatives that had dared to use the blockchain. This is especially the case with Coachella Festival Held annually in April near Palm Springs. Dive into a crypto-musical drama.

Coachella NFTs held hostage at FTX

It all goes back to last February when the festival collaborates with FTX.US an NFT collection with a total value of more than $1.5 million. Two months before the highly anticipated festival, the first since the end of the COVID-19 pandemic. Enough to get music lovers excited for a party. The collection even contains 10 NFTs Coachella Keys giving lifelong access to the pop and electro festival, as well as VIP benefits.

But following the FTX debacle, all these beautiful NFTs are now stuck on the platform. No way for the unfortunate holders to access it. Coachella employees also say they are shocked by the recent events. On their disagreement, they confirm the bad news.

“We are currently not in contact with the FTX teams. We have set up an internal team to develop a solution using the tools at our disposal. Our priority is to successfully remove NFTs from the FTX platform. »

Coachella employee

Cryptos and NFTs, captives of the FTX platform

Some holders would still have managed to get their NFTs off the platform before the crash. However, the latter are not yet at the end of their sentences. Because these NFTs would now be devoid of visual (artwork) to display. This is due to the decommissioning of the FTX servers responsible for hosting the images.

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FTX, the lack of confidence

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

Sam Schoonover, Chief Innovation Officer at Coachella

Despite FTX’s radio silence, injured holders can still rely on the Coachella organization for their claims. It is therefore likely that compensation can be found. Whether restoring NFTs, issuing a new collection or even providing an equivalent physical pass, the solutions are many.

Because currently funds, cryptos and NFT are blocked on FTX with no assurance of their recovery. Among these virtual works we find collections related to Tomorrow LandNBA star Steph Curry or even Mercedes F1.

Certainly, the losses of the NFT Coachella holders will likely be offset. On the other hand, the trust of users, companies and cultural institutions will take time to heal. It will take a good dose of humility for the exchanges and more generally for the crypto sector to regain its place in the hearts of the general public. What a pity, unfortunately, that the technological promises and the efforts of an entire industry have been ignored by the madness of a few greedy individuals.

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