According to him, contrary to popular belief that non-fungible tokens (NFTs) will last forever on the blockchain, a number of factors can terminate their existence.
The software engineer scrutinized the blockchain data of two prominent NFTs. He discovered that they contained either a URL address or an IPFS hash. Put differently, the existence of these tokens is tied to the continued operations of the marketplaces where they were purchases. Wareing tweeted:
According to Wareing, the NTF token for CROSSROADS s a JSON file being hosted on Nifty Gateway servers. What this means is that the token might cease to exist if the marketplace stops trading. If this happens, the token could become worthless.
In both cases, the buyers of these tokens will no longer be able to prove their ownership if these NFT marketplaces go out of business. Wareing asserts that the industry is built on a “house of cards,” predicting that every NFT sold so far will eventually become “broken” within the next ten years.
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Source: Cryptocurrency - investing.com
