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Many NFT projects lack proper smart contract testing, says unnamed founder

Jimmy McNelis, founder of Web3 technology company nameless, says too many NFT projects rushed to market without proper smart contract testing, potentially leading to millions in losses. says.

In an interview with Cointelegraph, McNelis said many NFT projects often hit the market without fully simulating how smart contracts work, sometimes skipping extensive audits. He suggested that he might even do it.

An example of this was observed during the sale of the Akutars NFT collection in February 2021, according to McNelis, which featured 15,000 tokens put up for sale on Winklevoss-owned NFT marketplace Nifty Gateway.

McNelis explained that while the NFT drop sold out, the big bug was the $33 million worth of Ether (ETH) generated from a sale trapped in a smart contract that developers had no access to. explained to

“It was like they could test more thoroughly in a private test environment and run tests against those sales and edge cases. I don’t know if I ever thought about it.”

McNelis stressed the importance of getting the testing phase right, as smart contract bugs cannot be patched after launch.

“The testing phase of the project is very important, as it really determines the success of the drop or launch as far as technical and market solutions are concerned.”

McNelis explained that while projects can use public testnets to conduct trials of networks such as Ethereum, many projects do not because it could open the door for copycat fraud projects. He also says some people don’t want to test their lack of confidentiality in a public setting.

“Another thing is that there are many brands that may want to explore the Web3 space but are not ready to publicly announce that they are doing so.”

Related: Central Asia, South Asia and Oceania see NFTs as ‘biggest gateway’ to cryptocurrencies – Report

Nameless was founded by McNelis in mid-2021, and the project has so far received backing from popular entrepreneur and NFT advocate Gary Vaynerchuck, among others.

Gearing up for a new product launch later this month, NFT software called StealthTest will provide a private testnet for developers to try out smart contracts for Ethereum, IPFS, and Arweave.

Regarding the NFT market, McNelis expects that interest in organic retail will continue to grow as big names continue to enter the space with their own tokenized products.

As for investments, he noted that it is still too early for major financial firms to want to speculate on NFTs themselves.

“I think institutions are still mainly focused on producing such things. I don’t think the market is mature enough to be a safe long-term investment yet.