Elon Musk Calls NFT Only URLs For JPEG Doang Images...

The founder of Tesla and SpaceX, Elon Musk. (Photo; Doc. Cryptotendencias)

JAKARTA - Elon Musk, CEO of Tesla and SpaceX, recently criticized several Non-Fungible Token (NFT) projects in Joe Rogan's podcast interview. Musk highlighted the issue of on-chain asset storage and emphasized the importance of transferring complete artwork directly to blockchain.

Musk said, "NFT isn't even on the blockchain - it's just a URL to JPEG." He argues that if the company that stores the image suddenly goes out of business, the NFT owner will lose access to the asset.

Only information, URL or Unform Resource Locater, is a unique address used to identify and pinpoint the location of a source on the internet. URLs usually start with "http" or "https" followed by more specific domain names and source addresses.

URL allows users to access web pages, images, files, or other online sources by following the appropriate addresses, thereby facilitating navigation and access to various content in cyberspace.

One example mentioned by Musk is the NFT Coachella incident. In February 2022, Coachella sold $1.5 million of NFT on FTX.US. However, after FTX had a problem, this NFT was inaccessible again, leaving buyers without the promised assets.

However, Musk's statement does not apply to all NFT projects. Some projects, such as CryptoPunks, CyberBrokers, and Bitcoin Ordinarys, keep artwork on-chain, ensuring that the artwork remains accessible as long as the blockchain runs.

Musk's criticism highlights the importance of proper security and storage in the NFT ecosystem. This is a warning to communities to continue to strive to raise standards and address the risks associated with these digital assets in the future.