Jimmy McNelis, founder of unnamed tech firm Web3, says too many NFT projects are being rushed to market without proper smart contract testing – which could lead to millions being lost.
In an interview with Cointelegraph, McNelis suggested that many NFT projects often rush to market without fully simulating how its smart contracts will work, and in some cases even skip extensive audits.
McNelis said such an example has been observed when selling the Akutars NFT collection in February 2021 — containing 15,000 tokens that were up for sale on the Winklevoss-owned NFT Nifty Gateway marketplace.
“That was the kind of thing that they could test more fully in a private test environment and run tests against those sales and edge cases that they may or may not have taken the time to do or thought to do on a public test network. .”
McNelis stressed the importance of getting the testing phase right, as smart contract bugs cannot be fixed after launch:
“The testing phase of a project is extremely critical because it will really determine the success of your drop or launch in terms of technical and market solutions.”
McNelis explained that while projects can use public testnets to run trials for networks like Ethereum, many don’t because it could open the door to copycat scam projects. He also says some don’t want to test the lack of confidentiality in a public setting.
“The other 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.”
Nameless was founded by McNelis in mid-2021 and the project has so far received support from popular entrepreneur and NFT advocate Gary Vaynerchuck among others.
It is preparing to launch a new product later this month with NFT software called StealthTest, which provides private testnets for developers to test smart contracts for Ethereum, IPFS and Arweave.
Commenting on the NFT market, McNelis expects that large companies will continue to accumulate their own tokenized products and that interest in organic retail will continue to grow.
He noted that in terms of investment, it is still too early for major financial companies to want to speculate on NFTs themselves.
“I think institutions will continue to be primarily focused on producing such things. But some of the bolder ones may speculate with some NFTs, but I don’t think NFTs are mature enough yet and the markets are mature enough yet for safe long-term investments,” he said.