Recently, some Twitter users tweeted that smart contract functionality around BAYC was not consistent and causing drops. Typically, the BAYC function allows an infinite volume of minting of new Apes for specific private key holders.
So, what exactly is causing the BAYC smart contract functionality to act out? Let’s find out:
Nature of a Smart Contract
In order to understand the cause of concern that ties together with the BAYC smart contract function, you should have a basic understanding of what makes up a smart contract. In layman’s terms, a smart contract refers to a stored digital contract in the form of code that is stored on the blockchain network. Once a user meets predefined conditions, it triggers the automated execution of the contract.
The truth is that smart contracts are carefully designed to fulfill the terms and conditions of an agreement between involved parties automatically. When it comes to NFTs, the token information like identities, transactions, and ownership details are stored in a secure fashion within a smart contract. Remember that majority of NFT smart contracts have pre-established rules to trade NFTs.
So, What’s the Issue?
Well, there is one private key that can now mint a multitude of newly bored apes at any given time. And if the contract owner gets phished or hacked, you’re bound to see thousands of newly minted cast-off bored apes into the market.
Strong Reaction from Crypto Community
Once the BAYC smart contract function came into the spotlight, it was only a matter of time before NFT owners and crypto investors took notice. In fact, crypto community investors immediately reacted to the troubling story of minted Bored Apes.
One user managed to highlight that the crypto wallet was active on February 3, 2022. It means the wallet can change the metadata of each ape in random order. In addition, crypto community members took the stand to call out Yuga Labs, which serves as the parent company of the Bored Apes.
In fact, users raised concerns that the Apes collection company dealt with the situation just like they handle their discord. And that’s because the discord channel of Bored Ape was breached not so long ago compromising millions of dollars worth of NFTs. What’s startling is that Bored Apes is not alone – there are other NFT projects experiencing the same smart contract functionality issues.
Brace for Impact
All things point out that the smart contract function issue can have a direct negative impact on NFT owners and that means the wallet is vulnerable to hacking. It is crucial to understand that the value proposition of Bored Apps is their uniqueness and rarity. If a multitude of new NFTs is minted and dumped, it would decrease the value of the Bored Apes NFT on a massive scale.
In fact, the crypto community agrees that the creation of a new line of Apes would drive down the value of Bored Apes. Some suggest that the newly minted Apes can become even more valuable than the originally-minted collection. However, when it comes to NFTs, there is no certainty.
The official word from BAYC is that they would withdraw the access and ownership soon. Alas. it may come as a surprise, but BAYC has yet to revoke ownership.