Niftex on Hold After Vulnerability Was Found

Shared ownership trading platform Niftex has halted all trading of sharded digital assets after a community member found a vulnerability in their smart contract. The vulnerability concerns ownership over the non-fungible token itself, and not the shards that came from it. Niftex boss Joel Hubert thinks that a token swap is the most likely solution to solve the problem.

"The contracts were audited internally and externally, but clearly not enough", Huberts responded on the platform's Discord channel. In an official statement the CEO said - with a sense of irony - that Niftex actually used the vulnerability to 'safeguard the NFTs'.

Niftex is now planning a buyout for all fractionalized NFTs, and these will be placed under the control of the exchange. Liquidity providers on Uniswap will have access to their tokens again on August 3rd. Until that time all trading and shard launches are on hold.

Niftex launched two months ago

The concept of partial ownership by sharding tokenized digital assets is not that old yet. Two months ago Niftex launched its platform, offering partial ownership over some land inside Decentraland. Since then the platform has offered items from Marble Cards and several crypto artists. However, the major breakthrough happened when mystic Axies from the battle game Axie Infinity were offered on the platform.

Within five hours 21 people bought shares of ownership over Almace, which the exchange valued at $9500 during the auction. That day the blue Axie reached a value of almost 100 thousand dollars, before falling back to its current value of 90.18 ETH. This still means that Almace's value is almost 22 thousand dollars.

The success of sharded NFTs and shared ownership spawned several new initiatives. Analytics website DappRadar launched ShardMarketCap.io. On this page the market caps of individual assets with shared ownership can be seen in one overview. Venom is the most valuable with 43 thousand dollars, followed by Hauteclere with 37 thousand. Then comes Almace, the Triple Mystic Vital Vampire and Skull Candy completes the top five. All these are creatures from the game Axie Infinity.