Blockchain technology is revolutionizing the world. The way it handles data is not like something we have seen before. It has created a $1.62 trillion dollar economy that is mostly unregulated. Guys, that is insanity.
But with any new revenue source there comes a new type of person. The Scammer. The Cheater. The Bot. Today I wanted to shine some light on the good and the bad of the blockchain.
With great power comes great responsibility. Well I like to say "With great possibility of wealth comes assholes". By now we should all know about airdrops and promo releases. Airdrops are when tokens are sent to people to get the word out on that crypto or to reward people for being apart of another crypto. Promo Releases are when NFT's are created to drive up attention to an up and coming NFT release. They are most always given away free and the easiest way to do that is to create a drop for people to go claim, and usually they are limited to 1 or 2 NFT's per account.
You put up say 10,000 NFT's in the drop. Create a link and share the link with a specific start time. Then everyone mad rushes to get the stupid free NFT because we all can't help ourselves when it's a free NFT. Usually promo's have a limited number of NFT's because, well it helps drive up the talk about it.
Enter the Funko Pop Promo on August 2nd.
All you had to do was sign in at 2pm and click on the claim button. Then you would get a pack of Funko Pop NFT's for free. It is a booster pack type NFT. So after you got it you could then go and unbox it and see what you got. This leads to the second hand market being very high. The NFT's in the booster packs are pre-minted. So even if you got Mint #1 of the Promo pack the NFT's inside could already be minted at # 10,000. So until someone unboxes Mint #1 it could be in the pack you hold.
This is where "MarketSecret" enters the scene. MarketSecret may not be a bot account himself but has bots working for him to collect these free packs and sell them himself. Each account is only allowed to redeem 1 pack each. But if you have 50+ BS accounts that can automatically claim for you and send them to you then you could get a lot of packs and sell them for WAX.
MarketSecret. This is a WAX address that has amassed 52 promo packs in a 15 minute window.
If you go to his account and look through his transfers you can see from 2:00pm EST to 2:15pm EST he was transferred 52 Promo Packs. Keep in mind that he did NOT buy these 52 packs. He was given those 52 packs The 1st pack he got was from him (or her) claiming the promo pack themselves.
Premint.nft is the address where the promo packs come from and this one at exactly 2pm (when it opened) was the one he was allowed to get.
And these are some of the ones he was not allowed to get...
There are 51 extra packs he was transferred in that 15 minute window.
What is the going rate for a promo pack right now less than a day later you ask??? 97 WAX
I know what you may be thinking. Hey TrocProcLock you said this was the 'Good' part of the blockchain, but this is getting pretty ugly. And you are right. So let's get into how this is good.
#1) The Wax blockchain has a public ledger. Which means that if your WAX account buys, sells, trades, transfers NFT's I can find out. I can look at all your transactions. It is what let me find that MarketSecret got 52 promo packs.
#2) With visibility we can make changes. If we couldn't see that bots were abusing the system then it might not ever get changed. Now that we know maybe something can be done.
Without that open blockchain technology I would never be able to put this list together. Here is every Promo Pack MarketSecret has sold. You can check every transaction if you want. Or just go here and see for yourself: https://wax.atomichub.io/explorer/account/marketsecret#sellHistory
He averaged 41.3 WAX per promo pack he sold. Which is about $15 per pack.
I do not include the buyer's WAX address as anything negative to them. I include it to point out that everyday normal people are paying for these packs because they missed out on getting one for free. They wanted one so they bought probably the cheapest one at the time and because of that this MarketSecret made $780.51 in selling these promo packs. That is 5,148 WAX that he made from cheating the system.
Some of you may say well he could have had his friends send him the promo packs. And this could totally be legal. And yeah sure you could be right. But since it's an open blockchain lets take a closer look shall we?
LengthMuscle sent him a Promo pack. Let's look at their transaction history:
Don't believe me? Check it for yourself: https://wax.atomichub.io/explorer/account/lengthmuscle#transfers
How about another 'person' who sent MarketSecret a promo pack? Mannermerely?
Again check it for yourself here: https://wax.atomichub.io/explorer/account/mannermerely#transfers
And what is interesting is that this account has been sending other promo items to MarketSecret as well. Check out his account above. You can see ALL his transactions.
This goes on and on for every one of the 51 accounts I checked. This is a serious problem that needs to be addressed. Sure there is no way to prove 100% that MarketSecret is using these accounts as bots to snatch up all the promo items and resell on the secondary market. But all indications point to that it is exactly what he is doing.
The other flipside to this story is the current market on GPU's right now. Crypto Miners love the high end GPU's so that they can mine tokens with it. That has caused the gamers who want to play games with them out of luck. People have been using bots to buy up the extra GPU stock from online retailers so quick that normal people can't get them.
Then those people will go and sell the GPU's on websites like ebay for prices like 200% MSRP. It screws over normal people trying to buy products. It truly hurts those who want that item. And if I was to go onto ebay and try to find say a RTX 3060 GPU I would have no idea where the item came from.
Did they buy it online via a bot and are now just upcharging me? Was it a birthday present some kid got and is now selling it to make money to buy something else? Was it apart of NewEgg's bundle and the buyer didn't want it? Was it used for mining Ethereum and now they are trying to liquidate their assets?
Here are the most recent RTX 3060 GPU that were sold on ebay.
The only thing you can go off of is the description of the item (if it's truthful) and the seller's history. But that isn't always a very telling way to get to the truth and most times you will never know the type of person selling the item.
Oh and keep in mind the MSRP for the Nvidia RTX 3060 is $399. These are selling for up to 3 times as much. It's blatant robbery. What can we do about this? Well not much except not pay these ridiculous prices. That being said other people will still pay the prices because they either have the money to waste or have serious FOMO. Those of us who can wait though will get the product for MSRP one day.
What can we do about MarketSecret? Well we can write articles like this to give it it's time in the limelight and hopefully get more traction so that something will be done about bots. We can also not buy anything from the accounts we know are using bots. Besides that there is again nothing much we can do. But because of the blockchain we at least now know what people are up to and how they get their items they are selling. If nothing else comes out of this insane Crypto Boom, we have the underlaying technology that isn't going away anytime soon.
Side Note: While I love the fact that on WAX you can see the transaction history and basically everything about a account I also understand and know there is need for blockchains where this isn't an option. I have written about it before how this could lead to a very awkward time in the future when Google and the likes put together bios with your wallet ids and can see everything you bought and target better ads to you. It's a scary future but it's the options we have now.
Huge thanks to B8mter for getting me started down this rabbit hole! Give him a follow!