NiftyGateway - New Invention on Digital Collectible Auctions

Sun 25th Jul 2021

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Red Lion Exclusive Artists Take

Nifty Gateway is a popular centralized custodial marketplace where artists and collectors gather to buy, sell and auction Digital Arts. Well and good just like any other. But there is more to it, security and how customer support deals with the inconveniences are questionable. Especially when Millions of $ are involved.

Amir aka mondoir one of the early adopters of NFTs and an avid collector and creator shares the bitter experience he encountered recently with Redlioneye

We explore what, why, and where direct from the premium long-time customer.

Why according to you NG is causing damage to the NFT space?

Mondoir- Flooding the market with lots & lots of drops without a proper secondary market which caused a great depreciation of value for almost all of the NFTs bought on NG and those artists which affected the whole market. Multiple collectors lost huge sums of money by collecting there and many left the space as a collector” Amir stated, as the investigation is underway, some pieces of information cannot be made public

What happened with the auction and NFT you won?

Mondoir- In an auction, if I was the winner, I have paid immediately. For example, on the Paris Hilton piece, I was using the white list credit facility and won the auction for over 1 million USD and I have paid immediately” Amir continued...The said auction, I was never a winner by definition. I ended up being 3rd and then I realised the auction was a completely new invention of NG that all top 100 bidders had to pay. Not a standard & fair auction by any precedence and it was not clear at the beginning or during the auction how this unfair invention works. I stopped bidding to win the auction as I do with many auctions where I decide to stop competing and then I realised they expect me to pay 

There is another case where NG has not paid an artist because their credit line was rugged by the winner of the auction, your take.

Mondoir- “That auction however was a standard auction and the credit line was the issue as they seem to give out $10m credit line to numerous people without proper vetting in place. causing a lot of fake bids on the NG platform as well. In my personal case, I have never gone through any sort of KYC or vetting process or even a simple consent before being given the facility however I always cleared my balance the same day or next when I used that facility. I have never had any late or delayed payback for this facility”. No explanation is needed here!

When asked about the storage of his artwork on the platform, he stressed that his account is suspended and he has no control over his assets. 

Mondoir- It is with the litigators now and it will take a lot for the case to get decided. Meanwhile, my NFTs are there and I can’t access them. Even though I have paid for them

We have half of the story and we will update once it is resolved. Always remember folks, “ Assets are valuable, and always take precautionary measures and with at most safety and security in mind. This industry is in its infancy which makes it vulnerable for bad actors to exploit.