Former SEC official, John Reed Stark, has described the latest NFT Trader hack as an epic tragedy, urging investors to beware of non-interchangeable collection tokens. The hacking incident affected the Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), NFT World of Women, VeeFriends and Art Blocks collections, resulting in millions of dollars in investor losses. Although the BAYC and MAYC tokens were recovered by the hacker for 120 Ether, Stark believes the payout could incentivise further criminal activity.
"This is a tragedy of epic proportions. I would never have thought that JPEG files with pictures of silly monkeys could be stolen so easily. Get Jack Reacher, Jack Bauer, or maybe Jack Black to make a film about this destructive adventure," Stark noted with irony.
The former official believes that such attacks have become overly prevalent in the NFT ecosystem and the market is completely "rigged." The rise of fraud and market manipulation of NFT is a serious concern, which is why Stark advises avoiding investing in collectible tokens, calling NFT a scam.
The expert has previously expressed his dismay at the bored monkeys in tinsel and high hats, warning against considering them as sound investments. In addition, Stark expressed his negative stance on USDT, noting the lack of proper regulation of stablecoins in the US.
