Adidas has been one of the many corporations that have joined the blockchain world and started its own NFT collection. The company is also in talks with some of its partners about being part of a metaverse. This weekend Adidas kicked off its first NFT collection which was a quick sell-out but there were many issues under the surface.
The sale was for limited edition Adidas NFTs which sold for 0.04 Ethereum. Each wallet that participated was capped at 2 tokens. Users were able to get around this by having multiple wallets going for NFTs at the same time, but due to the large queues and demand, this was not always successful. After the sale sold out, many people noticed that one user had purchased 330 NFTs from one wallet which raised alarms.
This user had found an exploit in the smart contract which allowed them to scoop up 165 times more NFTs than allowed. The smart contract used in the auction had a block of code that checked the wallet to see if they had purchased any tokens before. The exploiter realized that this check did not account for smart contracts buying NFTs. When purchasing using another smart contract there was no check or limits on the purchases.
There has been no official word on what will happen to these NFTs. The user spent 66 Ethereum to purchase the limited-edition collectibles. To make sure the large order went through during the peak of the demand, the user sent the transaction with a fee of over $100,000. Many believe there should be action against the exploiter as there were several people who did not manage to mint their own NFT during the sale.
Big NFT releases in the future will need to ensure they fix this exploit before minting begins. This issue can be avoided in the future by having the smart contract check and exclude contract addresses from purchasing.
New companies in the industry will be quick to learn that coding smart contracts isn't as easy as it sounds. This is why blockchain developers are one of the highest in-demand jobs out there.