70% of all digital art is centralized, including the world’s most expensive NFT.

Originally published on frontruncrypto.com — click here to subscribe for free.

Dear frontrunners,

In this two-part series, we explore the never-ending centralization risk vectors of NFTs, quantify the impact on the Ethereum chain, and review the types of storage solutions used by NFT hosting providers.

Part 1 outlines the scope of NFT centralization on the Ethereum blockchain. We frame this against the broader FTX NFT collapse, then provide 5 examples of trending NFT projects, most with vectors of centralization, including the world’s most expensive NFT.

Part 2 will cover the types of storage facilities available to NFT creators, the evolution of on-chain storage and the cost of moving centralized NFT providers to the blockchain.

I feel compelled to write this because it is now apparent that the FTX death spiral has impacted our friends in the NFT ecosystem. For those who need to review the FTX wealth destruction, FTT ponzi tokenomics, crypto firm collusion, media malfeasance, and the final capitulation, click on any of the aforementioned links.

The demise of the FTX platform revealed a recurring problem and centralization vector that permeates across the NFT ecosystem: storage providers are not decentralized.

FTX.us used a centralized storage provider for its NFT marketplace. All NFT marketplaces which sold NFTs hosted on…