Nifty Gateway Signals Attack on NFT Art Flippers with New Community Guidelines

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1 Second Sellout

Nifty Gateway is arguably the leading NFT art platform at this point in the game. New drops of art sell out at astonishing speed and the secondary market is incredibly active. This success has led to a situation in which many buyers are frustrated at being blocked out of sales by bots and quick flippers often dominate the secondary market. Nifty Gateway is renewing attempts to address such issues as signaled by upcoming changes in its community guidelines. Currently these changes are in a discussion period with members.

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Like TicketMaster in the 90’s

Yes, you read that opening tweet right. Some drops on Nifty Gateway have sold out in a second. That’s the power of automation at work and it’s been frustrating for potential buyers who are poised for action only to see high value crypto art slip through their hands.

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Bot Trading Not a New Problem

The above tweet from August 2020 reveals that bot trading has been an ongoing problem. However, this has not gone unnoticed by the folks at Nifty Gateway

After the historically successful drop by Beeple, which was great for everyone except the many collectors who missed out, cofounder Duncan Cock Foster posted about Nifty Gateway’s efforts to address such concerns as of late November.

For example:

We long ago added a WAF…We saw some suspicious activity that helped us close holes. We also added basic rate limiting on the purchase endpoint. When that wasn’t enough, we added a feature on the backend that mandated only one nifty per user account.

He also announced plans for a cheating-related bug bounty program, “doing fewer release formats that incentive instant reselling,” and a long-term approach designed to incentivize collectors over flippers.

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Announcing Community Guidelines

In Nifty Gateway comments and blog posts related to the issue, the topic of breaking the rules is raised. In what appears to be an ongoing effort to keep users in the loop while aligning their stated guidelines with their attempts to address concerns, this month Nifty Gateway announced the introduction of Community Guidelines with a user discussion period which has been extended.

These guidelines are designed to go beyond their Terms of Use by focusing on the process of creating them, including comments from users in the process of finalizing, and speaking in terms of shared behavior necessary to build a truly positive collecting community.

For example:

You should play fairly, always

Nifty Gateway drops are competitive. Anything that gives you an unfair advantage goes against the spirit of the platform.

Using a bot or automated purchasing program goes against the spirit of the platform.

It also defines a clear process for notifying users of violations before freezing accounts. But perhaps most importantly, the Community Guidelines make it clear that “Nifty Gateway is not a platform for short term speculation or flipping” and one should expect ongoing action to create a platform for long-term collectors.

Though it’s not difficult to find points of attack with which to condemn Nifty Gateway, when one considers the open communication in this Twitter thread and the process for developing Community Guidelines, one has to see positive development in motion.

Regardless of one’s response to this initiative, it does appear that Nifty Gateway is taking their success and the needs of users into account and attempting to address their concerns. This is a good thing for everyone involved with Nifty Gateway except for those who are winning at bot commerce and quick flips!

Crypto Art Press