Lessons I Learned from the Collapse of NFT Marketplace “OurSong”

The failure of “OurSong,” an NFT marketplace, was a challenging experience for me but also a valuable learning opportunity. Through this, I gained insights into the risks and pitfalls of the NFT space. Here are three key lessons I personally took away from this collapse.

1. High Gas Fees Are Unsustainable

Ethereum (ETH) is incredibly popular and has a vast reach, but its high gas fees can be a major obstacle. When OurSong collapsed, I was unable to move my NFTs to external wallets because the gas costs were too high, leaving me stranded. This experience made it painfully clear that platforms relying on blockchains with high transaction fees are not sustainable for users like me.

Key Takeaways:

• High gas fees restrict mobility and access to assets during critical moments.
• Sustainable platforms must prioritize low-cost blockchain solutions.

2. Popular Blockchains Are Essential

In the beginning, OurSong allowed me to mint NFTs on various emerging blockchains like ThunderCore and Binance Smart Chain. However, these chains lacked user adoption and quickly became irrelevant. Ultimately, Ethereum and Polygon emerged as the dominant platforms, proving that blockchains with a large user base are crucial for long-term success. This taught me that using popular blockchains is crucial for stability and growth.

Key Takeaways:

• Emerging blockchains may seem promising but often fail without widespread adoption.
• Established chains like ETH and Polygon provide better continuity and usability for users.

3. Centralized Asset Management Is Risky

When I minted NFTs on OurSong, they weren’t directly sent to my wallet. Instead, the platform held them until I manually withdrew them, which was already concerning. However, an even bigger issue arose: the NFTs were created under the platform’s name. This meant that if I chose to withdraw and resell these NFTs on another marketplace, the royalties would continue to go to OurSong instead of me as the creator.

This centralized approach posed significant risks in multiple ways:

1. If the platform failed (as it did), I lost access to my assets entirely unless I manually withdrew them and paid high gas fees.
2. Even after withdrawing my NFTs, I had no control over royalties because they were tied to OurSong’s smart contracts.

This experience taught me that decentralized systems are far superior. Platforms where NFTs are minted directly into personal wallets and royalties are embedded into smart contracts controlled by the creator offer far greater security and autonomy.

Key Takeaways:

• Centralized models put users at risk of losing their assets if the platform fails.
• Royalties tied to centralized platforms undermine creators’ control over their work.
• Decentralized systems that give users full control over their NFTs from the start are more secure and fair.

Conclusion

The collapse of OurSong taught me three critical lessons:

1. Low-cost transaction environments: High gas fees can leave users stranded.
2. The importance of popular blockchains: A strong user base ensures blockchain viability.
3. Decentralized asset management: Users need direct control over their NFTs and royalties for security and fairness.

These lessons have reshaped how I approach the NFT space and will guide my decisions moving forward to avoid similar pitfalls in the future. By prioritizing decentralization, low-cost solutions, and established ecosystems, I hope to navigate this space more safely and effectively going forward.