CloneX, a very successful project from the NFT mania golden era, is currently facing some controversial backlash. Instead, holders are just discovering broken links and feeling the frustrating silence of a rug pull from the creators. This predicament has fueled a passionate discussion regarding the accountability of highly lucrative ventures. Importantly, it raises deeper questions about what transparency truly looks like in the Web3 space.
CloneX was a partnership between RTFKT Studios and world-renowned Japanese artist Takashi Murakami. The avant-garde, stream-lined project proved to be a colossal hit, reaping a massive $81.3 million from initial sales. Lastly, it produced $37.8 million in royalties for the state from secondary markets. RTFKT Studios, the studio behind CloneX, developed in collaboration with Takashi Murakami, which would be subsequently acquired by Nike.
Yet, following an exciting streak of product releases, Twitter launches, and NFT giveaways, RTFKT Studios went dark. Takashi Murakami distanced himself from CloneX. The series of events culminated recently when project holders learned that the links to their web pages were now broken, signaling the death of their project.
The Rise and Fall
CloneX eventually became one of the most visible projects in the height of the NFT craze. The announcements of the RTFKT Studios and Takashi Murakami creative partnership created a huge amount of excitement, drawing in both collectors and investors. The project’s early success was inarguable, with huge primary sales and a booming secondary market.
Nike’s acquisition of RTFKT Studios accelerated long-term optimism around CloneX, implying cross-cultural potential and long-term integration with the Nike brand. The lack of communication between community members and RTFKT Studios + Takashi Murakami after the fact alarmed the community.
The broken links found by holders were a brutal real-world lesson in the transitory nature of digital assets. If a token on Ethereum is forever, the media it links to is probably not.
Community Backlash and Criticism
All of these broken links and the noncommittal nature of RTFKT Studios have set off a firestorm of criticism from the CloneX community. There are many holders who feel completely betrayed, that the project should provide them with more considering there have been hundreds of millions in revenue.
"Be CloneXMake $81.3M from NFT salesGet another $37.8M from royaltiesAirdrop sneaker couponsGo silentShut downDon’t pay for serversHolders left with a broken link and a dream" - Pix🔎 (@PixOnChain)
The state of affairs has led to an intense and passionate national debate. Now that NFT projects are making BMIs a reality, people are asking what these projects owe to their holders. We all like to think that our projects support the dignity of our assets. Beyond taxpayer obligations, they have a powerful moral obligation to keep serving their communities.
The CloneX controversy highlights the need for greater transparency and accountability within the Web3 landscape. Even with blockchain technology, which provides institutional features like immutability and decentralization, their methods do not ensure the long-term availability or accessibility of the media linked to.
Lessons Learned and the Future of Web3
CloneX should be a warning to NFT enthusiasts. It underscores the need for increased due diligence and more responsible project management. Collectors and investors should carefully evaluate the long-term viability of projects before investing, considering factors such as the team's commitment, the project's roadmap, and the sustainability of its infrastructure.
Projects should focus on improving transparency, building communication and trust, and ensuring the preservation of their long-term investments. This entails keeping working connections, continuing to provide support to the community, and making sure the underlying infrastructure of the project is sustainable.
What the CloneX saga shows us is that Web3 isn’t just about crypto tech. It’s about community. It’s about creating trust, developing a sense of community, and staying true to values of transparency and accountability.
