Buyers of Coachella NFT lifetime memberships are unable to access their tokens due to the ongoing collapse of the FTX cryptocurrency exchange.
In February of this year, Coachella auctioned off 10 lifetime festival passes. They were dubbed “Coachella Keys” in the form of NFTs and were part of a partnership with the FTX cryptocurrency exchange. The lifetime passes were valued at a total of US$1.5 million (£1.2 million) and were included in the festival’s wider range of NFT products called “Coachella Collectibles”.
Now their status is in limbo due to the collapse of FTX after the exchange filed for bankruptcy earlier this month. The owners of the digital hub — the world’s second largest cryptocurrency exchange — cited a “serious liquidity crisis” as the reason for its collapse, leaving thousands of users who held NFTs on the platform unable to access their tokens.
According to billboard, many of Coachella’s lifetime passes are apparently stuck on the now-defunct exchange. A spokesperson for Coachella said the platform “seems to be offline at the moment” while one collector said he was only able to add a Coachella key to his wallet because he removed it from FTX days before the crash. Any buyers who have left passes stored on the exchange will no longer be able to access them.
Talking about NFT failure in a statement for BillboardCoachella’s head of innovation, Sam Schoonover, said: “We are actively working on solutions and we are confident that we can protect the interests of Coachella NFT holders.”
Meanwhile, on the festival’s discord server, one of the festival staff wrote: “Like many of you, we have been following the development of this news on the Internet for the past few days and are shocked by the result.”
They continued, “Currently, we do not have any lines of communication with the FTX team. We have put together an in-house team to develop solutions based on the tools we have access to. Our priority is to remove Coachella NFT from FTX.”
In announcements announcing “Coachella Collectibles” ahead of the festival, which this year took place April 15-17 and April 22-24, organizers said the assortment gave collectors “the opportunity to purchase lifetime festival passes, a unique experience on the spot.” , physical items, and digital collectibles.”
Coachella was one of many music events this year that incorporated the NFT experience into their festivals, such as Tomorrowland, EXIT and Ozzfest have also used the format to varying degrees.
Billie Eilish, Harry Styles, Flume, Megan Thee Stallion, Disclosure, 21 Savage and Phoebe Bridgers were among those who appeared at Coachella this year, which was called “cause for celebration” in a four-star review NME. In June, Frank Ocean was confirmed as the headliner for next year’s edition, with dates for his traditional two-week performances set for April.