Yuga Labs, creator of Bored Ape Yacht Club, or BAYC, sparked a new collaboration with blockchain publisher Animoca Brands on Twitter Thursday. The catch is that no details about the project have been released yet, and users who signed up for it through the Know Your Customer or KYC verification process have expressed their concerns on social media.
BAYC has simply tweeted a link to a website where interested fans can search in hopes of agreeing to take part in what’s being prepared. To apply, users must connect to an Ethereum wallet, provide a copy of their license, passport or other form of identification, as well as prove their home address, and take a photo with the camera of the device they are registering on.
Both BAYC and Animoca Brands clarified on Twitter that they are not aiming for a “play to earn” game with the NFT Bored Ape we announced in December. The only other information shown is that, according to BAYC, “it has accumulated over the past seven months.” It is reported that Animoca Brands will unveil “Phase One”.
Members of the crypto community are being cautious about agreeing to KYC requirements without knowing exactly what they are getting into. The user who posted the message @cr0ssETH tweeted: “Developers, if the IRS take you hostage, wink twice,” indicating that all personal information may fall into the hands of third parties.
In addition to privacy related to KYC, the terms and conditions document has been criticized for persuading users to agree to “unrestricted” use of “all or part of your User Content”.
Another user @maz_nf warned that cryptocurrency will soon become a “government regulated business,” acknowledging the imperative that the NFT community will follow rules and laws in order to truly go mainstream.
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These views have sparked a debate about whether NFTs should be regulated and whether KYC should be incorporated into NFT trading platforms. Recently, OpenSea has been subjected to phishing and hacking attacks which have made NFT holders very vulnerable. In December 2021, art gallery owner Bored Apes stole $2.2 million from his hot wallet.