It should be noted that NFT tokens remain popular right now, despite the bear market. This is not surprising: in addition to its value for collectors, NFTs also offer broad prospects for token creators. A prime example of this is UFC fighter Francis Ngannou, who earned more from non-exchangeable tokens than he did for his fight. Read more about the story in a separate article.

How to hide NFT tokens

Buterin suggested that Merkle trees and zk-SNARK technology are more sophisticated methods for hiding the addresses of ERC-721 tokens. In doing so, the developer suggested his own solution to the problem. Vitalik recommended incorporating a method into smart contract wallets that would allow the sender to essentially disguise their address to third parties.

Here’s Vitalik’s rejoinder, in which he shares his perspective on what’s happening. The quote from the creator of Etherium is cited by Cointelegraph.

You could, for example, send NFT to vitalik.eth [Buterin’s domain name based on Etherium – editor’s note] without anyone but me being able to see who the new token owner is.

Accordingly, the idea is to mask the owners of the non-mutual tokens, which would clearly improve their privacy.

Top 10 most popular NFT collections

With this method, senders will need to include “enough ETH to pay the fee 5-50 times” through the transfer chain. Why Vitalik mentioned this exact number of times to pay transactions is unknown. However, Buterin added that “there may be a better universal solution that somehow leverages specialized search engines or blockchain creators.

Also, funds for commissions could be held through the Tornado Cash platform to obfuscate the transaction trail. There's a nuance to this, though: the day before, the US Treasury Department's Office of Foreign Assets Control (OFAC) recently blocked the platform for its use in money laundering.

According to Decrypt’s sources, NFT anonymity could come in handy for many celebrities right now, as consumer advocacy group Truth in Advertising (TINA) is demanding that details of the promotion of unique tokens by celebrities be disclosed in light of US Federal Trade Commission (FTC) regulation.

TINA representatives have already sent out demand letters to several celebrities, including Gwyneth Paltrow, Eva Longoria, Floyd Mayweather, Tom Brady, DJ Khaled, Snoop Dogg and Paris Hilton. As a reminder, all of them have previously purchased and/or promoted some popular NFT collections. These include token series like Bored Ape Yacht Club and World of Women.

Previously, Snoop Dogg even released a music video based on the Bored Ape Yacht Club collection with Eminem


This is not the first time that TINA has accused celebrities of bad publicity for various NFTs. In June, TINA's legal director Laura Smith sent letters to the agencies representing Justin Bieber and Reese Witherspoon, alleging that the celebs had engaged in deceptive marketing and support to promote the NFT collections InBetweeners and World of Women respectively.

And such an initiative seems logical. After all, if a celebrity is promoting something, they should talk about their own investment. And if the advertised NFT collection isn't among the tokens in your wallet, it's trivial advertising that should be reported. And if it does, then it could be characterized as self-promotion for financial gain, which also raises questions. But advertising in the cryptocurrency industry by Influencers really needs to be more transparent, because otherwise it will end up in a lawsuit, as happened the day before with Barstool Sports founder Dave Portnoy.


NFT-series Cryptopunks is one of the most popular collections of unique tokens


We think the concept of a discreet change of ownership of NFT is a really interesting one, as it will allow investors to not have to worry about attention to their identity and assets. However, no one would probably want to pay for that several times or dozens of times a transaction, because that would be quite expensive even now. In any case developers will be able to realize this idea if they are interested in it. So it remains here to keep an eye on the coin niche and the progress within it further.