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You are here: Home / Bitcoin Industry News / McDonald’s McRib NFT Project Links to Racial Slur Recorded On Blockchain

December 11, 2021

McDonald’s McRib NFT Project Links to Racial Slur Recorded On Blockchain

One of the problems with the recent phenomenon of food brands getting into NFTs is that food is actually quite different from NFTs.

If you’re a business that’s really good at, like, nailing the economics of mass-producing hamburger meat, there’s no guarantee you’re going to have the same success peddling tokens on a blockchain.

Take McDonald’s, the fast-food megachain that announced its first collection of NFTs last month in conjunction with the return of the McRib (essentially a soupy version of a pork sandwich). The McRib is available for a limited time each year, typically starting around October or November.

In this year’s press release, the company described its ten McRib NFTs as “digital versions of the fan favorite sandwich” – something to cherish during those long summer months when the physical product isn’t on sale.

i present to u the most important NFT. RT for a chance to win one of ten exclusive #McRibNFT

no purch. nec. 50 U.S./DC, 18+ only. winners need crypto wallet to receive NFT. rules: httpss://t.co/2QRhsPlpur pic.twitter.com/KYmWI67PhG

— McDonald’s (@McDonalds) November 1, 2021

The NFT drop was also a sweepstakes; McDonald’s has been reaching out to winners on Twitter in recent weeks.

But on Friday night, a trader with the handle @ok_0S noticed that an early transaction to what appeared to be the Ethereum address associated with the official McRib NFT collection contained a racial slur, inscribed directly on the Ethereum blockchain.

CoinDesk has found numerous connections between the transaction and the NFT collection, presenting a case study for why major brands would be well served to approach this technology with caution. Numerous attempts to reach McDonald’s for comment Friday evening were unsuccessful.

Digital trail

The digital trail appears to show that McDonald’s official Twitter account is directly linked to the Ethereum blockchain transaction containing the slur.

On Nov. 1, McDonald’s brand Twitter began promoting its McRib NFT contest with a link to the sweepstakes’ rules:

That rules page in turn links to McDonald’s verified Rarible account, which prominently features the 0x2ef743b24a915a5d6c489479865a4e98d191efac Ethereum address. This address is the creator of the McRib NFT contract.

The first of a total of 11 transactions associated with the address is a deposit of 0.000069 ETH. As a part of a transaction, Ethereum users can choose to add hexadecimal data. This data can be used to send messages, and can even be used to anonymously negotiate standoffs, as in the case of the $600 million Poly Network hack.

Read more: Poly Network Prepares for Hacker to Return Millions in Stolen Crypto

The deposit in question includes data which, when decoded, reads “ay yo n***a gibsme sum of dat mcrib.”

It is unclear if the author of this message was an employee or a contractor of McDonalds, but it is the first transaction sent to an address that would go on to mint the official McDonald’s NFTs, implying that the sender had foreknowledge of the project.

The sender’s address, which owns the Ethereum Name Service domain the-boss.eth, shows that they are a prolific NFT flipper, OpenSea user, and has used various DeFi protocols across 729 network transactions.

In addition to the link between the McDonalds verified Twitter account and the verified Rarible NFT account, CoinDesk found that one recipient of the NFTs associated with the address where the slur was posted, “BTCMike,” had been contacted by McDonalds to receive the NFT:

hey @BitcoinMiike i’m trying to DM u about the McRib NFT, help me out? Follow @McDonalds in next 48 hrs

— McDonald’s (@McDonalds) November 22, 2021

Who wants this?

Ultimately, the link between the transaction and the NFTs appears to be conclusive. Someone with knowledge of the account, likely an employee or contractor for McDonald’s, wrote and posted it prior to the creation of the NFTs, perhaps assuming it would never be found.

While other brands have experienced high-profile flubs with their early forays into NFTs, such as the Time Magazine drop which was exploited and saw the majority of the nearly 5,000 NFTs go to bots, this may be the biggest blunder yet.

Finding this message requires some degree of technical knowledge; McDonalds likely doesn’t have the internal expertise to realize that such an event would be permanently associated with the project.

Aside from brands cavalierly wading into the space to sometimes disastrous results, it also remains unclear who they’re taking the risks for, exactly.

Read More: Who Really Wants Corporate NFTs?

Many NFT efforts from major brands have failed to see significant traction. The McRib NFTs, for instance, have never been traded.

Nonetheless, major corporations continue to move into the NFT space with inadequate precautions, and insiders seem more than willing to make fools of them for doing so.

Author: Danny Nelson, Will Gottsegen, Andrew Thurman

Filed Under: Bitcoin Industry News

Expert Witness

Ty Sagalow head shotTy Sagalow's unique background in legal, underwriting, policy drafting and claims – and his designation as a “qualified insurance expert” by the United States District Court for the Southern District of California – offers attorneys an unparalleled resource in D&O, E&O and Cyber insurance coverage disputes. He was also named "Most Helpful Expert" in a recent $8.7M coverage decision.

Mr. Sagalow served as Chief Underwriting Officer and General Counsel for AIG Executive Liability (formerly National Union Fire Insurance Company of Pittsburgh, PA), the world’s largest carrier of Directors and Officers Liability and Professional Liability Insurance. As General Counsel, Mr. Sagalow personally wrote or led teams that wrote all the D&O policies and many of the professional liability policies that AIG produced between 1988 and 2000 – policies which continue to serve as the foundational wording for the D&O and professional liability policies in the market today. As AIG Executive Liability’s Chief Underwriting Officer, Mr. Sagalow was charged with all underwriting interpretations and decisions for AIG D&O/E&O policies. In 2009, Mr. Sagalow headed up the team that rewrote all D&O policies for Zurich North America.

Ty is a cum laude graduate of Georgetown University Law Center and holds a LLM from New York University School of Law.

Bitcoin Insurance

Combining his talents as a network security insurance expert and an insurance product development expert, Ty Sagalow is the leading expert on the unique risk and insurance needs of the bitcoin industry.

With the successful sale of BitSecure(tm), the first bitcoin theft insurance policy in February of 2015, he is the first to create a sustainable, robust insurance policy to cover the theft of bitcoins and other virtual currency backed by an A-Rated, global “top 10” Property and Casualty insurance company.

Company Profile

Innovation Insurance Group is an insurance consulting firm and insurance brokerage founded by 30-year insurance executive, Ty R. Sagalow, former Chief Underwriting Officer, General Counsel and Chief Innovation Officer at AIG, and former Chief Innovation Officer at Zurich, NA and Tower Group. IIG focuses on three core practice groups: product development, expert witness services (primarily in the Management and Professional Liability areas), and bitcoin industry brokerage services.

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