OpenSea struggles to stem NFT fraud

As the main platform for buying and selling NFTs, OpeanSea must manage the drifts of NFTs and the situation is not simple. She reveals that 80% of the NFTs created for free via her site are fake, plagiarized or spam.

At the beginning of the year, OpenSea announced a major fundraiser. The platform, now valued at more than $13 billion, is riding on the success of NFTs and boasting more than a million users. However, all is not rosy in the business world, which has also been facing a lot of criticism for several months. At the start of the school year, OpenSea had been splashed by an insider trading scandal which led to the resignation of one of its managers. The latter, Nate Chastain, had indeed used information he had in advance to carry out certain operations and earn money. Blockchain technology has brought this practice to light, embarrassing the sector giant.

More recently, the platform has attempted to introduce a limit on the number of NFTs that can be created by a user. The free tool was supposed to be limited to 5 NFT collections with 50 non-fungible tokens per collection, but the measure didn’t last long. Until now, there were no limitations at the creation level and OpenSea did not communicate on this change. The criticisms of the community were not long in coming and pushed OpenSea to backtrack, but the firm still wanted to provide some clarifications. She explains that this feature was intended to fight against certain abuses.

More than 80% of NFTs created for free on OpenSea are scams

Indeed, the company wanted to make the process very accessible to allow everyone to be interested in NFTs. A laudable intention that has not escaped some unscrupulous Internet users. On Twitter, those responsible for the platform confirm that many scams are circulating on the site. “Over 80% of the articles created with this tool [gratuit] were plagiarized works, fake collections and spam”, indicated OpenSea. A significant figure which testifies to the difficulties of the platform to act on a market in full explosion, which is not the subject of any specific regulation.

This lack of communication, when putting a limit on the number of free NFTs that can be created, pushed the company to be more transparent. She Explain not to have taken this decision lightly and that she should have shared it with her community before implementing it. From now on, OpenSea indicates working “on a number of solutions” to prevent abuse and the site assures that it will communicate more with users before implementing them.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *