Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Storm on OpenSea After Admitting Employee NFT 'Insider Trading'

Storm on OpenSea After Admitting Employee NFT 'Insider Trading'

OpenSea, leading peer-to-peer NFTs and collectibles marketplace is under fire after admitting insider trading. An employee abused their position to front-run the purchase of NFTs before they were promoted on the website’s homepage.

OpenSea users have not been hiding their reaction, accusing the platform of ‘allowing’ insider trading.

However, as there is no specific NFTs legislation on such practices, some would say OpenSea, and the employee have done nothing illegal.

But at the same time, there’s no question that the practice is highly immoral.

Twitter Users Uncover ‘Insider Trading’ of NFTs On OpenSea

Things started to unveil on Tuesday when a Twitter user posted peculiarities with the buying habits of OpenSea’s Head of Product, Nate Chastain.

“Hey OpenSea why does it appear Nate Chastain has a few secret wallets that appears to buy your front page drops before they are listed, then sells them shortly after the front-page-hype spike for profits, and then tumbles them back to his main wallet with his punk on it?”

According to the Twitter user Zuwu, it seemed as Chastain was buying NFTs before they were listed on the front page. Following the front page listing, demand spiked pushing the price higher, resulting in an inflated sale and the funds going to his wallet.

The Twitter user did not make any allegations on the number of times he noted this. Also he didn’t comment on how much profit Chastain has gained from the activity.

Zuwu’s investigation was extensive, including wallet analysis, use of the Wayback machine, and following trails from wallet to wallet. He also encouraged others to do the same to pick up on any points he may have missed.

One such line of inquiry showed the transaction details of a 7.14 ETH ($25,659) transfer supposedly going to a wallet that Chastain controls.

OpenSea’s Response

OpenSea responded to the allegations with a blog post written by CEO Devin Finzer, admitting the accusations true. OpenSea was quick to point out that such practices do not reflect their values.

“This is incredibly disappointing. We want to be clear that this behavior does not represent our values as a team.”

The post added that they had opened a “third-party review” to establish exactly what happened, hoping to gather a better understanding of the situation and circumstances.

Following the incident, OpenSea has already brought in additional staff policies to prevent the same happening in the future. As part of the new policies, staff members are not allowed to buy and sell NFTs while they are featured or being promoted. Also the use of confidential information to trade NFTs across is banned on all platforms, not just on OpenSea.

Finzer ended the post, saying the firm is committed to winning back the trust of users.

Source: Storm on OpenSea After Admitting Employee NFT 'Insider Trading' – Fintechs.fi

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
×