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OpenSea Reimburses $1.8 Million to Scammed Users, Warns That 80% of NFTs on the Marketplace Are Fraudulent -Breaking

by Mike Robinson

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OpenSea Reimburses $1.8M to Fraudulent Users.

The largest NFT marketplace in the sector, OpenSea, has reimbursed around $1.8 million (750 ETH for 130 wallets) to users who experienced significant losses as a result of the platform’s broken mechanism causing the accidental sales of expensive NFTs at very low prices.

Last week, some popular NFTs, such as from the Bored Ape Yacht Club, Mutant Ape Yacht Club, Cyberkongz, and Cool Cats collections, were purchased for extremely reduced prices without the sellers’ permission or knowledge. The NFTs involved were then resold at much greater prices.

A user pointed out that his ape sold at 0.77ETH while the floor price for the BAYC NFTs was 116.9ETH.

The issue was discussed as an ‘exploit’ or ‘bug,’ and OpenSea implemented a few solutions:

1. Changed the default listing duration on our site from 6 months to 1 month to limit the number of listings that remain active long after they’re relevant.

2. A dashboard was built into the profile. Users can view all their listings, cancel them, and create new ones.

3. An alert was created to notify users when an NFT is transferred from their wallet. It should be flagged if the NFT has an active listing. Users can then cancel this listing after transferring the item.

OpenSea found that the majority of NFTs generated on its platform for no cost are either plagiarism or spam. OpenSea lets creators mint NFTs for free, but the buyers must pay the gasoline fee. The platform later noted that almost all NFTs created in this manner are spam. Twitter:

We make every decision with creators in our minds. Our original shared storefront contract was created to allow creators to easily join the space.

But, recent misuse has increased exponentially. Over 80% of the items created with this tool were plagiarized works, fake collections, and spam.”

Flipside

  • Despite the many scams and serious issues that have occurred, the NFT boom is not slowing down. There are high numbers of sales and celebrity interest. Justin Bieber was just a few days back. BuyOpenSea: Bored Ape NFT 500ETH for $1.29 Million

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