Opensea changes
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OpenSea, a popular digital platform for buying and selling digital compounds, has launched an internal study after admitting that one of its top executives was using internal information to purchase products before being marketed.
The site, which sells NFTs, or digital tokens that represent graphics, He confirmed Wednesday that the employee “purchased items that he or she knew were required to display on our front page before they were made public”.
The cost of the collection often jumped when it was posted on the first page of the platform for demanding attention from users.
This revelation came after a user on Twitter wrote Nate Chastain, head of marketing OpenSea, appeared to be selling NFTs “shortly after earning a profit” before sending the money to his big digital wallet.
The user, ZuwuTV, mentioned what is going on openly on the ethereum blockchain, an unaltered book that supports the establishment of multiple NFTs, and shared views on their findings.
Some Twitter users likened the event to a sell or sell market in a financial market, a practice – which is illegal in most markets – using what people don’t know to get ads.
These rules do not apply to the fixed market for digital tokens, even by regulators worldwide looking closely on their legal enforcement charges.
The issue comes at a time when OpenSea has become one of the main tools noise growth of NFT, and artists, fashion houses and even sports teams are rushing to enter the market as suppliers. Over the past month, the market has been led more than $ 3.8bn in NFT sales on its platform, according to research from DappRadar, and other artefacts that sold millions of dollars.
But the war could also lead to negative consequences in the freewheeling sector with limited economic security, some experts have warned.
OpenSea Wednesday said the incident was “disappointing”. It added that it is also a reflection of what has happened so quickly that it can “better understand the facts and the mechanisms for action” to take place.
Chastain could not be reached immediately for comment.
OpenSea also said that, as a result of these developments, it introduced early restrictions on employees buying or selling digital components before displaying or promoting them on the platform and using secrets to buy or sell any NFTs “whether available on the OpenSea platform or not”.
This experience illustrates how the immutability of blockchains such as ethereum means that it is possible for anyone with technical expertise to see unethical practices.
In July, OpenSea raised $ 100m in a revenue stream led by renowned company Andreessen Horowitz, grossing $ 1.5bn.
Additional reports of Philip Stafford in London