OpenSea refunds $1.8M to defrauded users and warns 80% of NFTs on the market are fake

Random sale of expensive NFTs

The largest NFT marketplace in the sector, OpenSea, has refunded about $1.8 million (750 ETH for 130 wallets) to users who suffered significant losses as a result of a platform mechanism failure that caused expensive NFTs to be accidentally sold at very low prices.

Last week, some popular NFTs such as those from the Bored Ape Yacht Club, Mutant Ape Yacht Club, Cyberkongz and Cool Cats collections were purchased at extremely discounted prices without the permission or knowledge of sellers. The NFTs in question were then resold at much higher prices.

For example, one user noticed that his “monkey” was sold for 0.77 ETH, while the current minimum price of BAYC NFT is 116.9 ETH.

The problem was treated as an “exploit” or “bug” and OpenSea implemented several solutions:

  1. The site changed the duration of the placement of goods by default from 6 months to 1 month.
    A toolbar is built into the user profile, where the user can see the entire list of products and cancel those that are no longer relevant.
  2. Created an alert when a user transfers NFT from their wallet, which is associated with an active list of goods.
  3. OpenSea has also shown that the majority of NFTs released for free on the platform are spam and/or plagiarism.

OpenSea allows creators to mint NFTs with no fees, leaving the buyer with gas fees instead. However, the platform has since noted that most NFTs minted in this way are spam. The company tweeted:

“Every decision we make, we make with our authors in mind. Initially, we created a so-called online store for everyone to make it easy for authors to join the space.

However, we’ve seen an exponential increase in the abuse of this feature lately. Over 80% of the items created with this tool were plagiarism, fake collections, and spam.”

Even with such serious problems and scams, the NFT boom shows no signs of fading – strong sales and great celebrity interest in the market. A few days ago, Justin Bieber bought Bored Ape NFT for 500 ETH (about $1.29 million) on OpenSea.

Leave a Comment