NFT Insider Trading on OpenSea – The Need for a More Decentralized Platform

Allegations of internal NFT trading on the popular OpenSea have fueled discussions about the need for a decentralized token trading platform (NFT).

NFT insider trading on OpenSea

It all started with an anonymous Twitter thread claiming that the Head of Product at OpenSea, Nate Chastain, apparently had a secret wallet to buy market discounts before they were listed and then use them right after the ads spike on the front page for a profit, and then move them back to his main wallet with his crypto coins.

OpenSea confirmed that it learned yesterday that one of its employees had purchased items that it knew would appear on the front page before going public:

“We take this very seriously and are conducting an immediate and thorough review of this incident so that we fully understand the incident and the additional steps we need to take.”.

OpenSea added that it has also implemented several policies prohibiting its team members from trading in collections introduced or promoted by the company, among other things.

In any case, shortly after the Cryptoverse noticed this, discussions began about whether this was illegal or just plain unethical in the physical art world. There are many angry comments and even comparisons with Fiat.

NFT Insider Trading on OpenSea The need for a more decentralized platform

Compound Finance Co-Founder Robert Leshner said, “Whether or not the claims about NFT kit trading on OpenSea are true, the company needs to use this as a catalyst in building a decentralized platform.

Because “Central systems and their users tend to make people wrong”.

As to whether such platforms exist, Alex Gausman, founder of NFTX, tweeted that this is a decentralized market and that NFTX will move in that direction as they perfect the auto account features. “Treasury [tổ chức tự trị không được phân bổ] Ours have a fortune too [USD] 71 million. All managed 100% on-chain via Aragon. “

Gausman added: All votes need more than 80% consensus to pass.

Sino Global Capital’s Matthew Graham agrees, saying that if the rumors are true, Chastain should be fired and law enforcement agencies turned on, while Maya Zehavi, founding member of the Blockchain Industry Forum Israel, argues that this is the U.S. Securities and Exchange Commission ( SEC).

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