Market

This OpenSea policy will not prevent hackers, only harm users

What do you do if you realize that the item you just bought could be stolen? Even more, who gets punished for theft? These questions may have simple answers in our world, but when it comes to NFT, things are rarely that simple.

OpenSea policies

In a clip from the Bankless podcast, co-hosts Ryan Sean Adams and David Hoffman discuss an incident where OpenSea was made aware of a stolen NFT and allegedly froze it after it was sold to another user. They criticized the move and Hoffman notice:

“Stolen NFT damage. Buyer NFT Damage. Hackers/Miners get this free 1.5 ETH.

Meanwhile, Adams commented:

“In general it seems like a bad precedent because what you can do is attract more thieves.”

So what does OpenSea do when it detects signs of art theft? Follow site:

“If OpenSea receives a credible report or learns that an item has been stolen, we block the item so it cannot be bought, sold or transferred through OpenSea.”

But again, users might feel that this penalizes buyers who are unaware that the NFT has been stolen. In fact, digital art theft has become a major problem to date, leading many creators and KOLs to criticize OpenSea for not doing enough to protect artists.

But despite the harsh criticism, this NFT market still posted plenty of impressive stats for the month. According to Dune Analytics, OpenSea’s monthly ETH volume is nearly $3.5 billion at the time of writing. This is slightly higher than OpenSea’s monthly volume for the whole of December.

The source: dune analysis

Emerging Impressive Competitors?

On the other hand, OpenSea now has a formidable opponent. Marketplace NFT LookRare is gaining traction in the industry after reportedly overtaking OpenSea in daily volume just days after its launch.

However, OpenSea’s daily user count is still much higher in the table. In addition, DappRadar guess i think LookRare’s impressive stats are down to the wash trade.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.