OpenSea rolls out NFT app amid insider trading controversy

#Bitcoin #Blockchain #Cryptocurrency

OpenSea discovered evidence implicating its product head in an insider trading scam
OpenSea has prohibited company members from trading NFT's
The company has introduced app in both Apple and Google play store

Written By:Yash

Updated: September 16 2021 11:47:23 PM ET

OpenSea, a non-fungible token (NFT) marketplace based out of the United States, revealed on Wednesday that it has discovered evidence implicating its product head Nate Chastain in an insider trading scam. According to OpenSea, the firm is taking the situation extremely seriously. It published a lengthy blog pledging a third-party examination of the incident to restore customers’ trust in the platform.

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We’re conducting a thorough review of yesterday’s incident and are committed to doing the right thing for OpenSea users.

We have posted an official statement here: https://t.co/NWExSdThOf

— Devin Finzer (dfinzer.eth) (@dfinzer) September 15, 2021

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Over the last several months, OpenSea has become one of the most well-known and popular sites for creating NFTs from photos and other kinds of art. The announcement by OpenSea comes after a Twitter handle named @ZuwuTV sent a series of tweets earlier this week raising suspicions about the fraud.

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“Yesterday we learned that one of our employees purchased items that they knew were set to display on our front page before they appeared there publicly. This is incredibly disappointing. We are conducting an immediate and thorough third-party review of this incident,” OpenSea said in a blog post.

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As the first move in damage control, OpenSea has introduced two new regulations prohibiting company members from purchasing or selling NFTs that are shown or promoted on their page while preventing team members from utilizing sensitive data about NFTs for their own personal profit.

We have a strong responsibility to our community, and we take any breach of trust incredibly seriously.

We've taken additional steps to address this and are investing in policies that move the space towards greater transparency and openness.

Update: https://t.co/NWExSdThOf

— Devin Finzer (dfinzer.eth) (@dfinzer) September 16, 2021

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This insider trading incident has shaken OpenSea’s internal operations at a time when the company is introducing applications for its customers in both the Google Play and Apple App Store.

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The app launch follows a record-breaking month for the platform: in August, OpenSea’s website witnessed two million transactions, totaling $3.4 billion in trade volume and tripling engagement from July.

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According to Dune Analytics, daily trade activity has decreased considerably from its peak in late August thus far in September. Nonetheless, the app has the potential to capitalize on the company’s momentum by providing users with an easy method to monitor non-fungible token holdings, sales, and trading histories on mobile.