Concerns On OpenSea
The “giveaway” feature on the NFT marketplace OpenSea is causing confusion about mislabeled transactions. This is something that can be exploited by potential NFT traders. NFTs can now be sent directly to any wallet during the purchase process on OpenSea. This means that investors can buy an NFT with Ethereum from one wallet, but deliver the NFT to another wallet in a single transaction. And on some third-party wallet trackers the new feature launched on Friday is making it look like the gift recipient purchased the NFT for themselves.
According to a Twitter post by Metaverse HQ founder “JakeandBake”, the feature is allegedly “exploited” to make it look like celebrities and influencers like Gary Vaynerchuk are already buying NFTs from various collections.
While this is not a concern for casual NFT traders, it may lead to more serious traders who follow famous and influential buying activities misled into purchasing certain collectibles. Some NFT traders buy and sell assets and copy them according to what “smart money” traders do. This is especially true when someone like Gary Vaynerchuk invests in a collection.
“Don’t buy based on me,” he emphasized.
Ugh – first pls -no one ever buy anything f just cause I do, I buy what I like and 99.99% for long term hodl while for some flipping is their intent .. #2 I hope we can get this slighted addressed so people don’t get fooled – that said, pls for the 1000 time don’t buy based on meGary Vaynerchuk (@garyvee) July 31, 2022
An OpenSea representative acknowledged the issue in an email to Decrypt yesterday, but stressed that the issue was “not abuse” and “the result of misinterpretation of data”.
Thanks to the community for flagging this, especially @jakeandbakeNFT @brawlers42 & @GrapeDutch619.
We could have done a better job giving 3rd party apps & developers a heads up, as this requires a tweak to the way they display transaction data. We’re doing this work now.OpenSea (@opensea) August 1, 2022
OpenSea Lays Off 20% of Its Staff to Prepare for ‘Prolonged Downturn
This isn’t the first time OpenSea’s API has raised concerns. In January, a UI bug allowed some opportunistic buyers to snatch old list prices for Bored Ape Yacht Club NFTs, which are not clearly displayed on the site.