A claim about OpenSea, one of the largest NFT marketplaces, was confirmed by the platform and declared a “disappointment”. The event was that an executive quickly sold the collections he had bought by putting them on the platform’s homepage. A Reddit user posted the transaction details and documented the process. The manager is known to have earned 18,875 ETH.
Displayed purchased NFTs on homepage
Nate Chastain, the product manager of OpenSea, displayed the NFT tokens he had purchased on OpenSea’s homepage. Thus, it brought the works of art to more users and quickly disposed of it. Chastain, who uses a “burner wallet” to buy NFTs, was disclosed by a Reddit user before the NFTs he displayed on the homepage and the transactions were documented.
One of the NFTs in question, the “Spectrum Of A Ramenfication Theory” of the Dailydust Collection on OpenSea, was purchased by Chastain for 0.25 Ether (ETH) on Tuesday and sold for 1.5 ETH a few hours later. . Specifically, the sale was made after NFT was featured on the front page. A Twitter thread that surfaced on Tuesday claimed that Chastain had been selling front-page NFTs for some time now:
I found a place to upload files with a 30 day or 250 download limit! These 2 files were sent to me anonymously with sketchy wallet activity from people who searched before me.
Claimed to earn 18,875 ETH over 11 NFTs
Chinese crypto news outlet 8BTC News claims that the OpenSea executive has earned 18,875 ETH through insider trading over 11 NFTs. The transaction history confirming the allegations was revealed by 8BTC News:
How much #opensea product was obtained from insider trading. Data collected by our friend:
OpenSea: Incredibly disappointing
The OpenSea platform, which we referred to as , confirmed the allegations in a blog post published during the day and announced that they were taking the incident seriously:
Yesterday, we learned that one of our employees had purchased products they knew would be showcased on our front page before they were made public. This is incredibly disappointing. We want to make it clear that this behavior does not represent our values as a team. We take this very seriously and are reviewing this incident promptly and thoroughly to fully understand the facts and further steps we must take.
OpenSea, which sold $4 billion in NFTs in August alone, added that employees are prohibited from buying and selling collections on the platform. They are also prohibited from using confidential information about NFTs to profit from their sales. Meanwhile, the platform has not made a statement on Nate Chastain’s employment status so far.