An OpenSea senior employee was caught doing inside trading of NFTs before being dropped on the platform and selling them at a profit. Shortly after, the project published a blog post admitting the wrongdoing.
Product Lead Had “Prior Knowledge” of NFTs Drops
Users on Twitter accused Nate Chastain, Head of Product at OpenSea, of using secret ETH burner wallets to buy NFTs before they were unloaded on the front page of OpenSea. What gave him away was making the mistake of sending the profits to his own public address. The transactions were first found by a user on Twitter who revealed that Chastain has been snapping up NFTs for a while.
Found a place to upload the files that has a 30day or 250 download limit! These 2 files were sent to me anonymously with sketchy wallet activity from people looking into it before me.https://t.co/fQQqt7sjdb— ZuwuTV.eth 👻🎃🦇 (@ZuwuTV) September 15, 2021
He made 19 ETH in total – around 66,911 USD, according to data collected by BlockBeats China:
According to OpenSea data, Chastain is the owner of CryptoPunk #3501 – purchased for 26.98 ether. This NFT revealed his Ethereum address to the community, allowing anyone to see Chastain’s transactions.
Hey @opensea why does it appear @natechastain has a few secret wallets that appears to buy your front page drops before they are listed, then sells them shortly after the front-page-hype spike for profits, and then tumbles them back to his main wallet with his punk on it?— ZuwuTV.eth 👻🎃🦇 (@ZuwuTV) September 14, 2021
OpenSea Confirms the Allegations
OpenSea confirmed the allegation in a blog post on Wednesday. “This is incredibly disappointing,” the post said. “We want to be clear that this behavior does not represent our values as a team.”
“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.” – the statement reads.
OpenSea has not disclosed the status of Chastain’s employment with the company. This is not the first time that the same person has been accused of insider trading, though. Chastain previously admitted on August 2 to buying in-demand artwork by a featured artist, receiving harsh criticism from the community.
OpenSea has been the leading NFT marketplace for collectors. In August, the platform recorded $1 billion in trading volume. Yet this event has opened criticism once again, many users calling out centralization and market manipulation – besides lack of transparency from NFT collectors in recent weeks.
As CryptoPotato reported, at least $100k in NFTs were lost due to a bug found in the marketplace. While the issue was patched, the affected users were still not able to get back their NFTs.
Reddit Working on NFT Platform
The Reddit message board is getting into the NFT market, a new job posting suggests
Online message board Reddit is preparing to develop a platform for non-fungible tokens, according to a new job posting.
The San Francisco-headquartered company is looking for a senior backend engineer who will be responsible for building services that will make it possible for “millions” of users to mint and trade NFTs.
The job description highlights the importance of NFTs, predicting that they are going to “rewrite” the way we think about goods. It highlights a slew of use cases that are linked to the new technology:
Beyond visual art, there are already NFTs for music, videos, articles, and even memes. Many believe that NFTs will become the standard for items in online games, as well as items in the eventual metaverse.
Five years of experience in backend development and the ability to design complex distributed systems are the key qualifications required for the position.
Reddit co-founder Alexis Ohanian is a big fan of Ethereum and NFTs. At the MET Fashion Gala, he even wore a CryptoPunk NFT that he purchased for his wife, Serena Williams.
Playboy Releases Ethereum-Based Rabbitars NFTs, Presale Begins in 2 Days
Playboy has created Ethereum-based Rabbitars NFTs as ERC-721 tokens. The project’s website describes Playboy Rabbitars as a “lagomorphic-themed civilization of unique and non-fungible rabbits.” There are 11,953 of them, inspired by Playboy iconography, heritage and lore.
The news was shared by Chinese crypto journalist and blogger Colin Wu. He posted a screenshot from the project’s website, featuring some of the Playboy Rabbitars.
Playboy launched Rabbitars NFT, which will be officially sold in two days, with a Mint price of 0.1953 ETH. https://t.co/HzCIf6W9nT pic.twitter.com/FaQRskQEQZ— Wu Blockchain (@WuBlockchain) October 22, 2021
The sale will begin in two days at a mint price of 0.1953 ETH ($803). The website explains that in order to become an owner of such an NFT, a user needs to set up a Metamask wallet. However, NFTs will be available for sale both for fiat and crypto.
Those who want to pay in ETH need to load up their wallet at least two days before the sale starts. Presale for ETH will begin on Oct. 24. The public sale for U.S. dollars will start on Oct. 26, and the next day, users will be able to buy Rabbitars for ETH.
It is possible to order 1-2 NFTs during the presale. At a public sale, one user is allowed to buy up to ten Rabbitars.
Mars Land NFTs Released on Ethereum, MARS4 Tokens Listed on Bittrex, Sushiswap
Here’s how land plot on Mars can be obtained in a new-gen manner through NFT marketplace
Shortly after the release of an eccentric NFT-focused metaverse, the Mars Land project sees its core native utility asset, MARS4, listed by Tier 1 centralized exchange Bittrex and leading DEX SushiSwap (SUSHI).
Here’s how NFT instruments allow crypto enthusiasts to purchase land on Mars
The Mars4 team behind Mars Land, a novel digital collectibles project, has modeled a 3D map of Mars’ terrain based on the latest NASA data. The total area of Mars’ terrain is divided into 99,888 tokenized plots.
Then, the NFTs associated with segments of Mars Land are available for sale as non-fungible tokens. Mars Land NFTs are minted on Ethereum (ETH) blockchain and can be utilized in various digital economic initiatives.
Namely, Mars NFTs can be locked for staking and utilized for liquidity mining; therefore, Mars Land NFTs evolved into a full-stack instrument of passive income for cryptocurrency enthusiasts with various levels of expertise.
Mars Land NFTs are released in batches; 10,000 tokens are listed per epoch. Starting from Epoch 1, 51% of the income generated is redistributed among current NFT holders. By mid-October, there are more than 50,000 NFTs in circulation.
MARS4 listed on CEXes and DEXes: Why is this crucial?
Mars Land adheres to a dual tokenomic design: its architecture includes NFTs and MARS4 dollars. In total, there are four billion MARS4 tokens in circulation.
MARS4 tokens are now available on Bittrex, a veteran centralized cryptocurrency trading ecosystem. Bittrex offers the widest range of assets amidst all CEXes working in the United States.
Also, MARS4 tokens can be purchased on leading Ethereum-based decentralized exchange, SushiSwap (SUSHI). On SushiSwap (SUSHI), MARS4 tokens can be staked as well.