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NFT Insider Trading Is A Business

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One would hope that NFT insider trading is not a thing, but apparently it is.

OpenSea, online cryptocurrency market which was dubbed “eBay NFT. ”Admitted that one of its executives bought and sold digital collectibles using inside information from their website.

Of the forums that allow you to buy and sell said crypto art, OpenSea is one of the best known, hosting billions of dollars in non-fungible transactions. on their platform any month. A company that recently raised tens of millions of dollars to expand its platform, regularly includes certain collections and creators on their home page, allowing visitors to view and buy them.

However, platform product head Nate Chastain apparently invested in many of these collectibles prior to their public release.

Chastain’s activity was initially commented on by anonymous Twitter users on Monday. One particular user, @ZuwuTV, claimed that the artist used several “secret” crypto wallets to purchase NFTs from collections and artists prior to their release. Zuu said that following the premiere of the NFTs and the rise in prices for them, Chastain will sell them to make a profit:

Chinese cryptocurrency news platform 8BTC also claims to have analyzed wallet activity allegedly related to Chastain and reported that he received the equivalent of about $ 67,000 in Ether (ETH).

After a brief online sensation, OpenSea responded to user complaints. with blog post, published on Wednesday, promised changes. The post does not openly identify Chastain as the person involved in the transactions. Instead, he says:

“Yesterday we learned that one of our employees bought products that they knew should have been displayed on our front page before they appeared there publicly. This is incredibly insulting. We want to make it clear that this behavior does not reflect our collective values. We take this very seriously and are conducting an immediate and thorough analysis of this incident in order to have a full understanding of the facts and additional steps that we need to take. “

The company also said it has introduced new rules prohibiting members of the OpenSea team from buying or selling certain NFT products while the company is promoting them, or “using confidential information” to buy and sell them.

In my humble opinion, NFT is already such an exorbitant waste of time and money (often ridiculed like digital Beanie Babies for hapless rich people) that such a development does not seem so surprising. Relatively unregulated sphere Cryptocurrencies ensure that behavior that would be illegal in other industries in the NFT country will be just a shitty, albeit legal, cost of doing business.

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