Largest NFT marketplace admits the fix was in, surprising no one
When it comes to ripping off investors, decentralized technology still hasn't managed to disrupt the tried and true methods pioneered on Wall Street.
OpenSea, the self-described "largest" non-fungible token marketplace, admitted Wednesday that an employee had been secretly buying NFTs in advance of their listing on the site's front page.
Using this non-public information, the employee was able to swoop up NFTs before their prices skyrocketed, and presumably make a hefty profit flipping them at a later date.
"OpenSea team members are prohibited from using confidential information to purchase or sell any NFTs, whether available on the OpenSea platform or not," the company explained.
We reached out to OpenSea in an attempt to determine which employee used confidential information to game its system, and whether or not they are still employed at OpenSea.
We also asked how many NFTs the employee flipped in this manner and how much profit they made doing so.
Meanwhile, the NFT community has pointed its collective finger at Nate Chastain, OpenSea's head of product.
We reached out to Chastain over Twitter direct message to ask him about the allegations, but received no immediate response.
OpenSea is a vital piece of the multi-billion dollar NFT market, giving investors and collectors a forum to buy and sell the digital tokens.
Noted NFT projects, like CryptoPunks, have seen sales as high as $7.5 million.
And in March of 2021, the Commodity Futures Trading Commission reported that an early Coinbase employee had artificially driven up interest in the cryptocurrency Litecoin.
It seems that even in the complex modern world of cryptocurrency and NFTs, the old tricks still work best.