Is all press good press? Let’s hope that the insider trading scandal at OpenSea has not tarnished NFTs’ credibility — or at least whatever it has built for itself so far in spite of all the skepticism around it all.
OpenSea is the world’s largest marketplace where people can trade NFTs and other rare crypto tokens with each other. Oh and it’s no startup — it’s worth over $1.5b!
So what’s been going on behind the scenes? During an NFT sale not so long ago, an employee at OpenSea anonymously purchased artworks and then resold them at much higher prices (obvs, raking in a hefty profit). Oh and the employee was an OpenSea executive. Since, he’s handed in his resignation, which he soon after tendered on Twitter (TWTR).
why it matters
NFTs have been gaining in popularity in 2021 because of the opportunity — pieces of art keep reselling for higher and higher. But if some of the drivers of this growth are "fake," we can't help but wonder if it all really is just hype.