Top NFT platform, OpenSea, has seized bored ape NFTs valued at about $2.3m following reports of theft regarding the NFTs. All bored ape NFTs on OpenSea now have the notice sign “reported for suspicious activity; transactions no longer allowed.”
Some Details Regarding The Theft
The report states that there is no explanation for the disappearance of at least 16 NFTs. Todd Kramer (who owns the stolen NFTs) lamented that it is the first time he would feel that worse in his life. But he hopes that a solution will be found quickly.
This theft incident shows that there is a need to take the security of NFTs more seriously as it seems that criminals are now also interested in stealing NFTs the same way hackers are interested in hacking DeFi platforms. This incident marks the first time a massive collection of NFTs will be stolen.
However, many crypto enthusiasts are quick to criticize OpenSea for its handling of the situation, stressing that its decision to suspend trading on BAYC NFTs shows that the platform is run in a centralized manner. They also claim that OpenSea should be blamed for the security breach and not just freeze transactions on BAYC NFTs.
OpenSea is one of the leading NFT marketplaces, with a massive volume of NFT transactions taking place on the platform daily among hundreds of thousands of users. This theft incident will put question marks regarding the security of other NFTs on the OpenSea marketplace. Sadly, OpenSea has yet to update or issue any official statement regarding the issue.
NFT Plagiarism: Is Opensea Right?
OpenSea has also come under criticism recently for banning PAYC (phunky ape yacht club), an NFT series with also similar name and some identical NFT series as the popular BAYC (bored ape yacht club). The plagiarism of NFTs came under the spotlight within the NFT ecosystem when OpenSea banned the PAYC NFT series.
PAYC and BAYC. Source: nftrade.com
While some applauded the platform for its decision, others derided them as not being decentralized enough. They claim that a genuine decentralized platform won’t ban competing NFT series. The PAYC ecosystem is also a fast-growing one. Hence, it is likely that more updates will still come up regarding this story. Nevertheless, OpenSean and other NFT platforms must ensure that their platforms are fully theft-proof as that’s the best way they can sustain the fast growth of the NFT sector.
Rising Number Of NFT Marketplaces
The digital collectibles (NFT) industry has witnessed unprecedented growth since the beginning of this year. This year alone, investors and entrepreneurs have made a combined $15b in sales volume. A nonfungible.com data disclosed that NFT sales alone in the last seven days are estimated to be nearly $320m.
The fast growth of the NFT industry has also caused a rise in the number of NFT marketplaces. Asides from the well-known ones, especially OpenSea, other NFT marketplaces are springing up. Earlier in the week, Visual China Group (a China-based stock photo provider) launched its NFT platform (Yuan Shijue) or “meta-visual” in loose English.