OpenSea Founder Comes Under Fire for Insider NFT Sales

OpenSea has officially confirmed that an executive has benefited from internal knowledge when purchasing NFTs.

By
Dardania Havolli
on
September 16, 2021
Category:
Blockchain News

OpenSea Executive Lost at Sea

OpenSea has been left red-faced after formed Head of Product, Nate Chastain, was found and confirmed to have purchased Non-Fungible Tokens (NFTs) ahead of spotlighting and selling shortly after for a profit. 

The hugely popular NFT marketplace confirmed Chastain’s actions through an official blog post published on the 15th of September. They looked to distance their general practice and policies from what had taken place. 

“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 explained. “This is incredibly disappointing. We want to be clear that this behavior does not represent our values as a team. We are taking this very seriously and are conducting an immediate and thorough review of this incident so that we have a full understanding of the facts and additional steps we need to take.”
Source

Transactional data on EtherScan helped Twitter users identify the discrepancy and raise relevant questions, as the transparent nature of crypto was highlighted. The fallout from the event is still be accumulated, and some have indicated it could become a catalyst for regulation.  

Who is Nick Chastain?

The former Head of Product at OpenSea has had an intrinsic role in the general success the organization has enjoyed thus far. This latest blunder will be particularly disappointing after the incredible work carried out in reaching the heights OpenSea has done. 

He is also the owner of CryptoPunk #3501, which he’d initially gotten his hands on for 26.98 ETH months ago, as confirmed by available OpenSea data. His Ethereum address was easily distinguishable with this available data, and hawk-eyed users made no mistake in identifying his transaction history.  

It has been confirmed that Chastain has resigned as of September 16. Frank Chaparro, a reporter for the Block, put an addendum to his own reporting about the event on Twitter that indicated many still had positive words for Chastain despite his parting. 

Despite what might mean that some at OpenSea could remain simpatico with Chastain, his overall reputation has faced a major whipping on social media

About OpenSea

OpenSea is the biggest and most popular NFT marketplace where users with a crypto wallet can buy and sell the most popular digital assets known to date. Anything from high-brow photographs and portraits of mutant apes to tokenized collectibles and electronic music is on offer. The marketplace has enjoyed huge media attention due to its dominant role in the NFT space and receiving recognized backing from industry leaders such as Dapper, Coinbase, and QuantStamp.

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Dardania Havolli

Dardania is an experienced researcher, editor and writer who is currently completing his PhD in Creative Writing. He is passionate about blockchain technology and the impact it will go on to have on our lives. He holds bags mostly in BNB, SOL and IOTX.

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