Mark Cuban-backed OpenSea says it's found evidence of insider trading on its NFT platform
OpenSeasaid it found evidence of insider NFTtrading on its platform and was looking into the matter.
- The company said it has now put policies in place to prevent further
- It said an employee was responsible but did not name them.
OpenSea, the non-fungible token platform backed by billionaire Mark Cuban, said it has uncovered evidence of insider trading by an employee in a statement on Wednesday.
An employee had purchased some digital tokens knowing that these were due to be featured on the OpenSea front page before this information was made public, the statement said.
Non-fungible tokens, or NFTs, are unique digital collectible items that reside on a blockchain that can be bought and sold on platforms such as OpenSea and have grown in popularity this year.
Celebrities, sports players and even fashion houses have embraced them and OpenSea is the largest online marketplace for these
"For a new, more open internet that empowers creators and collectors, we will need to bake in trust and transparency into all that we do. We're committed to doing the right thing for our users and earning back the trust of the community we serve," OpenSea said.
The platform did not name which employee was responsible for the insider trading, but one Twitter user named OpenSea employee Nate Chastain, who is head of product, as being at the center of the transactions. Chastain was not immediately available to comment when contacted by Insider.
"Hey @opensea why does it appear @natechastain has a few secret wallets that appears to buy your front page drops before they are listed, then sells them shortly after the front-page-hype spike for profits, and then tumbles them back to his main wallet with his punk on it?" @ZuwuTV's tweet said.
Representatives from OpenSea were not immediately available to comment when contacted by Insider.
- No crypto ban in India — SEBI will reportedly be pulled in to regulate the sector
- I tried a calendar that's meant to boost productivity by mapping out the number of weeks you have left to live — here's how it went
- I wore the same outfit for a week, as part of a productivity hack promoted by Steve Jobs — but it didn't really work. After speaking to psychologists, I'm not surprised.
- 44 key areas, a national framework, and a multi-institutional approach — Here's what you need to know about India's new National Blockchain Strategy
- India's biggest test wins since 2018 — Virat Kohli was not the captain in two of those 14 matches
- Samsung launches Galaxy A03 Core with 6.5-inch display, 5,000 mAh battery, starting at ₹7,999
- Nifty 50 goes below 17,000-mark on rising Omicron cases, fear of lockdown
- Indian government is reportedly looking to regulate work from home with a comprehensive framework