Forex in this article
• OpenSea users get hold of expensive NFTs far below market value
• BAYC, MAYC, Cool Cats and CyberKongz NFTs affected
• Users have transferred NFTs and not canceled old offers
On the NFT trading platform OpenSea, users were able to grab some high-trading NFTs well below the market price in January. Those affected, whose NFTs were bought at ridiculous prices and resold at high prices, reacted with outrage. OpenSea found a simple explanation of the processes and has reportedly implemented a number of improvements since the beginning of January to avoid this problem in the future.
Highly traded NFTS sells at cheap prices at OpenSea
On Monday, January 24, 2022, the NFT collector “TBALLER” tweeted that his precious Bored Ape # 9991 was purchased in the morning for 0.77 Ether, or the equivalent of $ 1,800 at the time. “Yooo guys! I do not know what just happened, why did my monkey sell just for 0.77 ??” wrote TBALLER.
Yooo guys! Idk what just happened, why did my monkey sell just for, 77 ?????
– TBALLER.eth (@ T_BALLER6) January 24, 2022
As a result, the buyer of Bored Ape # 9991 resold, using the alias “jpegdegenlove,” the NFT resold almost instantly for 84.2 ETH, or the equivalent of nearly $ 200,000, VICE reports. According to crypto-analytics firm Elliptic, “jpegdegenlove” paid a total of $ 133,000 for seven NFTs before quickly selling them for $ 934,000. A few hours later, the earned ether was then sent to Tornado Cash, a mixing service used to prevent funds being tracked.
“jpegdegenlove” appears to have partially compensated at least two of its victims by sending 20 ETH to “TBALLER” and 13 ETH to “Vault327”, reports Elliptic. The same day, “TBALLER” tweeted that the buyer of his Bored Ape NFT gave him a share of his sales – in the form of 20 ETH – that does not cover the cost, but at least is a start.
Looks like the user sent me 20 ETH from the sale? Does not cover the cost of the invaluable monkey, but it is probably a start🥺 https://t.co/ByDqNA5sF9
– TBALLER.eth (@ T_BALLER6) January 24, 2022
Another attacker bought a single Mutant Ape Yacht Club NFT for $ 10,600 before reselling it five hours later for $ 34,800, according to Elliptic.
According to Elliptic, NFTs with a market value of $ 1.1 million were acquired in this way. Elliptic has identified at least five attackers who bought at least 12 NFTs well below market value, including Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Cool Cats and CyberKongz NFTs.
How could it happen?
The reason for the involuntarily cheap sale was that OpenSea NFT owners were not aware that old offers on their NFTs were still active. These old offers have now been used by buyers to buy the NFTs at prices chosen by the seller in the past, but which are now often well below current market prices.
These records were still active because OpenSea does not automatically cancel the listing if a user transfers an NFT from a wallet while the listing is active. If the user transfers NFT back to the wallet, the inventory remains active. OpenSea co-founder Alex Atallah writes in a blog post on the OpenSea website that while the issue has been discussed as an “exploit” or “bug”, the reality is that it is a fundamental feature of blockchain marketplaces. “Only the person listing an item for sale can cancel that listing (ie OpenSea cannot cancel a listing on behalf of a user),” Atallah explained in response to recent events. “This is a very good thing in many cases, and an important aspect of what makes web3 so special: your NFTs are completely under your control,” Atallah said.
The fact that OpenSea users did not cancel their old offer, but moved them from one wallet to another and back again, is probably due to the fact that in order to delete a sale offer with a certain price or to set a new price, inform the process and pay a handling fee in ETH for the network. So users would transfer the NFTs to another wallet and then back again, and then relist them for sale – at a different price – thus avoiding the fees. However, the old offers were still active, which many users were probably not aware of.
OpenSea co-founder Atallah emphasizes in the blog post: “We wish we had educated users more clearly and proactively about the risks of not having bids canceled before an NFT is transferred.”
OpenSea will refund the affected money
According to Atallah, as soon as the NFT market became aware of the issue in early January, OpenSea identified a number of improvements and started development to help users avoid such issues in the future. In the last few weeks, OpenSea has reduced the default duration of listings on the site from six months to one month “to limit the number of listings that remain active long after they become relevant.” In addition, they have “built-in a dashboard in the user profile where a user can view all their records and delete those that are no longer relevant.” In addition, OpenSea has created a “notification to mark when a user transfers an NFT from their wallet that has an active listing attached, so they are notified and can cancel the listing when the item is uploaded.”
The support team “also worked tirelessly to reach out to affected users and refund them,” Atallah said in the blog post. At OpenSea, one understands the community’s frustration that the company has not become more public in its communication on this topic. “Simply put, we were concerned that the more attention we pay to this mechanism, the more it could be abused by bad actors. For this reason, we focused our efforts on reaching affected users 1, instead of doing so. news more known: 1 close. ”
OpenSea says it will continue to work to meet the high bar set by the community and find ways to correct if the NFT trading platform ever performs worse.
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