Analysis of violations of the rules of timed NFT auctions on the example of the "Rarible"
Match Systems
Readymade cryptocurrency solutions, blockchain investigations and compliance.
The specialists at Match Systems conducted an analysis of a case related to timed auctions for the sale of NFTs on the ?Rarible? marketplace.
Our attention was drawn to one of the lots, tokens.x, from the seller Unstoppable Domains. In the history of this lot on the timed auction, it is evident that the highest bid of 2 wETH was placed by a participant named Jason on 9/29/2023, 4:09 PM, after which there were no other bids for 10 minutes. However, the victory in this auction was ultimately awarded to another participant named Gaunter O'Dimm, who placed a bid of 2.01 wETH on 9/29/2023, 4:24 PM (15 minutes after Jason's bid).
According to the rules of conducting a timed auction on the ?Rarible? platform, participants can place bids to increase for 10 minutes after the last highest bid, and the size of the new increasing bid must be at least 5% higher than the previous highest bid. In this case, both of these rules were not followed.
Similar cases have occurred in the past in relation to other auctions conducted by the seller Unstoppable Domains on the NFT marketplace ?Rarible? (for example, deposit.x and cruise.x), which raises certain questions about the oversight of the regulations governing the operation of this service.
Lawrence Hutson is a Computer Scientist and Economist with expertise in Blockchain, Cryptocurrencies, NFTs, DeFi, AMM DEXs, Smart Contracts, dApps, GameFI/Metaverse, Cross Chain Assets, Tokenomics and DAOs
1 年Does rarible have a dashboard or api that enables a third party to change the behavior of the auction for certain items - like unstoppable domains
Lawrence Hutson is a Computer Scientist and Economist with expertise in Blockchain, Cryptocurrencies, NFTs, DeFi, AMM DEXs, Smart Contracts, dApps, GameFI/Metaverse, Cross Chain Assets, Tokenomics and DAOs
1 年Thank You - match systems for a great analysis of what happened - insider trading
Crypto and Web3 | Research Specialist | Executive?Assistant
1 年Match Systems' analysis uncovers a noteworthy issue, We greatly appreciate your striving to shed light on such matters and encouraging ongoing efforts to improve the #web3 ecosystem.
Founder and Managing Director at Narla, The Coconut Company | Head - Marketing and Communications at AdLunam.INC
1 年Great analysis by Match Systems. Just so many irregularities
Partnerships | Analyst | Human Resources | Executive Assistant | Web3
1 年Kudos Match Systems for this in-depth analysis. The level of detail and thoroughness in your research is evident.