OpenSea Refunds $1.8M in Ethereum to Users Who Lost NFTs From 'Inactive Listing' Exploit
Nameet Potnis
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OpenSea has now refunded consumers who sold valuable NFTs at substantially below their going market rate due to an?exploit involving "inactive listings". It reimbursed a combined total of 750 Ethereum ($1.8 million).
Several users of the largest NFT marketplace recently reported that their high-end NFTs, such as those from the Bored Ape Yacht Club (BAYC) collection, was bought at previous, low listing prices. Even though the user interface on OpenSea suggested the contrary, these listings were never cancelled on the blockchain.
What made this happen? Tech-savvy users have been funnelling money into crypto wallet addresses without disclosing the source, then using those monies to acquire NFTs at previous listing prices via services like Tornado Cash.
This isn't a brand-new exploit. Users must pay a gas price to complete transactions on the Ethereum blockchain, including cancelling a listing on OpenSea that has not yet expired.
Some NFT owners discovered a loophole to avoid paying Ethereum gas fees, which may quickly run into the hundreds of dollars for a single transaction. The listing on the OpenSea UI vanished if they transferred the NFT to a secondary wallet and then returned it to the initial wallet.
The listing, however, had changed from "active" to "inactive." Inactive listings can still be bought by blockchain professionals who deal directly with the smart contracts themselves rather than through OpenSea's interface.
In response, on January 24, OpenSea launched an "inactive listings" feature on its desktop site.
OpenSea informed some BAYC holders earlier this week that they would be reimbursed some Ethereum for their losses. Tballer, who lost Ape #9991 for 0.77 ETH (about $1,700), will have to pay 130 ETH ($330,000) to get his Ape back.
"Fixing this issue is our #1 company priority," OpenSea co-founder Alex Atallah. We have a team working on it right now, and we're putting a countermeasure in place."
Ledger CTO Charles Guillemet provides a few suggestions for those solutions: "An alternative design could have avoided such a problem," says the author. The UI on OpenSea, according to Guillemet, should have been more user-friendly. He stated, "Transferring the NFT should not remove the sell order from the UI."
While several DAOs have gotten into NFT collecting and investment, none have yet built a platform for the blockchain-based collectibles. However,?OlympusDAO, which was created as a kind of crypto central bank, aims for an NFT market.
The?Olympus Odyssey NFT?marketplace will be soft-launched on March 3 by OlympusDAO.
What is the purpose of an NFT market? To generate revenue for OlympusDAO members, as well as "provide a feature-rich NFT platform for DeFi natives and prove that OHM can be a medium of exchange," according to one of the project's primary contributors.
The new platform will be launched on Ethereum, but Olympus collaborates with TreasureDAO to develop a multi-chain NFT marketplace. Both marketplaces, according to OlympusDAO, should expand together.
TreasureDAO is also a part of the Olympus Bonds programme. Olympus bonds are comparable to traditional bonds in that they allow users to purchase OHM tokens at a discount by exchanging cryptocurrencies or liquidity provision (LP) tokens from another exchange.
OlympusDAO, which was founded in February 2021, claims to have recognised the value of NFTs and the cash flow potential of platforming the digital art form within the Olympus ecosystem, having raised 1,200 ETH (roughly $2.8 million at today's prices) through the sale of the?MUSHROHMS NFT collection?on OpenSea. By March, OlympusDAO expects a volume of 3,000 ETH ($7.17 million) from its initiatives.
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Another element that influenced the decision to build the NFT Marketplace, according to OlympusDAO, is the possibility of adding royalties to the DAO's treasury rather than sending them to OpenSea.
OlympusDAO's primary token, OHM, is an ERC-20 token that serves as the protocol's reserve currency and governance token. OHM holders can keep the token, stake it, or buy bonds to buy the token at a discount because the DAO's treasury value backs it.
Customers will be able to sell and buy NFTs without having to unstake their OHM tokens, according to Olympus, to create a free open market where anyone may start.
"We want to create a marketplace that is unparalleled in terms of creating a marketplace that supports the artists and creates an ecosystem for emerging and establishing artists," Flame said about OlympusDAO's vision for the marketplace.
According to co-founder Daniele Sestagalli, the staking and lending platform, Wonderland will be closing its doors following a disunited community vote.
The Wonderland (TIME) token's price has dropped by 10.43 % within last 24 hours. It has now fallen more than 97% from its all-time high.
Throughout the past couple of days, Wonderland has been under a lot of controversies.
Earlier this week, it was revealed that 0xSifu, the protocol's pseudonymous co-founder, is Michael Patryn, the convicted felon behind the now-defunct QuadrigaCX cryptocurrency exchange. He was sentenced to 18 months in prison in the United States after assisting in the operation of an identity theft ring known as Shadowcrew in the 2000s.
QuadrigaCX was later forced to close due to the death of his partner, and about $200 million in investor funds were never recovered.
The poll was opened on Jan. 29 to decide whether or not the project should shut down and give the treasury back to the community.
On the Wonderland governance forum, there were numerous active votes. At the time of writing, the vote to wind down the project and return the treasury to its holders had 55 per cent of the vote, while the vote to disband it had 45 per cent of the vote.
Despite the fact that the poll appeared to be almost evenly split, some Twitter users concluded that the poll showed a lot more votes in favour of keeping the project alive based only on community votes rather than token allocation.
According to Sestagalli, the division has resulted in a single path forward. "The duty of the Team is to enact the will of the token holders. As the vote is so close to 50/50, there is only one path forward, it is to reimburse/unwind." He said.
However, members of the "frogs" community were not ready to give up on Wonderland and are already looking for ways to develop a 2.0 version of the DeFi project.
The community wishes to migrate Wonderland to another decentralised autonomous organisation (DAO) or merge it with Daniele Sestagalli's Abracadabra DeFi staking project.
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