The world’s largest NFT marketplace, OpenSea, found itself in hot water this week after allegations of insider trading emerged on the platform. It is understood that an employee of the company used their influence to flip NFTs for huge profits.
There are allegations that product executive Nate Chastain used burner wallets to buy NFTs. then, after gaining interest by featuring them on the homepage, sold them. This double dealing was discovered after ill-gotten gains were transferred to a wallet containing CryptoPunk owned by Chastain.
One of these transactions, around Dailydust’s “Spectrum of Ramen Theory,” was purchased for 0.25 ETH and then sold a few hours later for 1.25 ETH. In between, OpenSea featured the project on its homepage. Incidentally, the item has changed hands another 15 times since the event.
OpenSea has confirmed reports of insider trading on their platform, a practice that is indeed prohibited within their framework. No individuals were mentioned in the statement, and OpenSea has not issued a termination of employment. However, Nate Chastain has yet to issue a statement of his own.
The NFT market giant will now conduct a third-party investigation into the incident and promises transparency going forward. So far, the allegations haven’t slowed down the OpenSea behemoth.