OpenSea, which is currently the largest NFT trading platform in the crypto money industry, was mentioned with a big scandal. Head of OpenSea’s product department Nate Chastain He has been accused of trading on inside information, and this has been almost proven.
Chastain Trades With Insider Information
OpenSea’s senior manager, Chastain, attracted attention due to the many transfers to the known wallet address, and after the investigations, it turned out that Chastain earned income from this. Chastain, who was determined to buy the important works of new NFT projects without sharing them on the home page and introducing them on this OpenSea platform, was found to be buying them very cheaply, and when these are introduced later, they can sell at high prices and generate income continuously.
It is known that when OpenSea promotes the work of an artist or project on its home page, the price of this work increases significantly. We can actually think of it as listing a cryptocurrency on Coinbase.
Twitter user Zuwu, on the other hand, found that many unknown wallets first bought the NFTs that appeared on the homepage, then sold them and interestingly sent the funds to Chastain’s wallet. This brought the case to light.
Hey @opensea why does it appear @nachastain 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?
— Zuwu🟩 👻🎃🦇 (@ZuwuTV) September 14, 2021
OpenSea officially acknowledged this situation by publishing a statement on the subject and stated that an investigation has begun on Chastain’s case. This actually poses a huge problem and investigative risk for cryptocurrency platforms. The crypto community is currently reacting to this situation.