OpenSea Refunds $1.8M in Ethereum and also planned to reduces the number of mints an NFT
On Friday, as per the report, the OpenSea community
has planned to reduce the number of mints an NFT creator can make to 50.
Creators can mint NFTs on the Ethereum (ETH) and Polygon (MATIC) blockchains. Users of OpenSea who accidentally sold valuable NFTs at an old price which was well below their going market rate through an exploit involving “inactive listings” will get 750 Ethereum, which is around $1.8 million reimbursements.
The Bored Ape Yacht Club (BAYC) collection of NFTs was recently purchased at old, cheap listing prices by several users of NFT's leading marketplace. Despite the fact that the user interface on OpenSea implied that they had been canceled, these listings were never withdrawn from the blockchain.
How did this happen?
Several tech-savvy buyers have been using Tornado Cash and other services to funnel funds into crypto wallet addresses without divulging the source and have used those funds to purchase NFTs at old listing prices. To execute transactions on the Ethereum blockchain, users must pay a gas fee, including canceling a listing on OpenSea that has not yet expired. Prior to the implementation of selectable expiration dates on listings, many NFT holders held inactive listings that did not have an expiration date and needed to be manually canceled via a gas fee.
Ethereum gas fees often run into the hundreds of dollars for a single transaction. To avoid paying Ethereum gas fees some NFT owners found a loophole. To avoid paying Ethereum gas fees, which can often run into the hundreds of dollars for a single transaction, some NFT owners found a loophole. If they transferred the NFT to a secondary wallet, and then back to the first wallet, the listing vanished on the OpenSea UI.
The exploit in question involved thieves buying NFTs by funding crypto wallet addresses to purchase NFTs from holders that had inactive listings without expiration dates.
CBW - External Analyst