certify
Home arrow Article arrow Article Detail

OpenSea Refunds $1.8M in Ethereum and also planned to reduces the number of mints an NFT

Profile Image

Indrani bose Follow

INDIA

Jan, 31 2022

Jan, 31 2022

likes 0 | comments 0

Article Image

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 Despite the fact that the user interface on OpenSea implied that they had been canceled, these listings were never withdrawn from the blockchain.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.



likes 0 Likes | comments 0 Comments

Profile Image

Indrani bose

CBW - External Analyst

INDIA

Comments
Disclaimer: The information is for informational purposes only.​ This advertisement does not constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. None of the information and/or content available through this advertisement is intended as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any company, financial product, security or commodity. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses. In Making the investment decision, investors must rely on their own examination of the issuer and the terms of the offerings, including the merits and risks involved. Investments are speculative, illiquid, and involve a high degree of risk , including the possible loss of investment.