A bug on OpenSea's marketplace has deleted NFTs worth 28.44 Ether (ETH) which is worth nearly $100K.

The lead developer of Ethereum Name Service, Nick Johnson, revealed this news. He had lost an NFT that was linked to the first ENS named rilxxlir.eth. As a naming system, ENS allows its users to store text-based content as an NFT on the Ethereum blockchain. 

While Nick was transferring the NFT from an ENS account to a personal account, he noticed that the token was sent to a burned account. He further exclaimed, “I went to OpenSea, hit 'transfer' and entered 'nick.eth'. Moments later, transaction complete! rilxxlir.eth transferred to 0x0000...0000edd899b. Wait, what?”

Johnson’s first interaction with OpenSea confirmed to him that the NFT-burning bug was introduced on the platform’s transfer page. This bug affected all ERC721 transfers to ENS names for the past 24 hours.

In a tweet on September 9, OpenSea said, “We've reached out to the small number of users who were affected by the issue yesterday where sending an NFT to an ENS name sent it to the encoded version of the literal text (e.g. "OS.eth") instead of the associated address. This was a bug we introduced and fixed that day.”

Johnson was able to track at least 30 transactions from 21 accounts that sensed lost NFTs due to the system bug. Based on the reports, a total of 42 NFTs were burned. 

OpenSea & its development:

After OpenSea raised $100 million in an Andreessen Horowitz-led funding round, it became a crypto unicorn. OpenSea consists of a team of 37 members who reportedly handled 98% of the platform’s NFT volume.

To ramp up on the hiring process, OpenSea had also offered 1 ETH for every successful referral. With regards to this action, OpenSea’s head of product, Nate Chastain, said, “Trying to supplement our hiring process with some guerrilla recruiting due to the pressing need for manpower.”

Rushali Das

CBW - External Analyst

INDIA