On September 15, the top non-fungible token (NFT) marketplace, Opensea, revealed that an Opensea executive profited from insider trading. Opensea disclosed to the public that it learned Wednesday that an employee purchased items they knew would be displayed on our front page. Opensea didn’t name the employee but social media posts claimed that an Opensea executive had used “secret wallets”.

Opensea Team Says NFT Market Operators Are ‘Incredibly Disappointed’

Opensea is the leading NFT market in terms of trade volume and during the last seven days, Opensea saw $519. 51 million in volume, according to dappradar.com stats. While the volume is decent, it is down 48. 20% during the last week in terms of sales. The number of Opensea traders increased by 6. 10% to 164,878 traders. On Wednesday, the Opensea management team announced that an employee has been accused of leveraging and profiting from inside information.

Yesterday we learned that an employee purchased items they knew would be displayed on our front page, before they were publicly shown,” Opensea’s statement explains. This is extremely disappointing. We want to be clear that this behavior does not represent our values as a team.”

Opensea to Implement New Policies for Employees

According to the marketplace operators, are conducting an “immediate and thorough review of this incident.” The firm wants to gather a “full understanding” of how this happened and go over precautionary steps. The popular NFT marketplace Opensea added the company has implemented a few new policies such as:

• Opensea team members may not buy or sell from collections or creators while we are featuring or promoting them (e.g. on our home page); and
• Opensea team members are prohibited from using confidential information to purchase or sell any NFTs, whether available on the Opensea platform or not.

On September 14, the Twitter account @Zuwutv tweeted about an employee leveraging “secret wallets” to buy front page drops. “Hey, Opensea,” Zuwutv tweeted. “Why does it appear @natechastain 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?”

The problem with insider information during NFT market auctions and sales is that the prices of NFTs in general can be susceptible to manipulation. Bitcoin.com News has covered the subject of manipulated NFT sales and auctions. The report discussed shill biding and how it can negatively affect NFT auctions and general auctions.

While social media posts have accused an executive of insider trading, Opensea didn’t name the employee in Wednesday’s statements. Opensea explained that the market’s determination to keep the NFT industry safe and trustworthy is evident in the fact that a suspect employee was able to manipulate NFT sales.

“For an open, new internet that empowers creators as well as collectors, trust and transparency must be incorporated into everything we do,” Opensea stated. “We’re committed to doing the right thing for our users and earning back the trust of the community we serve.”

What do you think about Opensea’s issue with an employee who was allegedly inside trading NFTs? Opensea Insider Info1347395420

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