OpenSea Steps in After NFT Art Theft Raising Questions About Decentralization

by AryanArtnews
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What is OpenSea?

OpenSea is a decentralized market where users can buy, sell and trade rare digital products. Rare items in the form of non-fungible tokens (NFTs) can range from art and collectibles to game items.

At the time of this writing, the Mutant Ape Yacht Club was ranked number one in trading volume for seven days, at E19,045.19. The boring Ape Yacht Club came second with a volume of E11,452.77. In particular, Mutant Ape Yacht Club has increased by 227% over the last 7 days.

Art and non-fungible token market

Non-fungible tokens, well known as NFTs, continue to grab news headlines. Unlike cryptography, NFTs are individual and unique. Therefore, an important feature is that they cannot be copied or duplicated. These qualities make NFTs particularly popular in the arts and entertainment world. In the art world, NFTs eliminate the need to certify art and reduce the costs associated with certifying potentially costly works.

Like art, supply and demand determine the value of NFTs. Each NFT is unique, so high demand can lead to significant price increases.

OpenSea freezes a stolen boring ape

Overnight, there was news that the owner of the famous art gallery, Todd Kramer, had his NFT collection stolen from his hot wallet. In response to a request from the gallery owner, OpenSea has frozen the stolen property. This is reported to be worth $ 2.2 million.

OpenSea has reportedly frozen 16 Bored Ape and Mutant Ape NFTs. Since the freeze, NFTs can no longer be traded on OpenSea.

Kramer stored valuable NFTs in a software wallet connected to the Internet. This made it possible for phishing scams to steal. The use of a cold wallet would have protected Kramer from such scams.

But another hot debate resulting from the OpenSea intervention was the issue of decentralization. According to the article, foul screams struck Twitter, and many emphasized the Open Sea move as a departure from the spirit of decentralization. From an OpenSea perspective, doing nothing can raise other concerns. But in the end, at the heart of the problem was the risk associated with using hot wallets rather than using cold wallets and holding valuable art NFTs in internet-linked wallets.

In December 2021, Pak’s “The Merge” officially became the most expensive NFT ever sold for $ 91.8 million. 28,983 collectors reportedly pooled together to buy “The Merge.” Until December, the most expensive NFT was Beeple’s collage titled “Everyday: The First 5000 Days.” One collector bought an NFT for $ 69.3 million.

This article was originally posted on FX Empire

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