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OpenSea Publicly Admits Over 80% of NFTs Were Spam, Fake, Or Plagiarized

NFT

www.thecoinrepublic.com 01 February 2022 14:30, UTC
  
Reading time: ~2 m

  • The world’s largest NFT marketplace, OpenSea, disclosed that more than 80% of NFTs were spam, fake, or plagiarized. These NFTs were minted using its free minting feature.
  • To stop the misuse of free minting, OpenSea announced a new rule that restricted free minting to only five collections. Each collection includes NFTs up to 50.
  • However, the company revised its decision to limit the free minting after the backlash from users. Users complained they were unable to complete their collection. 

Late Last Week, OpenSea, the largest NFT marketplace globally, in a series of Tweets, revealed that over 80% of the NFTs that were minted using its free minting feature were spam, plagiarized, or fake.

A few months back, Nate Chastian, a company’s executive, resigned when caught using inside information to gain from NFT collections before their drops. Users also got disappointed when the platform announced it was putting restrictions on its free minting tool. 

To all the creators in our community impacted by the 50 item limit we added to our free minting tool, we hear you and we're sorry.

We have reversed the decision.
But we also want to offer an explanation ↯ pic.twitter.com/Y3igaE1RM2

— OpenSea (@opensea) January 27, 2022

In December 2020, OpenSea originally launched the free NFT minting feature dubbed “lazy minting”, enabling artists to release NFTs without depositing upfront gas fees. However, on January 27, OpenSea proposed a new rule which restrained the free minting to only five collections of up to 50 NFTs each. This decision was taken to combat the misuse of free minting.

ALSO READ – HARMONY CONFIDENT BITCOIN, ETHEREUM BRIDGES WILL TAKE IT TO “NEXT LEVEL”

On the same day, users responded, saying that they failed to complete their collections. Therefore, OpenSea took back its decision to establish the limit. Further, the company claimed on Twitter that they are deploying various solutions to fully support creators while combating bad actors.

The firm said they acknowledge the inconvenience caused to the users and requested an apology from the users impacted by the 50 item limit that they integrated into their free minting tool.

OpenSea Also Facing User Interface Issues

OpenSea is also struggling with user interface issues besides facing harsh criticism for the limit and being unsuccessful in preventing fraudulent transactions. Some NFTs run the chances of getting listed below the market prices because of the user interface issues of the NFT marketplace. As a result, smugglers can take advantage of the situation.

Although OpenSea had a great head start in 2022, users have also begun exploring other platforms like LooksRare. Despite experiencing some issues, the upstart has acquired 

over $2 billion in sales since its inception on January 10.


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