NFT Opportunists Are Making a Mint Through an OpenSea Bug


Key Takeaways

An OpenSea listing bug is allowing opportunists to snipe high-value NFTs at low prices then flip them for huge profits.
One sniper has made around $740,000 through the exploit in the last few hours.
OpenSea has not commented on the issue despite ongoing complaints.

Share this article

Collectors of high-value NFT collections are inadvertently selling their assets at huge discounts due to an OpenSea listing bug. 

Blue Chip NFTs Lost Due to OpenSea Bug

A bug on OpenSea is causing a nightmare for blue chip NFT holders. 

Multiple collectors revealed today on Twitter that their high-value NFTs have sold for prices they were allegedly no longer listed for on OpenSea. 

One collector going by the pseudonym TBALLER.eth tweeted that their Bored Ape Yacht Club NFT had sold for 0.77 ETH even though it was allegedly not listed for sale on the marketplace. The current floor price of a Bored Ape Yacht Club NFT is 86 ETH, around $195,000. 

Yooo guys! Idk what just happened by why did my ape just sell for .77?????

— TBALLER.eth (@T_BALLER6) January 24, 2022

The issue is supposedly linked to the way OpenSea’s listing mechanism works. To list an NFT for sale on OpenSea, users must sign an order that allows them to list the item for free. Anyone that wants to purchase that NFT can then use that signature to fulfill the listing at the set price on-chain at any moment in time. 

The correct way to cancel a listing on OpenSea is to sign a separate transaction registering the order as invalid on-chain. However, many collectors simply transfer the NFT out of their wallet to save on transaction fees, effectively making the order impossible to fulfill. In that scenario, OpenSea removes the NFT listing from the website’s frontend, but the order remains active if it wasn’t canceled on-chain.

Because of this, when a collector moves their NFTs back to their original wallet, the listing becomes visible or listed for sale on Rarible—another NFT marketplace that aggregates listing orders from OpenSea. This effectively allows anyone to snipe the NFT at the original listing price even if the owner did not intend to list the item for sale. 

According to renowned smart contract auditing firm Peckshield, one address that exploited the bug was able to gain roughly 332 ETH worth around $740,000 at current prices. Their OpenSea transaction history shows that they have bought multiple sought-after NFTs from collections like Bored Ape Yacht Club, Mutant Ape Yacht Club, and Cool Cats for below their current market value and later flipped them for huge profits in the last few hours. They bought TBALLER’s NFT for 0.77 ETH earlier this morning and sold it for 84.2 ETH minutes later. 

The full scope of the damages to NFT collectors related to this exploit remains unknown, but multiple similar incidents have occurred in recent weeks. OpenSea is yet to comment on the issue despite frequent complaints from its users.

Disclosure: At the time of writing, the author of this feature held ETH and several other cryptocurrencies.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

OpenSea Acquires Dharma Labs

OpenSea, the largest non-fungible token marketplace in operation, has acquired Dharma in a private deal. OpenSea Team Gets New Execs With this acquisition, OpenSea will bring on board Dharma, whose…

LooksRare Dangles Carrot for OpenSea NFT Collectors

LooksRare launched with an airdrop today. The NFT marketplace is aiming to take on OpenSea. LooksRare Targets OpenSea Users A new NFT marketplace is hoping to topple OpenSea’s monopoly over…

OpenSea Saw a 646x Increase in Trading Volume in 2021

The NFT marketplace OpenSea has registered a colossal $14 billion in trading volume throughout 2021, far outpacing its 2020 performance of $21.7 million. OpenSea’s Breakout Year 2021 will go down…

Investing Survey: Win A $360 Subscription To Pro BTC Trader

We’re doing this because we want to be better at picking advertisers for Cryptobriefing.com and explaining to them, “Who are our visitors? What do they care about?” Answer our questions…



Source

Recommended For You

About the Author: cryptomaster

Leave a Reply

Your email address will not be published.