How the recent OpenSea incident taught us about the importance of fund security
The rising number of crypto users has also led to the increase in glitches, bugs, and even scams. With that, finding a trusted crypto platform for your investments is crucial. Recent incidents have underscored the reality that even established projects are not immune to vulnerabilities.
For instance, one of the world’s biggest NFT platforms, OpenSea, recently received complaints that their blue-chip NFTs had been purchased at previous, low listing prices. These listings were never canceled on the blockchain, despite what the OpenSea user interface suggested.
Later, OpenSea refunded a total of 750 ETH ($1.8 Million) to users who unintentionally sold their NFTs at far below market value due to an exploit involving “inactive listings.”
How did the exploit happen?
Some buyers have been using services like Tornado Cash to route money into crypto wallet addresses without disclosing the source, then using those funds to buy NFTs at previous listing prices.
The Ethereum Network requires users to pay a gas fee for every transaction. This includes canceling a listing on OpenSea that has not yet expired. Prior to implementing configurable expiration dates on listings by OpenSea, many NFT holders had inactive listings with no expiration date, necessitating manual deletion via a paid gas price. Expired listings are acceptable, but inactive listings are dangerous.
To avoid paying expensive Ethereum gas fees, some NFT owners found a solution. Transferring NFTs to a secondary wallet then returning it to the first wallet would remove the listing to the OpenSea UI.
However, the listing would just go” inactive” from “active,” which is purchasable by those who directly interact with the smart contracts.
After the inactive listing exploits, OpenSea told some users that OpenSea would refund the loss. Users were appeased about the response despite the sluggish response from the team.
News like this strengthens PrivacySwap’s stance on the importance of fund security. Since the platform is also entering the NFT world soon, events like this give us a heads up on how the NFT ecosystem should be managed.
As a platform that offers an initial NFT collection (for now), we will work even harder to prevent this event. We also assure the security of every NFT transacted under PrivacySwap. In addition, NFTs we offer, such as the genesis NFT, can also boost your farming experience in PrivacySwap.
Moving forward, in becoming a DEX with NFT features, we see this happening as an essential signal to strengthen the already robust systems that we have. Nonetheless, we know how valuable our users spend on blockchain technology. Thus, we assure everything will not go to waste.
Engage with us!