Over the last year, scams in the non-fungible token (NFT) space have increased, this has prompted NFT platforms such as Opensea to look for ways to protect user assets and avoid scams.
Some of these measures to ensure the security of user assets have met backlashes and accusations of oppression of ordinary users.
OpenSea changes NFT policy
Top NFT marketplace, OpenSea has struggled to prevent theft and fraud in the face of scams. As a result, the platform introduced a policy to curb NFT theft by blocking flagged assets.
However, this policy received a lot of criticism since it punished users who had no idea they were purchasing stolen NFTs.
Within the week, OpenSea in a tweet said that it would change how it responds to user complaints about stolen NFTs. Previously, OpenSea blocked stolen NFTs traded on its platform as it conducts an investigation to trace the origin of the assets. This meant an indefinite hold on the asset for a long while.
According to the tweet, moving forward users reporting their NFTs stolen need to provide a police report within seven days of flagging the asset. The NFT marketplace added that it had previously required police reports in cases where there were “escalated disputes.” However, this is now mandatory for all the NFTs reported stolen.
These changes aim at preventing false reports. If a claim is not accompanied by a police report within seven days, the platform will lift the hold placed on that asset. OpenSea also said that the process of rescinding claims after users recover their stolen NFTs is now easier.
Furthermore, OpenSea later clarified that the requirement to have a police report would apply only to new claims of stolen NFTs and not the existing ones. OpenSea tops the NFT marketplace chart, and prior to this year’s bear market, processed billions of dollars worth of transactions.
Increase in NFT scams
The expansion of the NFT market has attracted scams. And one of the most common methods of NFT scams is phishing campaigns. These campaigns provide access to the user’s wallet where they can move the asset. And they are increasingly popular on social media platforms such as Twitter where hackers have targeted the accounts of top NFT projects like Beeple. They have duped users by requiring them to provide their account details to receive a fake NFT mint.