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The Growing Number of NFT Frauds
NFT frauds are becoming more prevalent, and Web3 platforms are being forced to deal with maintaining and recognizing stolen funds more and more. The burden of this Web3 obligation has fallen mostly on OpenSea, the main NFT marketplace, although its practice of banning identified assets has drawn criticism, particularly for penalizing customers who were unaware that they were purchasing stolen NFTs.
As a result, OpenSea on Wednesday said through Twitter that it will modify the way it manages NFT assets that are reported as missing. Previously, OpenSea would place a temporary hold on access to such NFTs and their associated value while it investigated each case and prevented the purchase, sale, or transfer of any stolen assets on its platform.
Police in the World of NFT?
OpenSea said that it will now demand a police complaint to be made within seven days of labelling an NFT as stolen, saying in a tweet that it wished to address the elephant in the room. According to the market, it has done this in the past for escalated disputes, but it will now be necessary for all NFTs that have been reported as stolen. The action is intended to stop bogus reports. The hold on the items will be released if a police complaint is not filed on time.
In addition, according to OpenSea, the procedure for withdrawing a report in any other circumstance or when a user recovers a stolen NFT would be made simpler. OpenSea emphasized on Thursday that the police report only applies to recently submitted claims for stolen NFTs, not to ongoing cases. If we implemented this retrospectively, the marketplace tweeted that they would be asking them to take another step months or weeks later, when they’d hopefully put this behind them.
A blockchain token known as an NFT, which denotes ownership in a thing, is frequently used to digital products. Artwork, profile photographs, digital treasures, and video game goods are examples of common NFT use cases. Prior to the current crisis in the cryptocurrency market, OpenSea, the top NFT platform, regularly processed monthly trade volumes worth billions of dollars. Sharing and listening more are the first steps to improving. They’re determined to do better at both. They appreciate the input, the persistence, and the enthusiasm.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
