OpenSea/NFTS: Experimenting is not a game for security

The blockchain start-up OpenSea investors offers

unimpressed by the collapse of cryptocurrencies, a new way to participate in the digital economy. The marketplace for non -fungible tokens or NFTs now enables you to buy with several assets. Instead of using a cryptocurrency, buyers can bundle different assets, including other NFTs.

The use of another to buy another will not contribute much to improve liquidity, which could support prices. It also does not deal with fraud on the market.

nfts are recorded in the blockchain receipts for digital assets such as works of art or video game articles. Bored Ape Yacht Club NFTS are among the best known. Last year one was sold for $ 3.4 million. Buyers from Bored Ape also access social media that are only accessible to members. The financing for start-ups connected to NFTs, according to the pitchbook data, achieved $ 7.4 billion in the first quarter of the year.

The increase in the popularity of NFTS has changed OpenSea. In January, the marketplace collected $ 300 million with an assessment of $ 13.3 billion, compared to $ 1.5 billion six months earlier. She benefits from missing competitors. Coinbase introduced an NFT marketplace in April, but, according to Dune Analytics

The OpenSea NFT trades are celebrated as a tangible example of Web3 in action, a decentralized wonderland in which agents such as banks and big tech no longer sit between online transactions. Of course, OpenSea itself is an intermediary. A fee of 2.5 percent is charged to transactions.

blockchain investors are the idea that the financial experiments represented by NFTS are useful beyond Twitter profile images and a speculative price boom.

But the NFT sales volumes have dropped as cryptocurrencies. According to Dune Analytics, the monthly trade volume of OpenSea has almost halved to USD 2.6 billion between January and May.

The sector was also hit by an insider trading scandal, reports on NFT theft and copyright problems. Artists say that their works are plagued. Openea has to concentrate on eliminating fraud. It may be uncomfortable to introduce rules and regulations. After all, rules are not very decentralized. But Openea raises fees for a service. It must earn its fee by providing a safe marketplace.