Did NFT Scams and Phishing Attacks on OpenSea Cause a Drop in NFT Sales?

Some statistics show that user activity and transaction volumes on OpenSea have dropped in recent days.

Some statistics show that user activity and transaction volumes on OpenSea, the worldโ€™s largest NFT marketplace, have dropped in recent days. This is likely due to the recent phishing attacks on the platform, which caused NFT traders to lose 254 digital tokens worth an estimated $3 million.ย 

OpenSeaโ€™s users have been complaining about security issues in the marketplace. One Bored Ape ownerย suedย OpenSea for alleged negligence and breach of contract after his expensive NFT was accidentally sold for 0.01 ETH (merely $26 at the moment).ย 

Sponsored

According to data providerย DappRadar, OpenSeaโ€™s sales were relatively low on the 22nd of February, and the platform experienced a 25% plunge in trading volume in the last seven days. In just one day, the daily user number dropped by 13.5%.

News outlet FXEmpire reported that around 227,000 users havenโ€™t been active on OpenSea in the last week.

Token Terminalย shows that the NFT marketplace LooksRare, which launched a few months ago, has surpassed OpenSea in revenue numbers.

However, separate data fromย Dune Analyticsย shows no significant difference in OpenSeaโ€™s trading volume in the last seven days.

On the Flipside

  • 2022 hasnโ€™t started well for the NFT industry, as OpenSea has already suffered from two major cyberattacks.ย 

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.