TL; DR Breakdown OpenSea Executive Chastain under fire for insider trading.Unhappy NFT collectors have taken shots at OpenSea, among other issues. The head of product development, Nate Chastain, at OpenSea, which is one the largest NFT marketplace in the world, has come under fire for using insider information in NFT trading. The NFTs were bought before they were featured on the platform and later sold when their value soared to make profits. They were doing quite well as the number of transactions surged since July. OpenSea admits this is ‘incredibly disappointing” OpenSea appears to have confirmed the accusations that Nate Chastain used insider information on the platform for NFT trading when they were promoted and returned profits to his public wallet. On-chain data suggests Chastain, using confidential information, could buy NFTs before they were announced on the homepage and helped him make huge profits. NFTs tend to jump in value when they or the artists are promoted on the homepage of OpenSea. Allegedly, Chastain knew that certain NFTs were listed on the homepage and used this information to trade NFTs. Twitter user Zuwu posted a message indicating that they had analyzed on-chain data; that is when the crypto community first became aware of Chastain’s activities. The Twitter post accused Chastain of buying NFTs ahead of homepage listings by using “a few secret wallets.” A more recent development is that Nate resigned ...
