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OpenSea introduces new stolen item policy to combat NFT theft

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OpenSea introduces new stolen item policy to combat NFT theft

A Twitter user claimed that they purchased a stolen NFT and OpenSea support advised them to sell it on another marketplace.

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OpenSea introduces new stolen item policy to combat NFT theft

As asset theft remains one of the biggest headaches in the nonfungible token (NFT) space, NFT marketplace OpenSea is making an effort to tailor its policy to incorporate additional measures against stolen items. 

In an announcement, the firm highlighted that its policies were made considering United States laws, where knowingly allowing the sale of stolen items is prohibited. However, the marketplace admitted that in some cases, buyers who unknowingly bought stolen items were penalized even though they were not at fault. Because of this and the NFT community’s feedback, the marketplace has adjusted its policy to expand the use of police reports.

Previously, police reports were used within the platform in escalated disputes. With the new update, they will be used to confirm all stolen item reports within the NFT platform. Without a police report within seven days, the platform will enable the buying and selling of the reported item again to avoid fake reports. Following this, the company has also made efforts to ease the process of re-enabling the buying and selling features once the stolen items are recovered.

The NFT platform also highlighted that it’s working to find other solutions to tackle the problem of NFT theft at its roots. According to the announcement, the company is working on automating threat and theft detection.

A Twitter user praised the move, describing it as a good first step and encouraged other platforms to follow suit while suggesting the consideration of the nuances of laws from other countries as well. On the other hand, some community members are still disgruntled, taking to Twitter to report their issues. A user wrote:

That’s funny because when my NFT was stolen, both Opensea and the NFT Company that created it, pretty much told me to go to hell. What a change in attitude. I guess it only matters when 1000s of people are complaining

— CompassionateNFTkidz (@COMPASSIONTENFT) August 11, 2022

Meanwhile, another user claimed that they had purchased a stolen NFT unknowingly, and the support staff at OpenSea recommended that the user sell it on another NFT marketplace.

Related: Hacker tastes own medicine as community gets back stolen NFTs

In June, the NFT platform enabled additional security features to protect its users from NFT scams. The feature hides NFT transfers that are flagged as suspicious automatically. The goal of this is to ensure that only legitimate transactions are visible in the marketplace.

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Grayscale Launches New Investment Product While Bitcoin Trust Crashes to 35%

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Grayscale Launches New Investment Product While Bitcoin Trust Crashes to 35%

Grayscale Investments is offering investors an opportunity to invest in Bitcoin mining hardware in the bear market.

The new investment opportunity, called the Grayscale Digital Infrastructure Opportunities LLC (GDIO), is now open to qualified individual and institutional investors, even as the asset manager allows ETF-related court proceedings to run their course.

Grayscale putting capital to work

Grayscale will use investor capital from the GDIO to buy mining hardware for a minimum of three years. It will use the hardware to mine and subsequently sell bitcoin. Mining is the energy-intensive process undertaken by a computer network to create a new transaction block and verify it. The node in the network that creates the block is known as a miner. A miner is rewarded in bitcoin for his effort, which typically requires large amounts of cheap electricity and computing power.

Part of the proceeds Grayscale will earn from its efforts will be paid out quarterly to GDIO investors.

“Grayscale’s unique position at the center of the crypto ecosystem enables us to create offerings that allow investors to put capital to work through differing market cycles,” stated Michael Sonnenshein, Grayscale’s chief executive.

GDIO represents another way the company has sought to provide investors with exposure to bitcoin without directly holding the asset.

Investors can also purchase shares from its GBTC trust and gain exposure to bitcoin through Grayscale’s legally regulated business in the U.S.

But Grayscale has a problem. Because investors cannot redeem shares in the trust for bitcoin, the price per share has dropped drastically, trading at a discount of 35% to its Net Asset Value. 

At the close of the trading day on Oct. 5, shares were trading at a shade over $12, despite being backed by $18.45 worth of bitcoin.

To mitigate this discount, Grayscale has pursued the conversion of GBTC into a spot bitcoin exchange-traded fund, which has so far been unsuccessful. The U.S. Securities and Exchange Commission denied the company’s latest application in June 2022, prompting Grayscale to pursue legal action against the federal agency. 

Nic Carter of Castle Island Ventures, a venture capital firm focused on early-stage public blockchain startups, said that Grayscale could wind down the ETF:

watching the GBTC discount. looks like ATL at -35%. on top of discounted spot BTC. paths to breaking open the piggy bank: SEC can approve ETF conversion, or Grayscale can wind down the trust themselves if they so choose.

— nic carter (@nic__carter) June 17, 2022

The SEC maintains that spot bitcoin ETFs are prone to underlying market manipulation.

Grayscale undeterred by SEC rejection

Despite consistent resistance from U.S. regulators, Grayscale launched its first European ETF in May 2022, which tracks the Bloomberg Grayscale Future of Finance Index, offering customers exposure to institutions at the crossroads of finance, technology, and cryptocurrencies.

Grayscale raised investors’ eyebrows recently when it announced that it had applied with the SEC to distribute 3 million ETHPoW tokens that were distributed to all Ethereum (ETH) holders after the controversial proof-of-work fork went live. 

At the time, Grayscale said it was seeking the rights to sell the tokens and pay out shareholders. 

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Colorado is accepting crypto for tax payments — it could be a mess or a shining example

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Colorado is accepting crypto for tax payments —  it could be a mess or a shining example

Colorado is now accepting crypto for tax payments — but if you choose to use that option, it could change the amount you owe…
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BNB Chain confirms BSC halt due to ‘potential exploit’

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BNB Chain confirms BSC halt due to ‘potential exploit’

Rumors of a significant hack on the BNB Chain were confirmed by the blockchain’s team, with all deposits and withdrawals suspended on the network…
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