Would you rather scalp 19ETH (today) by front-running some NFT projects that you know are going to pump a little…
Or…
Would you rather have a 7 or 8 figure pay day (in a few years) by having equity in one of the biggest NFT marketplaces online?
While it’s super easy to pick the right answer in hindsight, this is the essentially the story that played out over the past few days.
The Head of Products at OpenSea (Nate Chastain) was recently called out on Twitter for potentially flipping NFTs using insider information.
The hustle went like this…
On OpenSea’s homepage, they list exclusive drops that can only be purchased from their marketplace. When you are a high ranking employee, you obviously get the inside scoop as to what will be listed on the site in the near future. Armed with this knowledge, its easy (and clearly tempting) to scoop up a few of the NFT’s before they are publicly listed… and once the hype builds up, those early investments can be flipped for quick profits.
In the regulated finance world, this is called insider trading. In the Wild Wild West of Cryptopia, its called shady and unethical.
So how did this get exposed? Whoops, the blockchain is public and transparent.
A Twitter user going by Zuwu said Chastain had "a few secret wallets" that purchased items that appeared on the front page of OpenSea, only to sell them a short time later.
As Head of Product, you can be certain this dude had a nice equity plan which could have easily turned into a fat 7-8+ figure payday in the future.
Unfortunately, because greed was stronger than ethics, poor Nate got the short end of the stick. After being exposed, OpenSea put out a statement on their blog, and Chastain later resigned.
NFT Spotlight
Many of you asked when we’re doing another NFT giveaway. We’re excited to let you know… the answer is next week! We’ll be giving away a few different NFTs, so stay tuned for details!
Which NFT project would you like to see us give away next week?
Yesterday’s Top NFTrades
(by volume)
The floor on the bored apes jumped something like 4 ETH in the past day. Nice little pay day for HODLin’ one more day.
Bored Ape Yacht Club
24H Vol: 1,811 ETH
Floor: 40.75 ETH0N1 Force
24H Vol: 742 ETH
Floor: 2.47 ETHMutant Ape Yacht Club
24H Vol: 730 ETH
Floor: 65.93 ETH
Stay tuned,