OpenSea’s Latest Incident Poses A Big Question On NFT Marketplace’s Security Infrastructure

The NFT sector has yet again come under suspicion, as recent phishing attack on the OpenSea platform raises many queries about the present security system.

NFT Growth

Although many cryptocurrencies have been recently facing drops in value, the Non-Fungible Token (NFT) sector is one that is still seen to be flourishing among the alleged chaos. This is because thousands of popular mega companies such as, Beverage company, Coca Cola and sports giant, Adidas have been shifting their focus towards bringing their own set of NFT products into the crypto market. According to sources around the internet, worldwide NFT sales have reached to almost a staggering $40Billion in value, that is continuing to increase as time passes on.

Risky Ecosystem?

However, with every huge ecosystem, comes tons of security issues as well. Such securities issues plague the networks, forcing many investors and traders to question about the space. The very recent phishing attack on leading NFT platform, OpenSea happened just after the company announced how they will be delisting any NFT that are currently stagnant, basically showing that the sector is quite venerable and lacks proper security standards.

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Details on The Attack

About what happened, OpenSea had publicly stated that they will be introducing a new smart contract upgrade and gave it users a time frame to move their registered NFTs from the Ethereum blockchain to the smart contract and those who did not follow the transfer guidelines would suffer the risk of their listings going to waste.

This gave hackers a chance to shine, as just a few hours, a phishing attack came into the spotlight, basically letting the hackers acquire precious NFTs from users before they could transfer them to the smart contact.

According to CTO of Bluezelle, Neeraj Muraka, since OpenSea was utilizing the services of the Wyvern, this protocol was connected to user wallets, hackers used this opportunity to setup fake representatives through emails, misguiding users to conduct sightless transactions and letting the hackers steal NFTs from users.

Improving Standards

Although the hacker did return some of the NFTs, but it didn’t help the case. Alexander Klus from Creaton stated that the system needs clear signing standards in which users can be guided correctly to what they must do when conducting these types of transactions.

Many have stated that an effort must be made by not only OpenSea, but other NFT platforms as well to improve their security stands, but some have also stated that even if OpenSea did improve its standards, people must take responsibility of educating themselves about the dangers of doing online transactions.