OpenSea’s woes expose gaps in NFT platform security

The inherent nature of blockchain technology makes it difficult to mitigate security risks, and current regulation offers investors little protection, experts say.
A Bored Ape Yacht Club NFT
A Bored Ape Yacht Club NFT

The meteoric rise of digital securities shows no sign of abating. By some estimates, the money spent on non-fungible token NFTs last year equated to the amount pledged by countries at COP26 to phase out coal, or the funding earmarked by the World Bank to deploy Covid-19 vaccines.

But recent incidents of theft and fraud on OpenSea, the biggest NFT marketplace by valuation, have highlighted gaps in security, and underscored how sluggish regulatory progress is struggling to keep up pace with the development of the industry.

The recent OpenSea hack is an example of a phishing attack, a phenomenon that has...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 3 article from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222

Share our publication on social media
Share our publication on social media