With the rise of NFT, the question of how safe the markets are will inevitably arise, especially for OpenSea, the largest and most popular NFT site. As a peer-to-peer platform, OpenSea itself is not directly involved in creating, selling or auctioning NFTs. Instead, it is just a platform where different users can exchange NFTs.
Driven by the metaverse, new web trends and big brands, the NFT exchange has grown significantly, resulting in a multi-million dollar business. NFTs are units of data encrypted on the blockchain, and this gives them value and authenticity. NFT.
Open Sea reported that a recent phishing attack affected several NFTs, with valuable projects such as Decentraland and Bored Ape Yacht Club understood to be affected. While the exact total loss remains unclear, it’s not the first attack that OpenSea has experienced. The company claims it provides a secure platform, but some have warned that flaws in the code make it vulnerable to scams, fraud and attacks.
“Unfortunately, there are bad actors looking to take advantage of newcomers in the world of NFTs,” the company recently said in another Tweet. Additionally, OpenSea actually offers a lot of security advice, tips, and support. Hacking and phishing attacks typically require users to take some kind of action, be it clicking on a link or handing over some personal information. As OpenSea is a platform where users interact with each other, interaction in general cannot really be avoided. OpenSea suggests that users never share recovery phrases, click on unknown or broken links, and use multiple password protections. This is all in addition to getting support from official channels when needed. OpenSea says that if a user finds their account has been compromised, they should quickly move all of their items to a new wallet. The account will need to be marked as compromised and a process to secure the account will need to take place.
While the recent attack has targeted projects with a lot of experience in NFTs, the reality for new NFT creators is that making gains is likely to be far more worrisome than actually getting hacked. NFTs that, on average, sell for comparatively less. Regardless, OpenSea’s wide range of security advice highlights that the platform cannot be in complete control of security. There are many loopholes in the platform and it remains to be seen whether OpenSea will be able to update the security enough to avoid similar issues affecting the most used NFT market in the future.