Mass Reporting on Twitter and OpenSea causes issues for Crypto projects

Competition is fierce in cryptocurrencies. The projects with the largest following are typically the most successful. In some cases, it does not matter how much utility, development, or use-cases a token has – as long as there are enough people excited about it.

In early April, accounts flagged Axie Infinity’s Twitter, causing a suspension of its page. The hashtag #freeaxieinfinity trended as many were left bewildered. The resulting ban was eventually lifted after Twitter representatives found no wrongdoing by the project. 

While this has happened in the past, to other Twitter pages, a similar trend has emerged, and it involves OpenSea.

Mutant Cats is an NFT project that uses OpenSea as its main marketplace. Recently, accounts flagged the project’s DAO address as a scammer address. This caused OpenSea’s automated systems to ban the address from participating in the marketplace. 

Mutant Cats has over 10,000 NFTs on the marketplace with roughly 855 owners. Each of these cats is listed for around $7000. The minting process for these cats is still going. This OpenSea ban temporarily restricted users from trading these NFTs. 

These bans can cause fear for potential buyers and current holders. They also cool down what was once a very hot market. Mutant Cats has seen over 10,000 ETH in volume since its inception. Yesterday they had over 600 trades, today they have only nine.

The OpenSea restriction for Mutant Cats has been lifted but we will have to see if the damage is now already done. The success of this false flag campaign could spark similar attacks on other NFT platforms. 

Projects pick and announce specific days when new NFTs hit the market. Should these malicious users choose those dates to attack, it could prove very costly for projects.

This has users on Twitter, like popular NFT collector @Pranksy, wondering if there needs to be more due diligence before the automatic banning process takes place. 

NFTs have yet to lose any allure and continue to sell out for extremely high prices. Competitors in the space might use this as an opportunity to shift focus away from other projects and on to theirs.

There is hope for OpenSea to take a better look at its automated banning policies and begin to have manual oversight into the process to avoid these potential attacks.

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Source

Updated: 10/14/2021 — 19:00

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