Project co-founder and CEO Darrin Finzer has shared details about how the platform seeks to fight such fraudulent activities in the future.
OpenSea’s efforts to combat fraud and plagiarism
In a blog post, the chief executive argued that OpenSea expects to see significant “trust and security” investments in some key areas such as piracy and scam prevention, IP breaches on the Internet, review and moderation scaling, and significant response time reductions. Is. In areas with high touch.
As such, OpenSea will automatically hide suspicious NFT transfers on users’ profile pages to reduce their visibility. Even as fraudulent transfers on public blockchains will always exist, the purpose of the NFT platform is to hide them from view.
The focus will also be on preventing NFTs from being shown on OpenSE. Finzer revealed that the team will spend the next quarter developing proactive solutions, such as creating more security around transferred NFTs, reducing spam, and collaborating with third parties and creators of all sizes. The platform has already started working with major rights holders to develop an “image-recognition” model for automatic removal.
In addition, OpenSea has established a dedicated moderation team to enhance review and moderation. Going forward, it will employ a “critical auto-detection” system for copyright issues and other fraud vectors. Finzer believes that this move will be crucial in establishing faster response times on critical items and preventing spam and scammy items on public blockchains from being viewed on OpenSee at all.
Significantly, investments are being made in critical areas of users’ issues to reduce OpenSea’s average response time to less than 24 hours.
“To that end, our number one objective as a company is to improve the confidence in our product – and to continue to build the best team to do it. More to come.”
Theft, fraud and lawsuits
The latest mitigation efforts by Finzer come at a time when OpenC saw its troubles, as demand for NFTs cooled amid a wider market rout. US law enforcement is no longer turning a blind eye to the booming economy, as evidenced by the arrest of Nathaniel Chastain, a former product manager at OpenC, who was charged last week with wire fraud and money-laundering offenses.
In 2021, as NFTs became a cultural sensation, the business for OpenSea increased. But subsequent hacks and fraud have left many upset investors complaining about the New York-based platform’s moves to compensate fraud victims and crack down on the theft.
However, some users argue that OpenSea, which receives a 2.5% cut every time non-fungible tokens are sold on its platform, does not have the financial incentive to prevent the sale of stolen goods. Earlier this year, a lawsuit was filed by Robert Armijo, a Nevada investor, alleging the platform failed to implement proper security measures and profited from the sale of stolen NFTs.
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