It’s open season on OpenSea

Dogged by scams and insecurity from the get-go, OpenSea’s latest phishing disaster does no favors for NFT users.

Phishing for tokens

OpenSea is no stranger to controversy and the latest phishing saga does nothing to challenge its reputation. It is the world’s largest exchange of Non-Fungible Tokens (NFTs) – unique pieces of digital art stored in the blockchain – and has confirmed around 32 users had their tokens stolen and sold for an estimated $1.7 million worth of Ethereum – one of OpenSea’s cryptocurrencies of choice.

This phishing scam is only the latest in a long line of controversies hitting the exchange. From system glitches affecting asset prices to stolen artwork and phishing scams by the dozen, OpenSea appears only as strong as its users’ passwords.

Why does it keep happening?

While NFTs are stored on the blockchain of its users, access is protected often by only a password – something the digital con artists of the internet have little struggle in acquiring. So while claims to the safety and security of the NFT space aren’t necessarily wrong, it isn’t the full picture either.

Love it or loathe it, crypto enthusiasts have helped push NFTs from a fringe concern into a mainstream asset class. But along with the gold rush have come newcomers aplenty – sometimes lacking even basic security knowledge.

Even hardcore NFT users will admit there is plenty of fraud waiting to catch out unsuspecting buyers, so if you’re an NFT buyer or holder, make sure you’re keeping a close eye on your artwork.