Issue 33 🍵 Opensea confirms insider trading

And a quick tangent about future consequences.

Disclaimer: This newsletter is not financial advice. We buy what we like, and you should buy what you like.

Last issue, we mentioned that there was an accusation of insider trading thrown at the Head of Product, Nate Chastain, at Opensea. Unfortunately, the claim was proven to be true.

They released an ambiguous post not soon after talking about conduct, and it was observed that the employee had updated his Twitter status had left Opensea.

It’s been a week since this happened, so we’ll keep it brief. The only angle we want to lay out is that this was only so egregious because the act got caught, right?

The initial accusations managed to provide blockchain proof of trading activity, with proceeds going to a wallet with Nate’s own CryptoPunk.

The thing is, this operation could have continued if the wallets had been kept separate. It’s not hard to have a public wallet with the CryptoPunk and a separate wallet that does the trading, and just never cross transactions with either wallets.

And it’s “harmless” now. But eventually, as a big believer in NFTs, one belief is that it is inevitable that all of this bleeds into every other industry. And when we reach that point, how do employers even prevent this sort of behavior from happening again? An honor code wouldn’t be enough.

And sorry, Dan Finzer, CEO of Opensea, but we gotta disagree that NFTs aren’t financial assets. At this point, they already kinda are.

NFTs are financialized assets, and it’s not long before the stakes get higher from here. Once we can tokenize anything, we can sell anything, and laws aren’t going to progress quick enough to encapsulate all of that potential behavior.

Other news

🌱 Incoming Drops: Kobe Bryant, Freddie Mercury

🌱 NFTX recently launched their own marketplace. One of the features that beta testers loved was the ability to buy multiple NFTs in one transaction instead of having to make a transaction for each NFT.

🌱 We talked about Apple being against NFTs last week, but this week: a judge made a ruling that Apple has to let apps use other processors! This is only for the United States, but this definitely has some adjacent impact with NFTs.

Reading list

Creative corner

We’ve featured various kinds of graphic artists, but there are other forms of media that we haven’t given the spotlight to. This week, we’re featuring Joey Pecoraro who is a producer from Michigan. Aside from making his latest album, “Old Time Radio”, be available in your usual formats, he also made it into an NFT on Catalog! If you’re looking for music to chill out with, look no further.

Catalog uses the Zora protocol, so you can also see his profile and works there. You can also buy his album on his website! If you like what you’re hearing, follow him on Twitter, Instagram, Audius, or the other major streaming services.

Try this

Download the OpenSea app!

The NFT marketplace has recently released their mobile app on the Apple App Store and Google Play Store. For now, you can only browse for NFTs and favorite them. No marketplace features are available at the moment.

Some screenshots:

If you got any news or feedback to share, you can find us on Twitter.

🍵 See you again next Wednesday! - Elle and Gian