Derin Finzer, co-founder and CEO of OpenSea, said the non-fungible token (NFT) marketplace would step up its efforts to combat fraud and plagiarism.
Although fraud, intellectual property (IP) theft, and plagiarism are prohibited under OpenSea’s conditions, “at our scale, thorough policies aren’t enough,” Finzer wrote in a blog post on Wednesday.
To date, the platform has developed systems to counteract the majority of prohibited actions, including a new authentication system, an image scanning “copy mint prevention system,” and improved search capability to assist users in finding genuine information.
OpenSea went on to state that the firm’s primary focus areas are trust, safety, and customer experience, beginning with transparent user guidelines and standards spelled out in its Terms of Service. Because not all NFT marketplaces follow and enforce the same standards, the company’s Terms provide the ground rules for what is and isn’t allowed on OpenSea. They also serve as a vital guide for the community and wider ecosystem.
OpenSea an open sea of lawsuits
Despite this, the ecosystem is replete with fraud and hacking, and OpenSea – the largest platform by market volume – has been chastised in the past for being slow to respond to events where stolen NFTs were sold on.
OpenSea, one of the most well-known crypto startups, is facing backlash over nonfungible coins that have been stolen and plagiarised.
Plagiarism has also increased on OpenSea, with vendors converting traditional artwork into NFTs and then selling the pieces without paying the original creator.
Mr. Chapman is one of many crypto aficionados who have expressed concerns about OpenSea, an eBay-style website where users may explore millions of NFTs, buy them, and sell their own. OpenSea has grown to be the leading NFT marketplace and one of the most well-known crypto start-ups in the previous 18 months. The business has raised more than $400 million in funding from investors, valuing it at a whopping $13.3 billion, and has hired executives from internet behemoths such as Meta and Lyft.
Mr. Chapman missed out on his projected ApeCoin windfall because he had lost his ape, which he had planned to spend to buy a property near his wife’s family outside of Houston.
OpenSea, on the other hand, stated in May that it was deploying image-recognition technology to combat plagiarism. However, because the scanning program only compares newly uploaded images to other NFTs on OpenSea, it is unlikely to find artwork copied from other websites.