OpenSea launches NFT marketplace app after an insider trading incident

Renowned non-fungible token marketplace OpenSea has launched an application of its marketplace. A report unveiled this news earlier today, noting the app is available in Android and iOS versions. Reportedly, the app will let NFT enthusiasts check their NFT holdings, sales, and trading histories seamlessly on mobile.

According to the report, the app launch comes after OpenSea had a busy month in August, with a trading volume of $3.4 billion. This value more than triples what the marketplace recorded in July. However, activity began dying down towards the end of August and has since taken a sharp dive, according to data from Dune Analytics.

This news comes as OpenSea came under fire after one of its employees participated in an NFT insider trading scheme. Admitting this, the company said it learned a staff member purchased items after discovering the company intended to list them on its front page. OpenSea’s CEO, Devin Finzer, apologized to the platform’s users, adding that the company is conducting a thorough review of the incident.

Evidence points to OpenSea’s Head of Product

He added that his firm is committed to doing right by its users, adding it has already posted an official statement against the perpetrator. According to a Spokesperson, the company will share more details after completing an internal investigation. Although OpenSea did not name the employee behind the incident, a Twitter user going by ZuwuTV pointed a finger at the company’s Head of Product, Nate Chastain.

Per ZuwuTV, Chastain had been using secret crypto wallets to front-run sales on the platform. To justify these claims, the Twitter user traced transaction receipts through the public blockchain. Through these findings, ZuwuTV, purportedly, found that Chastain would buy an NFT just before OpenSea featured the piece on the front page of its website. He would then wait for its price to jump due to the listing buzz before selling the piece at a profit.

Per 8BTCnews, Chastain made a total of 18.875 ETH worth $67,310.89 (£48,896.31) at the time of writing. OpenSea refused to disclose how much the employee made from the illicit activity. However, the company said that it had implemented two new employee policies. These are banning employees from buying or selling from collections or creators featured on its platform and prohibiting staff from using confidential information to buy NFTs regardless of the platform they are listed on.