Thursday, July 25, 2024

A flaw in the NFT marketplace undervalues tokens, allowing an exploiter to make $750,000

The non-fungible token market has been experiencing a lot of trading activity in the last year with people signing up to sign up for games. Another reason has proved to be a haymaker for a trader.

A bug in the NFT marketplace platform was discovered on December 31st, 2021 which made it easy for a trader to make money. He transferred NFTs listed on OpenSea at a lower price to his account. This bug was in the front-end of the program which didn’t update the price.

This issue is common to the following NFT collectibles – Bored Ape Yacht Club and Mutant Ape Yacht Club. The exploiter bought these NFTs at an old price and sold them for a profit at current market prices. The user has been named and his ID is jpegdegenlove and he earned a positive balance of 334 Ether thanks to his transactions.

Another user explained how the process works – when a collectible is listed for auction on the OpenSea platform and decides to cancel it, the market attaches a significant fee. This reduces the floor price of the collectible. Users can avoid this fee by transferring assets to another wallet and not cancel the sale altogether. This transfer eliminates the listing from OpenSea. The bug kept the listing active on OpenSea’s API.

According to reports, OpenSea is investigating the issue and did not respond to requests for comment. An option available to users is to check whether their listings have been removed. This can be done on Rarible, another marketplace with uses OpenSea.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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