The OpenSea Scandal Demonstrates the Need for Increased NFT Regulation.
There is always an element of risk in dealing with non-fungible tokens (NFTs). However, it is often lost on people because of the rhetoric around digital assets. NFT is a digital asset with a resale value that is subject to rising and falling. It would make sense to consider it as a form of a trading card on the crypto market. Getting involved in the crypto market comes with its highs and lows. There are many insiders in the crypto market as well, who try to get ahead as the investments go up and down. This is why the SEC requires these crypto companies to disclose the stock trades of the executives.
To protect the interests of the users, the need for increased regulation of NFT has been realized. The NFT marketplace, OpenSea, has reportedly stated that it has prohibited its employees from using confidential information of the company. With this, the employees would not be allowed to use this information to buy and sell any kind of NFTs. With no proper regulation to put a check on the NFT marketplace, Twitter has become a place for enforcement which is backed by the community.
Many experts are of the opinion that the only way to establish the trust of the investors in the crypto market is by adhering to some of the demands by the regulators. The relation of the crypto industry with the regulators has been quite bitter in recent years. However, it has been realized that regulation is the only way digital assets can become more mainstream. The buyers need to know that they are getting a fair shot in this market.