OpenSea Faces Backlash Over Fatzuki NFT Promotion

OpenSea, the renowned NFT marketplace, is under scrutiny once again for promoting the Fatzuki collection, a project seemingly dormant since July 2023. The platform’s official Twitter account stirred controversy by endorsing Fatzuki, an Azuki imitator, sparking concerns within the crypto community.

ZachXBT, an on-chain investigator, highlighted Fatzuki’s Twitter inactivity, suggesting potential exit liquidity schemes. Post-OpenSea promotion, Fatzuki NFTs surged to 0.019 ETH, a remarkable leap from near-zero valuations. OpenSea swiftly retracted the post amid community backlash.

This development echoes a prior scandal involving former OpenSea product manager Nate Chastain, convicted of insider trading. The platform also faced a phishing scheme recently. The Fatzuki promotion intensified discontent on Twitter, with users accusing OpenSea of endorsing a potential rug-pull project.

The promotion coincided with OpenSea’s recent staff layoffs, raising queries about the company’s strategy and financial health. Despite the surge in Fatzuki’s floor price, questions linger about OpenSea’s motivations in endorsing a project associated with declining NFT values.

OpenSea Analytics revealed a 610% surge in Fatzuki’s floor price within 24 hours post-promotion. Trading volume spiked from virtually nil to over 9.88 ETH in a few hours. ZachXBT publicly questioned the sudden rise, highlighting the project’s launch in July alongside other collections, all experiencing recent price declines.

As the crypto community dissects OpenSea’s actions, uncertainties persist regarding the true intentions behind promoting the seemingly inactive Fatzuki NFT collection.

* Original content written by Coinlive. Coinbold is licensed to distribute this content by Coinlive.