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OpenSea says over 80% of its free minted NFTs were not original or fake

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Andre Cohen


OpenSea, the NFT marketplace that has valued $13 billion after raising $300 earlier this month, has a fraud problem. The company said in a Twitter post on Thursday that over 80% of the NFTs created for free on its platform were either plagiarized by other artists or spammed.

The alarming figure is for tokens made using the free minting tool on OpenSea. Sports teams that have sold NFTs in the OpenSea marketplace include the Golden State Warriors, Boston Celtics, and Washington Capitals, to name a few.

OpenSea’s integrity issue comes amid a report by Barron that says the White House is preparing to issue a “national security” memorandum that will instruct federal agencies to regulate digital assets such as NFTs and cryptocurrencies. The sports world was recently burned by crypto fan token startup Iqoniq, which went into liquidation after missing millions of payments to its prushartners.

Alex Dreyfus, CEO of Socios, another crypto fan token platform, said Iqoniq “lied about their funding” and left more than $10 million in debt unpaid to its partner clubs and leagues. “In 2022 there are 2 crypto companies spending money they don’t have, in football, motorsports, etc. and… will end up NOT PAYING and will damage properties again athletes who don’t do enough due diligence,” Dreyfus wrote on LinkedIn.

The cracks in the crypto-verse are yet to dampen the esports crypto craze. On Friday, LeBron James announced a multi-year deal with Crypto.com to educate students at his I Promise school about blockchain technology. Of course, James’s Los Angeles Lakers are now playing in the Crypto.com arena, while the upcoming Super Bowl will feature ads from Crypto.com and FTX. Candy Digital, the NFT marketplace owned by Fanatics, just sold a Shohei Ohtani NFT for $100,000 – a record sale for a non-fungible baseball-related token.

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