Whenever a company is dealing in the stock or crypto worlds, the concern of insider trading is very real. People within these businesses often have an idea of upcoming actions that may influence stock or cryptocurrency value, and may use that information to put themselves or their friends at an unfair advantage. This was exactly the case at OpenSea, as the company has confirmed one of its executives engaged in NFT insider trading.
OpenSea confirmed in a new blog post that an executive at the company used insider knowledge to purchase NFTs prior to them being featured on the digital marketplace. A light investigation into the matter exposed this individual’s identity as Nate Chastain, head of product at OpenSea, as reported by Tom’s Hardware.
Following the incident, OpenSea has implemented two new rules in order to prevent the issue from happening again in the future. This includes restricting employees from purchasing any NFTs that are said to be featured in the shop, as well as prohibiting employees from using any company knowledge to purchase or sell NFTs on any platform.
It’s not mentioned in the OpenSea blog post if the executive is facing any legal action, or has even lost his job over the incident. Insider trading has long been an issue in the stock market, and is now bleeding into the bustling world of NFTs.