Free NFT Trader Overpays for Free NFT by $191K!
An NFT collector has mistakenly purchased a free NFT for a staggering 100 ETH, equivalent to $191,239, on the OpenSea marketplace. The blunder has sparked debate among observers. Some suggest it was a wash trade, while others believe it was an honest mistake. Why did the collector pay so much for a free NFT?
The $191K Mistake: A Costly NFT Bid
The NFT in question was part of OpenSea’s Gemesis NFT collection. It is set of free NFT tokens designed to celebrate the launch of OpenSea Pro on April 4. Instead of acquiring the NFT for free, the trader accidentally placed a bid for 100 ETH, a massive 250,000% increase on the floor price of 0.04 ETH. OpenSea Pro, a marketplace aggregator aimed at professional users, offers an enhanced suite of features, including live cross-marketplace data and advanced orders.
There has been considerable speculation surrounding the reasons for the inflated bid. Some argue it was wash trading. Understandably, this is a form of market manipulation in which a trader buys and sells an asset to present misleading information to the market.
While illegal in traditional stock markets, wash trading is prevalent in NFT trading. However, others, such as Twitter user “0xSun,” have posited that the trader intended to bid $100 but mistakenly bid 100 ETH instead. A Reddit user who posted about the sale also cast doubt on the wash trading theory, pointing out that the open offer could have been accepted by anyone, making it too risky for wash trading.
The Importance of Caution in the Free NFT Marketplace
OpenSea acquired NFT aggregator Gem on April 25, 2022, and developed the platform into OpenSea Pro. Only users who purchased at least one NFT on Gem before March 31 are eligible to mint a Gemesis NFT. The minting window is will close on May 4.
The costly error of a collector buying a free NFT for 100 ETH is a remarkable one. It has sparked discussions about the potential for market manipulation in the NFT space. As the debate rages on, it remains unclear what took place. Whether the transaction was a genuine mistake or a more nefarious wash trade. Regardless of the truth, this incident highlights the importance of diligence. Especially when navigating the volatile and sometimes unpredictable world of NFT trading.