In this week’s newsletter, read about how Moonbirds founder Kevin Rose lost nonfungible tokens (NFTs) worth more than $1.1 million. Find out why an NFT collector is suing NFT marketplace OpenSea over locking his account for three months and how the Porsche NFT collection gained almost $5 million in sales volume, despite a failed launch. In other news, find out how NFT trademarks could potentially be a reliable signal for NFT traders. Lastly, professionals within the Web3 space shared various ways to combat NFT theft.
Moonbirds creator Kevin Rose loses $1.1M+ in NFTs after one wrong move
Moonbirds co-founder Kevin Rose lost over $1.1 million in NFTs after falling victim to a phishing scam. According to various analysts, Rose approved a malicious signature that let the attacker transfer tokens from his wallet. An on-chain analyst named “Quit” on Twitter said that the malicious signature was enabled by the Seaport marketplace contract, which is the platform that powers the OpenSea NFT marketplace.
After the hack, Rose urged his followers on Twitter to avoid buying NFTs from the Squiggles collection until everything has been flagged to avoid purchasing stolen NFTs.
NFT collector sues OpenSea for locking account after being scammed
An NFT collector has taken legal action against OpenSea for various allegations, including locking his account for over three months. Speaking to Cointelegraph, NFT investor Robbie Acres shared that two of his NFTs were stolen through a phishing scam, which he reported to the NFT platform.
However, Acres claimed that the marketplace asked him to perjure himself before finally unlocking the account after three months, resulting in alleged financial losses. Responding to the allegations, OpenSea claimed the theft happened outside its marketplace and had already disabled the items and unlocked the account.
Porsche NFT trading volume nears $5M despite launch woes, minting halt
Despite what some considered to be a failed launch, sales volume for Porsche NFTs surged to almost $5 million on Jan. 26, according to data tracking website NFTScan. The rise in trading volume came as a surprise as the car manufacturer stopped the minting process abruptly after its launch, following various complaints from users.
Keep an eye out for major company NFT trademark filings this year
NFT-related trademark filings may be “reliable signals” for collectors and traders. In an interview with Cointelegraph, intellectual property lawyer Michael Kondoudis pointed out that it’s impossible to register a trademark without any intentions for use.
Kondoudis also shared that in 2023, one of the most noticeable trends is liquor companies filing for NFTs. According to Kondoudis, well-known alcohol brands like Absolut Vodka, Chivas Regal and Malibu Rum have filed for NFT-related trademarks.
Here’s how to prevent NFT theft, according to industry professionals
As more people jump into NFTs, the space becomes a target for bad actors in Web3. However, professionals working in the crypto space believe some ways and tools could help users prevent hacks.
Due diligence, segregating NFTs in different wallets and using tools to check and revoke permissions are some of the ways highlighted by the industry experts who spoke with Cointelegraph.
Thanks for reading this digest of the week’s most notable developments in the NFT space. Come again next Wednesday for more reports and insights into this actively evolving space.