OpenSea users are questioning the possibility of a token launch following ambiguous posts on the company's X account. The community is divided on whether a launch like this will help garner interest or be the final ripple.
The NFT market's trading volume has slowed to the limit and could face a legal battle with the SEC.
OpenSea token launch: misguided or fraudulent?
Today, NFT marketplace OpenSea posted, “So… how long have you been using OpenSea?” On the official X account. Responses from the community quickly began speculating that this could lead to the issuance of tokens. With the market hitting a three-year low in April, the best opportunity to launch already appears to have passed.
a decrease in OpenSea's U.S. dollar trading revenue; Source: Dune
Several prominent commentators in the NFT space questioned OpenSea's intentions and motives. For example, user Loopify, founder of the Web3 project, claimed that the company is “known for making the worst decisions within NFTs.” He also argued that a failed launch would destroy any remaining community goodwill. Taran Sabharwal, founder and CEO of STIX, was even more blunt:
“Rumor has it that your founding team has already exited through secondary sales. Core employees have left as we will not be launching the token in 2021. Please watch. [crypto Twitter] Dump on you. Please make this a free money event that everyone can participate in to say a final farewell to OpenSea,” Sabharwal said.
In other words, he suggested that the rest of the OpenSea team is looking to squeeze one last round of hype before the final lag pull, similar to the criticism Ren Protocol faced last month.
Another similarity between the two is that OpenSea made a non-commitment in early November to release the 2.0 platform in December. The company has not released further details since then.
Meanwhile, some community members dismissed the idea that OpenSea was planning a fraudulent move. Crypto marketer Danny Dope, for example, said that while “the company is by no means on the upswing,” a token launch could reignite interest.
“OpenSea has an opportunity to make an absolutely good mode of chess move, with an emphasis on old volume. Not just valuable UI improvements, of course, but to get people to trade in large numbers there.” I think it needs a massive USP,” Rahim Mahtab, a popular NFT collector, wrote on X.
Whatever the company's motives, there is no doubt that it is in a difficult position. Earlier this year, the SEC issued a Wells Notice to OpenSea. Even if the next SEC chairman is friendlier to the crypto industry, that won't necessarily help the beleaguered NFT market. Between dwindling interest and legal troubles, it's clear why so many commentators are predicting its demise.
Disclaimer
In accordance with Trust Project guidelines, BeInCrypto is committed to fair and transparent reporting. This news article is intended to provide accurate and timely information. However, before making any decisions based on this content, readers are encouraged to independently verify their facts and consult a professional. Please note that our Terms of Use, Privacy Policy and Disclaimer have been updated.
