In an intriguing turn of events, a trader has walked away quietly with a lucrative 800 ETH, worth around $1.5 million, not by chance or a sudden market surge, but by outsmarting a bot into purchasing his overpriced non-fungible tokens (NFTs). The tale is one told by Hanwe Chang, the trader in question, who claims that he identified a bot duplicating his bids on the NFT marketplace Blur. Seizing the opportunity, he bought several NFTs and intentionally placed inflated bids, prompting the bot to mirror the action. This resulted in Chang selling his NFTs at a hefty profit. The strategy has sparked an intense conversation about its possible legal implications.
However, there is another side to this story as well. The bot’s purported owner, elizab.eth, responded to Chang’s story, alleging the funds were stolen and proposed a 10% bounty for their return. This has led to further debates surrounding the ethics and legality of exploiting trading bots for personal gain.
On a much sober note, July has seen a decrease in NFT volumes, as revealed by data aggregator CryptoSlam. It reports that July witnessed nearly half the sales volume as compared to earlier in the year, precipitating worries among NFT creators. The current bear market saw NFT volumes drop from $22 million at the start to a mere $12.8 million by the end of the month. The royalties from NFTs tell a similar tale, putting additional pressure on the creators.
Strikingly, despite the slide in NFT volumes, NFT-related thefts saw a decline in July 2023. As reported by blockchain security firm PeckShield, around $1.7 million worth of NFTs were pilfered, which is a decrease of 31% from June. The vast majority of these stolen NFTs found their way to marketplaces like Blur and OpenSea in under three hours after the theft.
Finally, in an exciting development, Gary Vaynerchuk, the charismatic entrepreneur and internet personality, has joined the NFT space. The talk-show veteran announced a partnership between his NFT project and global sportswear giant Reebok, resulting in a unique limited-edition sneaker, the ownership rights of which are tokenized as NFTs.
Undoubtedly, this whirlwind of activity in the NFT marketplace is a testament to its vibrant potential, despite its ongoing challenges. Yet, one cannot help but wonder if the traders’ ingenious, albeit potentially morally ambiguous, schemes and the shrinking NFT volumes signal a need for urgent regulations and stability in the ever-volatile crypto market.
Source: Cointelegraph
