OpenSea, the renowned NFT marketplace, is under scrutiny once again for promoting the Fatzuki collection, a project seemingly dormant since July 2023. The platform's official Twitter account stirred controversy by endorsing Fatzuki, an Azuki imitator, sparking concerns within the crypto community.
Fatzuki May Be Inactive
ZachXBT, an on-chain investigator, highlighted Fatzuki's Twitter inactivity, suggesting potential exit liquidity schemes. Post-OpenSea promotion, Fatzuki NFTs surged to 0.019 ETH, a remarkable leap from near-zero valuations. OpenSea swiftly retracted the post amid community backlash.
Echoes of Past Controversies
This development echoes a prior scandal involving former OpenSea product manager Nate Chastain, convicted of insider trading. The platform also faced a phishing scheme recently. The Fatzuki promotion intensified discontent on Twitter, with users accusing OpenSea of endorsing a potential rug-pull project.
Questionable Timing
The promotion coincided with OpenSea's recent staff layoffs, raising queries about the company's strategy and financial health. Despite the surge in Fatzuki's floor price, questions linger about OpenSea's motivations in endorsing a project associated with declining NFT values.
Fatzuki's Unusual Surge
OpenSea Analytics revealed a 610% surge in Fatzuki's floor price within 24 hours post-promotion. Trading volume spiked from virtually nil to over 9.88 ETH in a few hours. ZachXBT publicly questioned the sudden rise, highlighting the project's launch in July alongside other collections, all experiencing recent price declines.
As the crypto community dissects OpenSea's actions, uncertainties persist regarding the true intentions behind promoting the seemingly inactive Fatzuki NFT collection.