Manipulating prices to disrupt NFT auction robots is disrupting the NFT market OpenSea?

The NFT market OpenSea has always attracted attention. As of August 11, data from the block explorer Etherscan showed that OpenSea’s main smart contracts consumed more Gas in the past 24 hours than any other contract on Ethereum, accounting for 14.61% of the total consumption.

However, something strange happened in the OpenSea market.

Some Ethereum wallets seem to cancel orders in the NFT market at an alarming rate. At the time of writing, more than a quarter of the last 1,000 transactions using OpenSea contracts were cancelled. Most other transactions involve matching NFT buyers and sellers.

Manipulating prices to disrupt NFT auction robots is disrupting the NFT market OpenSea?

Mike Dudas, the founder of the digital asset research company The Block, proposed a possible explanation for this frequent cancellation: robots.

Lower price

“Currently, bots are disrupting OpenSea,” Dudas tweeted, “Bid below the minimum price, and then cancel the bid before being accepted but before it is executed.”

The Block founder explained that this strategy allows bot creators to lower prices and then acquire assets at lower prices.

The well-known Solidity developer foobar said that the robot observes whether someone will accept their bid, and then preemptively by canceling the bid, so the transaction acceptance fails.

“This makes users feel frustrated and disappointed. They will try again, but this time at a lower price.” Foobar said.

Dudas said that the robot can play the same trick in the process of selling the NFT. The robot can make an offer to see who is willing to buy, then withdraw the price and re-quote at a higher price.

The altsanonymous.eth address may be such a robot. According to data from Etherscan, it cancelled nine consecutive transactions on OpenSea two days ago.

The intrusion of robots on OpenSea may be a hot topic for the recent NFT community. The field of NFT is regarded as a means of monetization of digital works by creators as avid collectors, rather than a place where a simple robot manipulates value. But at the time of writing, the cheapest CryptoPunk is priced at $152,000, and the stakes are getting higher and higher.

Some users on OpenSea Discord are confused about the auction process. One of the users named gCAN claimed to be the highest bidder in the NFT auction, but did not receive the tokens. “Do I have to do something? Isn’t this automatic? Is it possible that the seller cancelled at the last second?” They questioned this.

Cancelled bid

Many users also reported an “execution was revoked” error. OpenSea stated that this is usually caused by a locked or non-transferable project.

Manipulating prices to disrupt NFT auction robots is disrupting the NFT market OpenSea?

Manipulating prices to disrupt NFT auction robots is disrupting the NFT market OpenSea?

Cancellation of bids is not free. Yesterday’s transaction price exceeded $10. But Dudas pointed out on Twitter, “Based on the number of cancellations I have heard from many collectors and series in the past few days, this strategy is definitely profitable.”

OpenSea users want to find other reasons to cancel their NFT product supply. A cryptocurrency influencer who used the alias davis on Twitter said that someone put a rare Yat (a string of emoji designed to serve as a digital identity) on the transaction, just to see what they could find. According to davis, someone bid 21 ETH for the triple sunglasses facial emoji.

Manipulating prices to disrupt NFT auction robots is disrupting the NFT market OpenSea?

21 ETH bid for this emoji string

In addition, more generally, OpenSea traffic has caused problems, and users talked about waiting for the completion of the casting NFT on Discord of the project. “If OpenSea has tokens, we can buy more servers,” quipped an influential trader who went by the alias Jebus on Twitter.

Robot vortex

Currently, OpenSea does not have its own token, but since it accounts for nearly 15% of all Ethereum Gas fees, OpenSea does not seem to need a token to stimulate growth.

With the continuous emergence of rumors about robots, users complaining about NFT rendering speed and slow response speed of support tickets, and eight engineering positions to be filled, OpenSea still has many problems to be solved.

Nevertheless, analysis provider Glassnode said that the market’s transaction volume in August is expected to reach 1 billion U.S. dollars, and a month ago, OpenSea set a record of 325 million U.S. dollars.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/manipulating-prices-to-disrupt-nft-auction-robots-is-disrupting-the-nft-market-opensea/
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