Users have expressed confusion over “mislabeled” transactions as a result of the latest “gifting” function on the well-known NFT marketplace OpenSea, which poses risks of NFT frauds. The new feature may prove to be a useful tool for NFT con artists.

Now, NFTs may be transmitted directly to any OpenSea wallet with just one transaction. As a result, buyers can use Ethereum to acquire an NFT from one wallet and then transfer the fungible token to a different wallet throughout the trading process. According to OpenSea, the feature was designed to conserve users’ gas.

The fact that some third-party wallet trackers make the gift recipient appear to be the actual buyer who purchased the NFT for themselves, however, strikes us as a major catch. For those who don’t know, third-party wallet trackers are trading applications that monitor influencers’ and celebrities’ NFT trades. Therefore, the feature might be used to execute NFT scams.

The founder of Metaverse HQ, going by the alias “JakeandBake,” revealed on Twitter that this functionality is already being abused by criminals. Yes, it is said that this feature is employed to provide the impression that NFT influencers like Gary Vaynerchuk and Pranksy are purchasing NFTs from various collections.

Twitter users @brawlers42 and @GrapeDutch619 were the ones who initially call attention to the trickery.

In response, Gary expressed his hope that the problem will be resolved in order to prevent individuals from being duped.

The activity feed and API, according to OpenSea’s response to these tweets, can distinguish between regular purchases and purchases for another wallet in the following ways:

  • Different “receiving” wallets are used for the sale and transfer events in “Purchase for another wallet” transactions.
  • The same “receiving” wallet is used in “normal” transactions for both the sale and the transfer event.

In response, OpenSea tweeted, “We could have done a better job providing 3rd party apps & developers a heads up, as this needs an adjustment to the way they display transaction data. We are currently working on this.

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