OpenSea Implements Shadow-Banning for Less Interactive NFTs
OpenSea, a prominent web3 marketplace for non-fungible tokens (NFTs), has recently taken action against certain NFT collections that have low trading activity on its platform. This move comes shortly after a study revealed that 95% of NFT collections hold no value.
The Case of “CryptoReaper” on OpenSea
A well-known crypto user and NFT influencer named Benie reported in a blog post on October 03 that the NFT collection called “CryptoReaper” has been shadow-banned on OpenSea. Let’s delve deeper into the details.
OpenSea shadowbanning collections that don’t fit its narrative. This is typically smaller indie artists that it thinks aren’t commercial enough.
Meanwhile big corps and connected wagmi individuals get instant verified status with a slick home page feature.
This is not the way👎 pic.twitter.com/8SavUzLDqk
— Beanie (@beaniemaxi) October 3, 2023
CryptoReapers, launched in 2021, is an NFT collection consisting of 320 limited edition digital items on the Ethereum network. Despite making 134 sales, the collection has only generated a trading volume of 2.335 ETH or approximately $3,887.
Due to CryptoReaper’s relatively low sales and lack of interactivity, OpenSea has deemed it not commercially viable. Meanwhile, larger NFT projects and well-connected individuals continue to receive instant verification status and prominent homepage features.
OpenSea Faces Criticism for its Actions
OpenSea’s decision to shadow-ban certain NFT collections has further damaged its reputation among the crypto community. Many members argue that the platform should focus on empowering creators instead of excluding them. Benie expressed his dissatisfaction by stating:
“This is typically smaller indie artists that it thinks aren’t commercial enough. This is not the right way.”
Opensea locked my collection. They also removed my erc-20 with no explanation and oh…
I’ve sold well over $3M in NFTs, have had my project deranked from trending and also still don’t have a blue check.
Cancel culture sucks. Being cancelled for selling too much art sucks even…
— TAYLOR.WTF (@TAYL0RWTF) October 3, 2023
In August, OpenSea announced a change in its policy regarding creator fees, making them optional rather than mandatory. This decision sparked a debate about compensation and ownership within the NFT ecosystem. As a result, OpenSea faced backlash from major NFT projects such as Bored Ape Yacht Club creator and Rarible, who threatened to withdraw their support.
On @opensea‘s decision to sunset their Operator Filter. pic.twitter.com/ahc155WWkX
— Yuga Labs (@yugalabs) August 18, 2023
Hot Take: OpenSea’s Struggles Continue
OpenSea’s recent implementation of shadow-banning for less interactive NFT collections has added to its ongoing challenges. The platform’s actions have raised concerns about fairness and inclusivity in the NFT space. It remains to be seen how OpenSea will address these issues and regain the trust of artists and collectors.
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