Popular NFT marketplace OpenSea discovered a massive error after a bug in its system which destroyed over $100K worth of NFTs.
The news was first revealed by Nick Johnson, the lead developer of the Ethereum Name Server (ENS), in a Twitter post on Wednesday. He explained the situation first occurred after he attempted to transfer the ENS, titled rilxxlir.ethto, one of his personal accounts.
However, the attempted transfer went directly to a burn address, which cannot be controlled or moved by anyone. At first, it was believed that Johnson was the only victim of this bug. But, 32 other transactions were affected including 21 users.
At present, approximately 42 NFTs were reportedly damaged by the bug.
At the time of writing, OpenSea had not made any official announcement since the discovery, including any details related to the cause or compensation of respective NFT owners. The bug has been fixed since then, however, the damage is irreversible.
OpenSea had been gaining massive traction for the past month or so after the marketplace reported over $1 billion in NFTs monthly transaction volume. Shortly after, it was revealed that its weekly turnover exceeded $1 billion.
Overall, the company’s monthly trading volume reached a staggering $3 billion in the month of August.
However, for the first time since August 21, OpenSea saw a decline in its transactions, after reporting less than $100 million in daily transactions volume.
Crypto News and analysis provider Coingape noted that its daily transactions volume dropped by 75% in just 10 days, when compared to OpenSea’s peak on August 29.
Recently, crypto-journalist Colin Wu reported:
“NFT popularity is decreasing. OpenSea shows that in the past 24h, Loot transaction volume -45.69%, CryptoPunks -90.81%, Bored Ape -14.58%. The floor price of CryptoPunks has fallen to 86.5 ETH, which was higher than 140 ETH before.”
The above report showed that top trading NFTs like Loot, CryptoPunks, and Bored Ape have dropped by nearly 100% in the last 24 hours, suggesting weakening trends.