OpenSea users are wondering about a possible token launch after a vague message on the company’s X account. Opinions in the community are divided on whether such a launch would increase interest or become a permanent rug pull.
Trading volumes on the NFT marketplace have come to a standstill and a legal battle from the SEC could be in store.
OpenSea Token Launch: Deceptive or Fraudulent?
Today, NFT marketplace OpenSea posted: “So… how long have you been using OpenSea?” on his official X account. Community comments immediately started speculating that this could lead to a token launch. The market hit a three-year low in April and it looks like the best opportunity to launch has already passed:
OpenSea drops trading revenue volume in USD. Source: Dune
Several prominent commentators in the NFT space questioned OpenSea’s intentions and motives. For example, user Loopify, the founder of a web3 project, claimed that the company is “known for making the worst decisions within NFTs.” He also claimed that a failed launch would destroy any remaining community goodwill. STIX founder and CEO Taran Sabharwal was even more blunt:
“Rumor has it that your founding team has already left via secondary sale. Your core employees left because you weren’t going to launch the token in 2021. Launch it now and check out the whole thing [crypto Twitter] dump on you. Please make it a free cash event for all, a final farewell to OpenSea,” said Sabharwal.
In other words, he suggested that the remaining OpenSea team is trying to squeeze in one last round of hype before a final rugpull, similar to the allegations Ren Protocol was confronted last month.
Another similarity between the two is that OpenSea made non-binding promises in early November about a 2.0 platform launch in December. The company has not released any further details since then.
On the other hand, some community members rejected the idea that OpenSea was planning an underhanded move. For example, crypto marketer Danny Dope said, “The company is definitely not on the rise,” but a token launch would reignite interest.
“Opensea has the opportunity to make an absolutely good chess move in valuing older volume. I just think they need a huge USP to get people doing volume there, besides just UI improvements which will of course be valuable,” wrote popular NFT collector Rahim Mahtab on X.
Whatever the company’s motivations, it is undeniably in a difficult position. Earlier this year, the SEC served a notice from Wells to OpenSea. Even if the next SEC chairman is friendlier to the crypto industry, that won’t necessarily help a beleaguered NFT market. Between the waning interest and legal issues, it’s clear why so many commentators expect the end.