The Rising Security Threat in the NFT Market

03/02/2023 18:41 • Digital Disruptors • 87 views

It is reported that according to PeckShield monitoring, NFT worth 16.2 million US dollars was stolen in February this year, with a month-on-month increase of 268%. Nearly half of the stolen NFTs were sold within 82 minutes. About 47% of stolen NFTs are sold on OpenSea and about 21.7% on Blur.

Security team: NFT worth 16.2 million dollars was stolen in February

Analysis based on this information:

The non-fungible token (NFT) market has grown significantly in recent years, with the total trading volume surpassing $2.5 billion in the first half of 2021 alone. However, along with the growth of this new asset class, comes an increasing security threat.

According to PeckShield monitoring, NFT worth $16.2 million were stolen in February 2021, representing a month-on-month increase of 268%. This is a worrying trend, as the NFT market is relatively new and lacks proper security measures to safeguard these digital assets. The report also revealed that nearly half of the stolen NFTs were sold within 82 minutes, indicating an active and profitable black market trading platform.

OpenSea, the largest NFT marketplace, accounted for 47% of the stolen NFTs, while 21.7% were sold on Blur. The high percentage of stolen NFTs being sold on OpenSea, which is widely considered as one of the most reputable NFT marketplaces, suggests that even trusted platforms are not immune to security breaches. It also raises concerns over the effectiveness of current market regulations and the importance of developing more secure digital asset protocols.

The theft of NFTs highlights the need for greater security measures across the entire NFT ecosystem. Companies in the NFT industry need to implement robust security standards to protect users’ digital assets, while regulators need to enforce stricter rules to curb market fraud and illegal activities. For example, there is a need for more stringent account verification procedures, two-factor authentication, and regular audits of the platform’s security protocols.

In conclusion, the rising number of stolen NFTs highlights the vulnerability of the NFT market to security breaches. As investors continue to embrace this new asset class, there is an urgent need for greater security measures to safeguard their investments. NFT marketplaces must do more to prevent security breaches, and regulators must ensure that users’ assets are well-protected. The NFT market could potentially revolutionize the art and music industries, but without proper security, this growth could be threatened.

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The Rising Security Threat in the NFT Market

Security team: NFT worth 16.2 million dollars was stolen in February

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