OpenSea's New Collection Settings: A Double-Edged Sword for NFT Teams
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Chapter 1: Introduction to the Issue
Recently, while preparing a new ETH smart contract and setting up a collection on OpenSea, I encountered an intriguing challenge. Those familiar with the NFT space know that scams are rampant, especially given the significant financial stakes involved. This situation complicates things not just for marketplaces but also for NFT project teams.
Consider this scenario: You are planning an NFT drop titled "Nuclear Cat Squad." (For the record, I just invented that name—hopefully, it doesn’t already exist.)
You begin promoting your project on Twitter and other platforms, showcasing sample NFTs and building a following. Initially, your efforts go unnoticed, but over time, you manage to attract 10,000 followers, and excitement begins to build.
Then, out of the blue, a message appears on your Discord: "What’s this?" A user has linked to an OpenSea collection created by a scammer who has appropriated every preview image you've shared, set up an account under the name "Nuclear Cat Squad," and claimed the URL "nuclearcatsquad." This unfortunate scenario has played out countless times in the NFT community.
This type of issue was anticipated early on, prompting us to develop a workaround.
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Section 1.1: Our Previous Strategy
To mitigate such risks, we advised clients to create temporary wallets and establish multiple collections on OpenSea. For instance, they would set up "Nuclear Cat Squad," along with variations like "Nuclear Cats" and "Nuclear Cat Squad NFT." While this strategy somewhat deterred scammers, it was impossible to secure every desired name, and scammers always found a way around it.
When it came time to launch, we would deploy the contract, mint an NFT, and then have the client log in to OpenSea to modify the temporary collection name and URL. By changing "Nuclear Cat Squad" to something like "Nuclear Cat Squad Old," we could free up the names, allowing us to secure the intended name and URL for the actual collection.
We've successfully implemented this strategy with several clients preparing to launch collections.
Subsection 1.1.1: OpenSea's New Code
However, during my recent setup, I discovered that this tactic no longer functions as it once did. When attempting to change the name and URL, OpenSea prevented me from claiming it, despite indicating that the name was available. Instead, it flagged the name as "too similar" to an existing one, suggesting I contact support for assistance. (I’ve submitted a request and will update with their response.)
Section 1.2: The Consequences of Code Changes
I suspect that this is an instance of a well-intentioned coding fix inadvertently leading to new complications. While it's beneficial for established collections—preventing potential scams like a new "Bored Ape Yacht Club"—this change poses significant challenges for unlaunched projects.
Without the ability to create temporary collections, NFT teams risk having scammers snatch up their desired names and URLs before their official launch. This longstanding issue will likely persist, making it increasingly difficult for new collections to establish a unique identity on OpenSea. Consequently, launching a collection will always involve the risk of conflicting with a scam collection that has already claimed the name and URL. NFT teams will have to rely on support to resolve these conflicts, which can be time-consuming and problematic during a launch.
Chapter 2: What’s Next for OpenSea?
I am currently awaiting feedback from support regarding this issue and will provide an update once I receive their recommendations.
In the meantime, it’s crucial to remain vigilant against scams in the NFT space.
The first video, titled "New scam on OpenSea: How to not get REKT," discusses the latest scams affecting NFT collectors and provides strategies to avoid falling victim to these schemes.
The second video, "THE MOST COMMON NFT SCAMS TO WATCH OUT FOR! [EASY TO MISS]," highlights prevalent scams that can easily go unnoticed, offering insights on how to recognize and avoid them.
Jim Dee is a prolific writer, developer, and multimedia creator based in Portland. You can explore his work, businesses, books, and more at JPD3.com. Thank you for reading! Image of a cat courtesy of Midjourney AI.