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Showing posts with the label non-fungible tokens

The first NFT related insider trading case.

Nate Chastain has been convicted of fraud and money laundering. He profited from his insider knowledge of which NFTs would be featured on OpenSea. If the second sentence in that short paragraph might as well be in Greek to your ears, allow me to translate. NFTs are "non-fungible tokens." This means that they are a now-faded financial fad, sort of like the tulips of the cryptocurrency realm. That is all you need to know about the term. OpenSea is an online marketplace for the trading of NFTs created in 2017. Daily trading volume there hit an impressive record of $2.7 billion on May 1, 2022. But that has dropped 99 percent over the following four months, and it has not recovered since. (As I say, this is a faded fad.) But OpenSea also contains a b log and newsy features. And there the opportunity for chicanery yawned. Chastain was in a position to know which NFTs would be featured on the newsy portions of the site, and to take a position on those NFTs on the trading portions of...