EtherFi, the decentralized liquid staking platform, recently encountered a major setback when OpenSea, the renowned NFT marketplace, implemented a sudden halt on all transactions involving staked Ethereum NFTs. To add to the mystery, OpenSea also inexplicably removed all pending orders related to these transactions.
EtherFi expressed their frustration and confusion in an open letter addressed to OpenSea regarding the sudden disruption of their operations. On July 11th, they launched “ether.fan,” an NFT collection backed by staked ETH with a strong focus on Ethereum decentralization.
The launch was a resounding success, with all 3,000 NFTs sold out within a day and over 6,200 ETH staked. The trouble began when listings of the NFTs on OpenSea disappeared without any prior notice or warning.
Excitement turned to bewilderment when EtherFi noticed that listings on it had vanished, and new ones appeared to be disabled, accompanied by a vague error message. Strikingly, EtherFi received no prior warning or communication from OpenSea regarding the move.
The EtherFi team tirelessly attempted to establish contact with them through various channels. However, their efforts were met with resounding silence for multiple days. Eventually, an unexpected response from its support email left the crypto community intrigued and questioning.
OpenSea’s Surprising Explanation
OpenSea has explicitly stated that NFT collections participating in financial activities requiring registration or licensing are not allowed on their platform. This statement suggests that OpenSea considers staked ETH as potentially falling under the category of activities that may require licensing or registration. Some perceive this stance as overly cautious, especially considering that even the SEC has not made an explicit declaration on this matter.
The EtherFi team expressed their confusion and frustration, emphasizing that the “ether.fan” NFTs were essentially wrapped staked ETH with unique PFPs. The collection was not speculative; rather, it belonged to the utility NFT category, designed for non-speculative purposes.
The clash between EtherFi and OpenSea has raised concerns about the latter’s policies and decision-making processes. While EtherFi acknowledges that OpenSea may not have malicious intent, they suspect a lack of coherent coordination within the company due to its size, with over 300 employees.
It also underscores the need for clear and consistent guidelines from marketplaces to foster innovation and responsible growth in the crypto industry.
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