OpenSea users are wondering about a possible token launch after a vague post on the company’s X account. Community opinion is divided on whether such a launch would help build interest or become a final rugpull.
Trade volumes at the NFT marketplace have slowed to a crawl, and it might face an SEC legal battle.
OpenSea Token Launch: Misguided or Fraudulent?
Today, NFT marketplace OpenSea posted, “so… how long have you been using OpenSea?” on its official X account. Replies from the community immediately began speculating that this may lead to a token launch. The marketplace hit a 3-year low in April, and it seems like the best opportunity to launch has already passed:
OpenSea Declining USD Trading Revenue Volume. 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 having the worst decisions within NFTs.” He also claimed that a botched launch would destroy any remaining community goodwill. STIX founder and CEO Taran Sabharwal was even more blunt:
“Rumour has it that your founding team exited via secondary sales already. Your core employees left because you wouldn’t launch the token in 2021. Launch it now and watch the entirety of [crypto Twitter] dump on you. Please make it a free money event for everyone, a final goodbye to OpenSea,” Sabharwal stated.
In other words, he suggested that the remaining OpenSea team is trying to squeeze one final round of hype before a final rugpull, similar to the accusations Ren Protocol faced last month.
Another similarity between the two is that in early November, OpenSea made noncommittal promises about a 2.0 platform launch in December. The company hasn’t released further details since.
On the other hand, some community members rejected the notion that OpenSea was planning an underhanded move. For instance, crypto marketer Danny Dope said, “the company is definitely not on the incline,” but a token launch would reignite interest.
“Opensea has the chance to do an absolute good mode chess move on valuing older volume. I just think they need a massive USP to get people to do volume there, beyond just UI improvements which ofcourse will be valueable,” popular NFT collector Rahim Mahtab wrote on X.
Whatever the company’s motivations are, it’s undeniably in a difficult position. Earlier this year, the SEC issued a Wells notice to OpenSea. Even if the next SEC chair is friendlier to the crypto industry, that won’t necessarily help a beleaguered NFT marketplace. Between declining interest and legal troubles, it’s clear why so many commentators expect the end.
