EetherFi condemns OpenSea's handling of EtherFan collection

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EetherFi condemns OpenSea's handling of EtherFan collection

NFT Marketplace Cites TOS Violations Despite collaboration with Liquid Staking Protocol prior to collection's launch.

Liquid staking protocol EtherFi has released an open letter condemning OpenSea, after the NFT marketplace suddenly halted trading of the company's EtherFan collection last week, featuring NFTs backed by staked ETH.

The two companies had been working together for weeks before the launch of the EtherFan collection, with a marketing strategy that depended on secondary market sales and cross-promotion, the Defiant learned from EtherFi CEO Mike Silagadze.

EtherFi's first mint was launched last Tuesday, with 1,000 NFTs minted out in minutes.

The team was dismayed to find that listings had inexplicably vanished from the market within 24 hours of EtherFan's deployment on OpenSea, leaving them without any explanation or clarification.

Silagadze, however, said the team's attempts to list their own NFTs produced an error code.

Blur, OpenSea's biggest competitor, was not an option for EtherFi due to Blur's platform's lack of support for ERC1155 tokens, which is the token standard used by EtherFan NFTs.

In an open letter to OpenSea, EtherFi condemned the NFT marketplace's actions.

Despite verbal assurances and the creation of a telegram group promising a cross-promotional marketing campaign, Silagadze said, radio silence is what the team got in response from OpenSea for nearly a week following pulling trading support.

The Defiant did not directly respond to the investigation related to the EtherFan collection, as to whether or not the company views staked ETH as a security. In a statement, a spokeswoman said that the company did not have a policy of censorship.

Silagadze said that OpenSea's stance is 'frustrating as hell' and 'the most aggressive stand that even the SEC hasn't taken. Other government agencies, including the Canada Revenue Agency and the Ontario Securities Commission, have admittedly said ETH staking is not a security.