OpenSea's NFT Gift feature becomes a concern for NFT frauds

OpenSea, the world’s biggest NFT marketplace, recently introduced a new NFT feature, “Gifting,” that would enable users to gift NFTs to their friends. However, this new feature turns out to be a big concern due to mislabeled transactions.

The gifting feature works quite simple. A buyer can buy NFT and send that NFT to any wallet during the transaction process as a gift, which saves gas money for users who transfer them manually from their own wallet to another.

The concern rose when the tracking apps that track wallet transactions showed that the recipient bought the NFT themselves instead of someone else.

Metaverse HQ's pseudonymous founder “JakeandBake” pointed out that this tool has already been exploited to show fake buys of celebrities and pop stars.

In the NFT community, many traders follow the trend. So, if a famous celebrity buys an NFT, the traders also buy it because of a possible worth increase. Although this method is highly risky, it is still quite common.

With the Gifting feature on OpenSea, many experts are concerned that scammers might fool people into buying rugpull NFT collections.

Seeing the concerns pointed out by the influencers regarding the mislabeled transactions on third-party wallet trackers, OpenSea updated its community by saying  “we could have done a better job giving 3rd party apps and developers a heads up, as this requires a tweak to the way they display transaction data. We’re doing this work now.”