Can OS2 set the stage for a possible comeback?

The OpenSea journey has been tough and controversial. The startup, fostered by Y Combinator, shortly grew to become a tech unicorn and an NFT sector monopolist. By 2025 the OpenSea timeline grew to become a “rise and fall” story.

On Feb. 13, the New York-based firm introduced the launch of a brand new model, OS2. The tweaks tackle a few of the considerations whereas ignoring others.

The NFT (non-fungible token) market continues to be alive, regardless of dropping momentum. The long-term pattern is much from being inspiring. However, in 2024, the general NFT buying and selling quantity reached $8.8 billion. The launch of OS2 is geared toward flipping the pattern, which is hardly a straightforward job.

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OpenSea and the NFT market disaster

Following the NFT market decline in 2022 media retailers began to query whether or not NFTs are useless. Lately, the sector obtained numerous negativity attributable to a number of scams (customers misplaced tens of thousands and thousands of {dollars}), safety breaches, insider buying and selling, and alleged hypocrisy of those that declare NFTs are about artwork and never only a cash seize.

NFTs have been criticized each by crypto bros and crypto skeptics. Some within the crypto neighborhood suppose NFTs did the crypto sector a disservice, distracting individuals from innovation whereas pushing hard-to-swallow narratives about promoting JPEGs for thousands and thousands of {dollars} and exposing newbies to dangerous investments. Many individuals who didn’t know a lot about crypto started to make use of the phrases “crypto” and “NFTs” interchangeably, associating each with frauds, dangers, playing, and so forth.

Practically any accusation pointed at NFTs kind of applies to OpenSea because the dominating market within the sector (boasting a 90% market share at its peak, dropping to 33% in 2025). In keeping with the Verge article, a former firm worker likened all of the fraud, cash seize, and craze that was happening throughout the platform in 2022 to a “blood orgy.”

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The crypto bear market worsened the corporate’s wealth because it saved funds in Ether (ETH). It noticed a extreme worth decline in 2022. The rise of Blur and Magic Edan, the robust competitor platforms, contributed to the quicker fall of OpenSea. The corporate was searching for new instructions and methods to revitalize. At the exact same time, it was persevering with a collection of sudden layoffs. Moreover, the SEC unleashed a battle on NFTs and OpenSea was one of many targets.

Whereas the NFT market left the headlines and shrunk considerably, OpenSea has turned from a monopolist to a shaken survivor. The platform revamp was important and, lastly, we’ll witness a brand new model of OpenSea.

What is going to change with the launch of OS2?

The platform received a complete replace. The primary route is switching to a web3 realm. Now, it permits the commerce of each fungible and non-fungible tokens. OS2 seamlessly works throughout varied chains, eliminating the necessity to bridge or swap tokens. The long-anticipated launch of an OpenSea token ($SEA) is geared toward fostering long-term sustainability.

Bulletins had been met positively, with customers and beta testers sharing their first impressions. Some say they lack the earlier options like trying to find gross sales by trait, however typically, the replace was met with assist.

Critics blame safety points and plagiarism for ruining OpenSea’s consumer expertise and the official announcement hardly touches on these points. Furthermore, OpenSea founder Devin Finzer fairly emphasised a extra anarchic method on social media.

“The NFT bull market modified us,” Finzer stated. “We received too company, too web2, and let worry of danger outweigh constructing for customers.”

Contemplating how dangerous OpenSea dealt with varied safety points throughout its finest days, the absence of the protection section within the announcement is disappointing.

Evidently the swap to web3 could also be an try to outsource safety to finish customers themselves. Hopefully, updates on safety will observe quickly.

In all probability the decreased market share of OpenSea and the general decline of the NFT craze might assist the corporate facilitate a safer and more healthy consumer expertise.

The crypto-friendly local weather — with Paul Atkins nominated by President Donald Trump to function chair of the U.S. Securities and Change Fee — units a pleasant background, too. It stays to be seen whether or not the OpenSea revamp has the potential to turn into a comeback story.

Learn extra: Leaked OpenSea consumer emails now public, SlowMist warns of phishing dangers