opensea bored ape ape nfts nftnewarcointelegraph

McKimmy] and other” users of its platform of “the extent and severity of vulnerabilities in its code,” even though such users “expected [OpenSea’s] security practices to comply with laws and regulations” and also expected OpenSea to “reasonably protect wallets which were connected to its platform.”

McKimmy claims that OpenSea – which has handled “over $11 billion in sales to date, including the sale of a Bored Ape Yacht Club NFT for $3 million” – has also run afoul of the law by engaging in negligence because it “owed a duty of reasonable care of [him],” which it breached by failing to “take proper measures to protect users,” “use reasonable security systems and networks,” and “implement processes by which they could timely detect, address and/or remediate security breaches,” among other things.

ApeCoin is billed as a “token for culture, gaming, and commerce used to empower a decentralized community building at the forefront of web3.”

Specifically, the $APE will serve as a token to govern the future of the Bored Ape community.

Notably, the token wasn’t created just by BAYC (though the founders are involved). Technically, ApeCoinDAO is the creator of ApeCoin. The problem? $APE seems to be replicating a lot of the problems that members of the NFT community decry in traditional capitalism: Venture capitalists and centralization.

Usually, those who have more tokens have more sway in a DAO’s governance. Andreessen Horowitz and Animoca Brands were two of the biggest recipients of ApeCoins, as they invested in Yuga Labs.
A spokesperson for Yuga Labs confirmed that they and other launch partners received a collective total of 14% (140 million tokens).

This is because the exclusivity is rewarding to those who made the decision to buy an NFT and join the crew.

NFTs, in general, have allowed those from all walks of life to be a part of one of the latest innovations in tech, culture, and finance. And BAYC is truly indicative of that. That doesn’t mean that there are no downsides or controversies related (like how they buy competitors and have venture capitalists on their Board of Directors), but it does mean that the Yuga Labs team has stuck by what they laid out in their roadmap.

BAYC acquisitions

In March of 2022, Yuga Labs announced it had acquired both CryptoPunks and Meebits. As a result, Yuga Labs now controls three of the most valuable NFT collections in existence.

Yuga Labs says that, with the acquisition, they aim to foster a “community of builders” creating derivative works around the two projects.

A screenshot posted by one Twitter user showed an OpenSea page for the hacker’s account receiving more than a dozen NFTs from the Bored Ape, Mutant Ape, and Bored Ape Kennel Club projects — all presumably taken from users who connected their wallets after clicking on the phishing link.

The profile page tied to the hacker’s wallet address was no longer visible on OpenSea at time of publication. OpenSea head of communications Allie Mack confirmed to The Verge that the hacker’s account had been banned on the platform, as OpenSea’s terms of service prohibited fraudulently obtaining items or otherwise taking them without authorization.

But given the decentralized nature of NFT, the contents of the hacker’s wallet can still be viewed on other platforms.

Having unsuccessfully attempted to “resolve the issue numerous times with [OpenSea],” which has “failed to reverse the transaction, return the Bored Ape, and/or provide any adequate remedy,” McKimmy filed the lawsuit, seeking monetary damages from OpenSea to the tune of “the valuation of the Bored Ape, and/or monetary damages over $1,000,000.” (McKimmy claims that he also tried to regain possession of the NFT from the individual who currently possesses it, but that individual allegedly refused to return it.)

As for what the value of the stolen ape NFT might be, the complaint states that it “unquestionably” has “significant value,” noting that Justin Bieber purchased Bored Ape #3001 for 500 ETH, or $1.3 million at the time of the transaction.

Web3 me— Sass (@SassBAYC) February 8, 2022

Prior to BAYC, Gargamel and Gordon Goner had been involved in crypto to a minor degree. Neither had experience innovating in the space, but they had been trading since 2017. Tomato and Sass were both a bit newer to NFTs and crypto.
The four came together and created the company Yuga Labs, and then they launched BAYC through Yuga Labs.

And which founder created the actual art? Well, that’s a little complicated….in that none of the founders made the art.

The lead artist behind BAYC’s original collection is a woman who goes by “Seneca” or “All Seeing Seneca.” Other artists included Thomas Dagley, Migwashere, and a couple who chose to remain anonymous.

The hack was disclosed on Twitter by BAYC just before 10AM ET on Monday morning. “There is no mint going on today,” the Tweet read. “It looks like BAYC Instagram was hacked.”

There is no mint going on today. It looks like BAYC Instagram was hacked. Do not mint anything, click links, or link your wallet to anything.

— Bored Ape Yacht Club (@BoredApeYC) April 25, 2022

Another tweet from a user unaffiliated with the project claimed to show the image that had been posted from the BAYC account, promoting an “airdrop” — essentially a free token giveaway — for any users who connected their MetaMask wallets.

Unfortunately, BAYC’s warning came too late for a number of holders of the extremely expensive Bored Ape NFTs, along with many other valuable NFTs stolen in the hack.

Bieber’s,” putting its value “in the millions of dollars and growing as each day passes.”

The Bored Ape #3475 NFT is currently priced at 225 ETH ($598,297.50) on the OpenSea platform.

In addition to monetary damages, McKimmy says that he has filed the lawsuit against OpenSea in order to “protect the interests of NFT owners, who reside in countries worldwide and use [OpenSea’s] platform,” and to force OpenSea “to enact sufficient security measures and address the known susceptibilities in its interface.”

As for how the case will play out, lawyer and intellectual property researcher Mike Dunford stated on Monday that he suspects it will likely end up in arbitration, and “when it does, the claim may turn on how much you can get away with disclaiming under New York contract law,” which is the state that OpenSea lists in the choice of law provision in its terms of service.

That’s the same amount that the entire BAYC community received, which is comprised of tens of thousands of individuals. No matter how you feel about it, one has to admit that it does seem like a bit of a loss when it comes to decentralization, which is a central tenet of the NFT community.

However, Yuga Labs failed to comment on this in their announcements. “The community’s been wanting ApeCoin for a long time now, so we’re excited to see it come to life through community ownership,” Nicole Muniz, CEO of Yuga Labs, said in a statement. “Yuga Labs will continue to be builders of products and experiences that bring new ideas and energy to the community.”

But of course, it must be noted that only the future will tell how all of this plays out.

So PAYC and PHAYC simply flip the right-facing BAYC avatars to face left, associate them with cryptocurrency tokens, and resell them.

What’s an NFT?

NFTs allow you to buy and sell ownership of unique digital items and keep track of who owns them using the blockchain. NFT stands for “non-fungible token,” and it can technically contain anything digital, including drawings, animated GIFs, songs, or items in video games. An NFT can either be one of a kind, like a real-life painting, or one copy of many, like trading cards, but the blockchain keeps track of who has ownership of the file.

NFTs have been making headlines lately, some selling for millions of dollars, with high-profile memes like Nyan Cat and the “deal with it” sunglasses being put up for auction.

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