Can OS2 set the stage for a potential comeback?

The OpenSea journey has been tough and controversial. The startup, fostered by Y Combinator, rapidly 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 deal with 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 aimed toward flipping the pattern, which is hardly a straightforward activity.

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OpenSea and the NFT market disaster

Following the NFT market decline in 2022 media shops began to query whether or not NFTs are lifeless. In recent times, the sector obtained lots of negativity resulting from a number of scams (customers misplaced tens of hundreds of 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 assume NFTs did the crypto sector a disservice, distracting individuals from innovation whereas pushing hard-to-swallow narratives about promoting JPEGs for hundreds of 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 on.

Almost any accusation pointed at NFTs roughly applies to OpenSea because the dominating market within the sector (boasting a 90% market share at its peak, dropping to 33% in 2025). Based on 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 sturdy competitor platforms, contributed to the quicker fall of OpenSea. The corporate was on the lookout 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 very important and, lastly, we’ll witness a brand new model of OpenSea.

What is going to change with the launch of OS2?

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

Bulletins have been met positively, with customers and beta testers sharing their first impressions. Some say they lack the earlier options like looking for 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 moderately emphasised a extra anarchic method on social media.

“The NFT bull market modified us,” Finzer stated. “We bought too company, too web2, and let concern of threat outweigh constructing for customers.”

Contemplating how dangerous OpenSea dealt with numerous safety points throughout its greatest days, the absence of the security phase within the announcement is disappointing.

It appears that evidently the swap to web3 could also be an try and 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 Trade Fee — units a pleasant background, too. It stays to be seen whether or not the OpenSea revamp has the potential to develop into a comeback story.

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