Magic Eden Addresses Trade in Fake NFTs

y00ts and ABC are mixed with fakes

Solana-based leading NFT electronic marketplace Magic Eden announced today that it has updated its authentication layer to address the listing and trading of fake NFTs.

A few days ago, some users pointed out that some collections listed on Magic Eden were contaminated with fake NFTs. On the 4th, HGESOL, also known as the NFT whale and founder of the NFT electronic marketplace Hadeswap, called for the suspension of trading of y00ts and ABC NFTs.

Do not buy these @y00tsNFT on @Magic Edenthey are fake!

Basically, every single collection is fake on Magiceden, a massive exploit is happening ongoing.

High-value NFTs are suffering the most, as attackers choose to exploit higher-value NFTs first. pic.twitter.com/35RYHOKVxd

— HGE.SOL (@HGESOL) January 4, 2023

A fake NFT is a fake NFT that does not originate from the mint address of the original collection and only has a real NFT image. Several investors said they unknowingly purchased fake NFTs disguised as y00ts and ABC, only to be told they were fake as uncertified NFTs. A total of 25 fake NFTs were sold and 10 collections appear to have been affected.

Magic Eden initially claimed that a bug in Metaplex’s cache was the cause, but a bug on Magic Eden’s side is believed to have been exploited. The bug has been pointed out by users for some time.

As a countermeasure, Magic Eden has updated its authentication layer to prevent anyone from buying or selling non-certified NFTs from now on. The victim was to be fully compensated.

Earlier today, unverified NFTs were being shown as part of verified collections on ME. In the last day, impact was contained to 25 unverified NFTs sold in 4 collections.

We’ve resolved the issue and will refund those affected. Now, no one can buy unverified NFTs on ME.

— Magic Eden (@MagicEden) January 4, 2023

Recently, the trading volume of Solana NFT soared again. Major collections such as y00ts and ABC raise their floor prices significantly. It should be noted that with active trading, it is easy for those who try to commit fraud to increase. The point is to confirm the NFT issue address. There have been cases of fake NFTs being bought and sold on OpenSea before.