OpenSea, one of the largest NFT marketplaces, has reportedly established a foundation in the Cayman Islands.
This development has sparked speculation about the platform’s potential plans to issue a token.
OpenSea’s Cayman Islands Registration Fuels Token Speculation
On December 13, Mike Dudas, founder of 6th Man Ventures, shared a screenshot revealing that OpenSea registered its foundation in the Cayman Islands in August.
While OpenSea has yet to confirm or comment on the registration, industry observers believe the platform may be positioning itself to take advantage of the jurisdiction’s crypto-friendly policies for a token issuance.
Earlier this year, the Cayman Islands introduced amendments to its Virtual Asset (Service Provider) Act, enhancing anti-money laundering measures and introducing licensing for virtual asset platforms. These updates position the region as a prime location for crypto businesses seeking regulatory certainty.
However, it is unclear how the platform plans to leverage its registration in the Islands. Nevertheless, crypto community members are urging OpenSea to reward early adopters in any potential token airdrop. Some users hope the platform will consider transactions from 2021 and early 2022 during the NFT market’s peak.
“Are OpenSea going to backdate their token airdrop? Imagine if they pulled transactions back from 2021/2022. After seeing Blur and Magic Eden airdrop, I doubt OpenSea won’t go down a similar path to improve their volume and revenues in V2,” crypto user Wawkem advised.
Meanwhile, the rumors of a token launch arrive during a challenging period for OpenSea. Data from Dune Analytics show that at its height, OpenSea achieved an average of over $2 billion in monthly trading volume. In contrast, the platform’s highest volume this year is just over $120 million, as it has ceded market dominance to competitors like Magic Eden and Blur.
Observers noted that a token launch could provide the boost OpenSea needs to regain its competitive edge in the NFT market. Moreover, it could also serve as a lifeline for the marketplace as the company deals with regulatory pressures, including a Wells Notice from the US Securities and Exchange Commission (SEC).
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