Why Did OpenSea Abruptly Halt Its Airdrop?

OpenSea, the largest NFT marketplace in the world, announced the suspension of its new XP rewards system. This was introduced on January 28, but quickly provoked a wave of criticism from the community. This decision comes in a particular context where the platform is attempting to reinvent itself with the recent launch of its SEA token.

OpenSea pulls back and ends airdrops

On January 28, 2025, OpenSea launched the beta version of its new OS2 platform, accompanied by an experience points (XP) system. These points were intended to allow users to qualify for a future airdrop of the SEA token, the native crypto of OpenSea whose launch was announced on February 13. However, the implementation of this system quickly stirred controversy within the community.

The criticisms particularly focused on the XP point allocation mechanisms, which favored intensive trading practices at the expense of genuine creators and collectors.

Influential users, like collector Wale, notably pointed out that the system encouraged “wash trading,” a practice involving artificial transactions to inflate volumes.

Even more seriously, the absence of a reflection period between transactions, unlike its competitor Blur which imposes a 30-minute delay, allowed traders to multiply high-frequency transactions without any real financial risk.

The situation peaked when some users began to spend up to $20,000 in transaction fees to climb the XP rankings. This points race created an artificial environment where the same NFTs were looped between a small group of traders, solely for the purpose of accumulating points.

These speculative behaviors were significantly deviating from the original spirit of the project, which aimed to reward the loyalty of historical users of the platform.

A swift reaction to community criticism

In response to these criticisms, Devin Finzer, CEO and co-founder of OpenSea, decided to suspend the XP rewards linked to listings and auctions. The platform is now focusing on “XP shipments”, a new mechanism introduced on February 14 that prioritizes the purchase and holding of NFTs rather than frantic trading.

This decision aligns with a broader move to return to basics for OpenSea. At the launch of the SEA token, Finzer had already recognized that the platform had become “too corporate” and had strayed from its Web3 roots. The suspension of the controversial rewards system demonstrates OpenSea’s willingness to listen to its community and prioritize a more balanced development of the NFT market.

This realignment comes in a context marked by as many opportunities as challenges for cryptocurrencies, particularly in the United States, as indicated by the keys to the crypto market. The platform, which has generated nearly a billion dollars in revenue since its establishment in 2017, seeks to consolidate its position as a leader while preserving the interests of its historical community.