2021 Music NFT Sales Analysis

Guest Post by Water & Music



The following guest post is an abridged version of “Music NFT sales in 2021: What we learned,” a longform analysis of 2021 music NFT sales conducted by the Water & Music community in April 2022.

That full article — which includes a more in-depth discussion of case studies, NFT utility, and sales trends beyond what is in this post — can be viewed here.

The underlying sales data that informed our analysis is available in our music/Web3 dashboard, which is available exclusively to Water & Music members.


At Water & Music, we’ve been tracking music NFT drops since summer 2020 in a members-only database. While it is not exhaustive, we believe it is the most comprehensive view of music NFT primary sales that exists in the world today, and we continue to update, amend, and improve our data every week.

As NFTs continue to pervade the mainstream discourse, we thought now would be a good time to examine what we learned from music NFT sales in 2021. Over the course of six weeks, more than 20 contributors in our community worked together to analyze pricing and utility trends across over 1,500 music NFT drops in 2021, representing more than $86M in primary sales.

A bit about our database: In our tracking, we define a “music NFT” fairly liberally as an NFT that satisfies any of the following criteria:

In our view, an NFT does not have to contain audio to be related to music, nor do we consider every NFT that contains music audio to be an “Music NFT”. More broadly, our goal is to show where musicians or music brands are benefiting from the technology.

In our collaborative analysis, we found the following high-level takeaways:

Both in terms of number of drops and total revenue in USD equivalent sales, music NFT activity spiked early in 2021, cooled down in the summer, and then rose again in Q4. This reflected the overall NFT market. 

LABELS: 

Indie-label and unsigned artists accounted for the majority (64%) of primary music NFT sales. The absence of middlemen has been a strong rallying cry for many artists entering web3, particularly the appeal of artists having direct control of rights and access to their own communities.

GENRES: 

In our analysis, we defined genres broadly and at a very high level (no multi-hyphenate sub-genres here), and found that the most popular genre by share of primary sales revenue was electronic (65%), followed by hip-hop (19%). While the trend stayed true over time, we began seeing more uptake from other genres towards the end of the year like country and even classical. 

(Due to our location and community makeup our database tends to be biased toward English-speaking, Western countries, so we may be missing sectors due to language and platform barriers.) 

PRICING: 

Average music NFT pricing remains expensive, but has fallen over time. Between February and December 2021, the average price per tracked music NFT fell by 46%, from $18.8K to $10.2K per unit; the median fell by 27% over the same time frame, from $1,000 to $825 per unit. 

At the beginning of 2021, when the letters “NFT” entered the household lexicon, the attention to technology was largely due to headline-grabbing, celebrity-driven mega drops. The appetite for those high-dollar sales has subsided for the most part, and has been gradually replaced by multiple-edition, PFP-type collections, which is driving down the average cost-per-edition and presumably recruiting more collectors and fans into web3.  

PROTOCOLS: 

The Ethereum blockchain claimed only ~50% share of the number of music NFT drops in the second half of 2021, as alternatives like Tezos, Solana, Polygon, and Flow garnered more adoption. There were two likely causes of this shift: First, Ethereum gas fees were at times prohibitively expensive. This continues to be true at times, as was demonstrated most recently with the BAYC sale in early May 2022. Secondly, Ethereum is currently an energy-intensive Proof-of-Work protocol, and artists and platforms who have concerns about the negative environmental impact of these types of consensus mechanisms have been looking to alternative, Proof-of-Stake consensus blockchains like Tezos. 

PLATFORMS: 

Marketplace competition is heating up. Early in the year, Nifty Gateway dominated with over 60% share of primary music NFT revenue. By the end of the year, the leader (OpenSea) had only 28% share of the primary sales revenue we tracked, facing competition from many new platforms like Royal, Sound, and Nina.

We tracked more than 20 new Music-focused NFT platforms that launched in the second half of 2021 alone, and more still have launched in 2022. 

UTILITY:  

As these platforms launched with their own unique selling propositions, we found that artists continued to experiment with different forms of utility for NFTs, delivered either on-chain (i.e. built into an NFT’s smart contract, such as NFT revenue splits or on-chain music storage) or off-chain (i.e. delivered and experienced outside of blockchain-specific environments, such as in-person events, physical merch, and general community-building). 

On-chain Utilities

Music files 

The music itself is of course a clear starting place for providing utility within music NFTs. Since the NFT acts as a ledger and provides provable ownership of the token, it can attract collectors and fans by endowing a sense of personal connection and/or social status. Here the emotional value of the music is at the forefront of the primary sale and still there is some potential for future economic value, such as a secondary sale. This is what distinguishes an NFT from, say, a vinyl record: The smart contracts used to build NFTs allow creators the ability to offer fans more benefits directly over time, in a modular fashion. 

Music rights

Rights-bearing NFTs — which allow the purchaser to use the music or have access to tracks attached to music NFTs to produce remixes or other derivative works of their own — have been gaining momentum. Platforms like Arpeggi Labs and projects like omgkirby have taken various approaches in granting their NFT holders commercial rights (usually in full) to exploit the creative works embedded in the NFTs. 

Splits protocols

Embedding splits protocols into the NFT is primarily a utility for the music creators themselves, enabling streamlined revenue splits to the various people involved with the making of the music, and with trackable and verifiable credit attached. The rise of open splits protocols like 0xSplits and Slice have provided the modular building blocks for NFT platforms (such as Sound) to incorporate splits as platform features. 

Off-chain utilities 

On the other hand, we saw numerous examples of benefits being added to the value of an NFT purchase that requires management and fulfillment outside of the blockchain. They include methods of community-building, connecting to live experiences, merch, and philanthropic efforts. 

Community-building

Community-driven utilities that emerged from our research included online experiences like access to private Discord servers; direct artist-fan interactions like VIP meet-and-greets; offline experiences like first dibs on concert tickets; and governance rights such as multisig wallet signing privileges. Several startups like Unlock, Temple, Highlight, and Medallion have recently emerged with the explicit focus on helping artists launch NFT-gated online communities.

Live music

A recurring theme in a lot of music NFTs is exclusive access to in-person concert and festival experiences. Since much of the music NFT hype revolves around the concept of digital scarcity, the exclusive access to an in-person event flows well from this idea of rarity and exclusivity. We categorized these types of  benefits into pre-event, during-event, and after-event utilities. 

  • Pre-event includes free and/or VIP tickets; memorabilia such as commemorative art, photography, and lineup posters from prior shows. An example of this was the “golden ticket” package from Save Our Stages collection from NIVA. 
  • During-event utility includes backstage passes, token-gated VIP lounges, NFT galleries, and meet-and-greets, for example those offered by B Real (of Cypress Hill)
  • After event utilities include commemorative art, NFTs featuring show highlights, which we saw from artists like Don Diablo, Disco Biscuits, and the Dallas Symphony Orchestra
Physical + digital merch

In line with a common framing in the music industry of NFTs as “digital collectibles” are the physical and digital goods packaged with many of these NFT sales. In this category we found examples of back-catalog support such as archival footage and never-before-seen live sets; current release support like signed prints, CDs, and vinyl records; and future/pre-release support that provide access to exclusive previews via private communities or VIP chats (which also ties back to the community-building utility). 

Philanthropy

Philanthropy has persisted as one of the top use cases for music NFTs, as artists have to use the technology for good while addressing fan concerns about environmental and financial costs. We found examples of this utility through 2021 and into 2022 including: 

Challenges and further questions:

While 2021 was a banner year for music NFTs, this was only a snapshot in time of what we see to be continuous evolution of both the technology itself and how musical artists will be using them. 

In our report, we acknowledge and challenge that many changes are still imperative for music NFT technology to persist, including: 

  • The standardization of metadata in music NFTs across platforms. The current lack of standards makes it challenging to find, verify, and interpret drops on a manual, case-by-case basis and also creates a major discoverability pain point for artists and fans.
  • Transparency around the expectations vs reality of what the market is doing.  In particular, we found prior brand recognition and reach alone is an insufficient indicator for a successful NFT drop. Rather, other factors such as the diversity and thoughtfulness of NFT utility, or the strength and frequency of preexisting interactions within a fan community, may be more relevant predictors of success. 

More broadly, web3 in-and-of-itself is not a silver-bullet solution to the problems that may face artists and the music industry at large. What we see, though, is a powerful tool that thousands of artists, music brands, and platforms are using to explore new and creative use cases, quickly building and scaling on activities led by others before them. Many have benefited in both monetary and non-monetary ways, and have helped to onboard other artists, fans, and collectors into this new world.

At Water & Music, we will continue to track primary music NFT sales and also explore secondary sales and other forms of utility, to help artists and entrepreneurs navigate and demystify the ever-changing landscape as best we can in real time.

About Water & Music

Water & Music is a newsletter and research DAO on a mission to empower the music industry with the knowledge, network, and skills to do more innovative and progressive work with technology. We accomplish this through a highly social and cooperative approach to intelligence — building dynamic, collaborative systems for producing, exchanging, and distributing cutting-edge insights on emerging music/tech trends.

Our membership is home to 1,500+ professionals across music and entertainment, spanning everyone from indie artists and startup founders to marketers, investors, and C-Suite executives at major music companies. In January 2022, we launched our $STREAM governance token for rewarding contributors to our collaborative research and editorial projects, which is now in the hands of over 400 supporters in our community. What makes our work stand out is our relentless curiosity, our penchant for experimentation, our passion for interdisciplinary thinking, and our recognition of constructive critique as a driving force of progress in music, tech, and culture.



Updating the OpenSea Experience

Updated as of 6/17

Starting today, we’re excited to reveal the first steps in a design refresh aimed at improving everyone’s OpenSea experience. Our first step includes upgrades to the look and feel of profiles and collections. We’ll continue to roll out changes through the coming weeks, with the goal of putting more focus on our community’s content, simplifying the experience and making room for richer experiences for our OpenSea community. As part of these changes, we’re also working on upgrades to our technical stack to make everyone’s OpenSea experience quicker and more responsive.

New Profile Pages

Our goal is to give you more opportunities to highlight your favorite content and make it easier to navigate your collections, favorites and more.

The redesigned OpenSea Profile Page

New Collection Pages

We’ve also made changes to collections on OpenSea, making it easier to find and browse NFTs from your favorite creators. You can access any other NFTs a creator has made directly from their collection, making it easy to discover new content from creators you love.

The redesigned OpenSea Collection Page

This is just the start of a longer journey, and we’ll be cataloging all coming changes in this post as they roll out. We’d love to hear your feedback along the way, as we make OpenSea the best place for collectors to discover and purchase NFTs.

6/17 UPDATE

Introducing Featured Tab

Today, we’re launching the Featured Tab, a new addition that allows you to customize your profile on OpenSea. Under the Featured Tab, you can now organize, curate and showcase your NFTs to help express who you are, while helping visitors to your profile discover new NFTs and understand your tastes and interests. You can also showcase groups of NFTs from different categories directly on your profile.

The Featured Tab on your OpenSea Profile
Select NFTs from your profile to feature

You’ll also see updated Item Cards as you browse through NFTs on OpenSea. We’re excited to see how our community showcases and curates their NFTs with these new features!


Introducing Seaport Protocol

Today, we’re excited to announce Seaport, a brand new web3 marketplace protocol for safely and efficiently buying and selling NFTs. We’re incredibly excited to be building on top of it, and while we’ve created the first iteration of Seaport, this protocol is not just for OpenSea – but for all builders, creators and collectors of NFTs. The core smart contract is open source and inherently decentralized, with no contract owner, upgradeability, or other special privileges. 

Seaport Deep-Dive

Most current NFT marketplaces only allow for listings where one party agrees to supply an NFT and the other agrees to supply a payment token. Seaport takes a different approach: offerers can agree to supply a number of ETH / ERC20 / ERC721 / ERC1155 items — this is the “offer.” In order for that offer to be accepted, a number of items must be received by the recipients indicated by the offerer — this is the “consideration.”

Every Seaport listing consists of the same basic structure, including an improved EIP-712 signature payload that clearly outlines what can be spent and what will be received back by whom. However, there are a number of different ways that the fulfiller can choose to have listings fulfilled.

The most straightforward fulfillment option involves choosing a specific listing and creating an implied “mirror” of that listing, where the fulfiller receives all offer items and supplies all consideration items. Seaport also supports the option to fulfill any number of listings at once through a set of “fulfillments” — each fulfillment corresponds to a single item transfer and indicates a group of offer items that the submitter can match with corresponding consideration items. As long as each consideration item on each listing is fully credited after all fulfillments have been applied, the offerers can leverage their coincidence of wants and complete their transfers. This enables elimination of redundant transfers (which are generally the most gas-intensive component of the protocol) and allows for novel and efficient transactions.

Offerers may also optionally elect to designate both a “zone” and a “conduit” on any listing. Anyone can create new zones or deploy new conduits. A zone is an account (usually a contract) that performs additional validation prior to fulfillment, and that can cancel the listing on behalf of the offerer.

A conduit is a contract where offerers set token approvals. The owner of the conduit can add and remove “channels” for the conduit, and registered channels can instruct the conduit on how to transfer tokens. These two concepts enable extensibility and upgradeability in a fully “opt-in” fashion, giving creators, collectors, and platforms additional ability to make their own choices regarding how they utilize Seaport while maintaining broad composability with other listings on the protocol.

Each item on a listing can also optionally specify that some “criteria” be met in place of requiring a specific tokenId, enabling collection-level and trait-level offers. Furthermore, each item can specify a distinct “start amount” and “end amount” which are then compared to the current time as well as the start and end time of the listing to derive a current amount — this enables ascending and descending amount mechanics such as reverse dutch auctions.

Additionally, any listing can also opt to support partial fills of offered items, where fulfillers can elect to spend some portion of each of the total offered items and receive back an equivalent portion of each consideration item as long as the relative ratios remain unchanged based on the initial offer. Offerers can combine partial fills with criteria-based items to create standing offers to buy or sell multiple NFTs that all share a given characteristic.

Finally, the Seaport protocol supports “tipping” — a fulfiller may include additional consideration items when fulfilling a listing as long as they do not “tip” more than the original offer. This allows alternative interfaces to include their own fees, and can be combined with zones to support listings with dynamic amounts and recipients, as well as other novel applications like on-chain english auctions.

Open Source

This is only the beginning for Seaport. We built the initial version of the protocol to unlock use cases and optimizations that creators and collectors expect from a modern web3 marketplace. However, what we’ve really built is a foundation to empower the developer community to work together on this primitive. OpenSea does not control or operate the Seaport protocol — we will be just one, among many, building on top of this shared protocol. And so, as adoption grows and developers create new evolving use-cases, we are all responsible for keeping each other safe. We urge all interested smart contract developers to take a look and help optimize, simplify, and review potential areas of security concern.

The Seaport contracts emphasize efficiency and contain a significant amount of low-level assembly code. We’ve included a reference implementation that replicates the functionality of the optimized contract without any assembly code to enhance readability. We highly recommend contrasting the two implementations to familiarize yourself with the code (or even as an educational resource!) and encourage you to review and ask questions directly on the GitHub project — ongoing community engagement and participation is critical to the ongoing security and evolution of the protocol.

On that note, we are kicking off a two-week audit contest with code4rena with a $1 Million prize pool — the largest pool size in their history — starting today!

Audits

OpenZeppelin performed a security review of the Seaport protocol early in the development process, and Trail of Bits conducted an audit of the protocol near the completion of the current deployment. No major vulnerabilities were discovered as part of either review. The full report from Trail of Bits is available here.

Seaport would not be what it is today without the efforts of many talented external contributors and reviewers, including Dillon Kellar, transmissions11, samczsun, Riley Holterhus, brockelmore, and fiveoutofnine.

For more technical details and to start diving deep into the protocol, visit the GitHub repository and the interface documentation page.


Authenticity on OpenSea: Updates to Verification and Copymint Prevention

At OpenSea, we’re working around the clock to welcome more people into the world of NFTs. As the NFT ecosystem continues to evolve, imitation and plagiarism are growing issues that hinder trust in this space. While our efforts here are just the beginning, we’re excited to announce several changes aimed at improving authenticity on OpenSea. 

Our changes cover two areas:

  1. An updated account verification and collection badging system that broadens the number of creators eligible for verification.
  2. An automated system to help identify, remove, and prevent instances of “copymints” (copies of authentic NFT content).

Updated Approach to Verification

Account verification and collection badging on OpenSea are intended to help both creators and collectors by surfacing authentic accounts and content more prominently. 

But we’ve heard from our community that eligibility for verification and badging is opaque and the process is slow and cumbersome. So we’re rolling out four changes to the system:

  1. Switching to an invite-based system that broadens the number of creators eligible for verification. To start, any account with more than 100 ETH of collection volume will be invited to apply – we will continue broadening eligibility and invitations beyond this first tranche as we learn more.
  2. An updated collection badge process that allows verified accounts to request badging for a collection with significant interest or sales (starting at 100 ETH of volume or more, broadening eligibility soon). 
  3. A new streamlined, in-product experience that notifies eligible creators directly on their profile pages and guides them through the process of account verification and collection badging. 
  4. A dedicated customer support team that will respond to account verification and collection badging applications within 7 days.

Please note that these changes apply going forward, and projects that are currently verified will not lose their existing verification.

This is just the start, and OpenSea is committed to a goal where any authentic creator’s account can be verified while keeping scammers out of the system. Check out our verification blog post for more information about our updates. 

Reducing Copymints on OpenSea

Copymints are another problem that can sometimes make it difficult for the OpenSea community to find authentic content with confidence. At the same time, we’ve seen incredible communities come together through substantively additive remixes, and we want to encourage these creative universes to thrive.

We’re committed to threading the needle between removing copymints and giving space for those substantively additive remixes to prosper. So today, we’re announcing a two-part system to help with this goal:

  1. Image Recognition Technology – Our new copymint prevention system leverages computer-vision tech to scan all NFTs on OpenSea (including new mints). The system then matches these scans against a set of authentic collections, starting with some of the most copy-minted collections — we’ll look for flips, rotations & other permutations. We’ll expand this set over the coming months and constantly train our models to improve detection.
  2. Dedicated Human Review – Making this image recognition technology work requires dedicated “humans in the loop” who can review removal recommendations and train our models continuously.

With this system, our long-term goal is two-pronged: first, with help from our community, to eliminate all existing copymints on OpenSea; and second, to help prevent new copymints from appearing in the first place. We’ve already started the process of delisting identified copymint collections, and we’ll scale up our removal process in phases over the next several weeks. 

We consider these programs and products collectively as OpenSea’s lighthouse – helping protect creators and collectors and ensuring our community can navigate the world of NFTs confidently. Together, we believe these changes simultaneously improve trust in the NFT ecosystem by elevating authentic content and removing plagiarized works.

Our work here is ongoing and we still have more to do; but we’re committed to continuous improvements and welcome the feedback of our community on these efforts.


We’re Improving the OpenSea Verification Process

As the NFT ecosystem continues to evolve, imitation and plagiarism are growing issues that hinder trust in this space; in a recent blog post, we outlined a number of changes aimed at improving authenticity on OpenSea and increasing trust for our community. 

Our changes cover 2 areas:

  1. An updated account verification and collection badging system that also broadens the number of creators eligible for verification.
  2. An automated system to identify, remove, and prevent instances of “copymints” (copies of authentic NFT content).

In this post, we will dive deeper into the updated account verification and collection badging system and give insight into our verification plans moving forward.

Account Verification and Collection Badging on OpenSea

Account verification and collection badging on OpenSea are intended to help both creators and collectors by surfacing authentic accounts and content more prominently.

Verified accounts are denoted by the blue checkmark badge

But we’ve heard from our community that eligibility for verification and badging is opaque and the process is slow and cumbersome. So we’re rolling out four changes to improve the system:

  • An invite-based account verification system, with broader eligibility criteria
  • An updated collection badge
  • A new streamlined, in-product notification and application experience
  • A dedicated customer support team for verification and badging, with response within 7 days

Please note that while many parts of this process are improving, projects that are currently verified will not lose their existing verification.

The sections below will go into more detail about each of these changes.

Invite-based account verification

To start, any account that owns a collection with at least 100 ETH of volume will be invited to apply for verification. We plan to broaden eligibility soon and introduce additional factors, like presence and activity on Twitter and Discord, when considering who should be eligible for verification. 

This is just the start – we are committed to a future where any authentic creator’s account can be verified, while keeping scammers out of the system.

Updated collection badges

Collection badges are used to identify collections that are owned by a verified account AND have significant interest or sales. Initially, any collection with at least 100 ETH of volume will be eligible for badging. Similar to account verification, we plan to broaden eligibility criteria for collection badging soon.

Details on collection badging

In-product experience

Users eligible for account verification will see a banner at the top of their OpenSea account page.

Banner on the account page visible to accounts eligible for verification

When users click on the banner, they’ll be directed to the “Profile Settings” page which lays out the four requirements for account verification:

  • A profile image
  • A username
  • A verified email address
  • A connected Twitter account (Learn more)

Once these requirements are met, eligible users can submit an account verification request.

Account verification checklist on the Account Settings page

OpenSea will contact verified creators with an invitation to badge their collection via the email address they provided. These creators will be able to request badging for collections with at least 100 ETH of volume from the “Edit My Collection” page, and will be asked to:

  • Set a collection name, logo image, and banner image
  • Connect the collection’s Twitter account (Learn more)

Once these requirements are met, creators of eligible collections can submit a badging request.

Collection badging checklist on the Edit My Collection page

A dedicated team of customer support specialists will respond to all account verification and collection badging requests within seven days. 

Final thoughts

Today’s announcement is another step in making a more trusted and authentic OpenSea experience. For those who don’t yet meet the requirements, please know that we’re working on your behalf to expand eligibility. We’re committed to a goal where any authentic creator’s account can be verified while keeping scammers out of the system – and we know that we have more work to do to reach this goal.
In the meantime, please see our help center or contact us with any questions.


How to stay safe on Discord and Social Media

At OpenSea, we’re constantly taking steps to improve trust and safety in the NFT space and ensure users feel confident connecting with us in all of our community channels. However, safety in web3 also requires users to stay vigilant and protect themselves on Discord and other third-party community platforms.

How to stay safe on Discord

In OpenSea’s Discord server, you’ll find several channels where you can hang out and discuss the latest NFT trends with your fellow community members – and we encourage you to engage! That said, when seeking help from OpenSea support reps, we recommend reaching us through our official OpenSea support channel, support.opensea.io.

When engaging and asking questions of the broader community on Discord, always be cautious. All OpenSea staff and official Discord moderators can be identified by a green checkmark ✅ in front of their username (see below).

All OpenSea staff and Discord moderators have a green checkmark in front of their username.

And again, for official customer support, please contact our 24/7 support team at support.opensea.io.

As a general reminder, OpenSea staff will NEVER:

  • ❌ Send DMs to you first.
  • ❌ Ask for your crypto wallet seed phrase.
  • ❌ Ask to see your crypto wallet QR code.
  • ❌ Ask you to sign any message with your wallet or send you to a link that asks you to sign a message with your wallet.
  • ❌ Ask you to verify your identity in any capacity, eg. no links to an external website to login to.
  • ❌ Invite you to a different Discord server.
  • ❌ Ask you to transfer cryptocurrencies or NFTs on their behalf.
  • ❌ Ask you to click on any links besides support.opensea.io, twitter.com/opensea and twitter.com/opensea_support.
  • ❌ Ask you to scan a QR code for collection verification or for technical support.
An example of a suspicious Discord DM request.

If you have received one of the requests listed above, it is likely a suspicious request. Please report the sender to Discord.

Safety First: Best Practices

Below you’ll find a series of operational security (opsec) best practices that users of all backgrounds should maintain on a regular basis. With bad actors constantly on the move – even the most experienced web3 users can fall victim to scams and phishing attempts across the community ecosystem. 

1) Avoid DMs

We recommend that you block DMs for Discord. To do so:

  1. Right-click on the server logo.
  2. Click on “Privacy Settings”
  3. Disable DMs.
  4. If you want to take extra precautions, you can disable all direct messages by default in servers.
You can disable all direct messages by default in Discord settings.

In general, most scam and phishing attempts begin through DMs. Be suspicious of any requests from strangers and always vet them. This applies to other chat apps frequently used in the web3 community like Telegram and Signal.

2) Be cautious of friend requests

Most popular Discord servers in web3 will have DM’s turned off by default. In this situation, the only way DM’s can take place is if users are already connected through an existing conversation, or if another member (nefarious or not) issues a friend request. 

Pending: Where friend requests can be viewed, accepted and deleted.

If you need to connect over DMs, it’s best to vet and confirm if the other party is who they say they are. You can screenshot their request and confirm its authenticity directly with that party over Twitter or email. 

3) Don’t click on unfamiliar links or download unknown files

This tip is as old as the internet but just as relevant in web3.

Whether in Discord or elsewhere, avoid clicking on unfamiliar links and downloading files as they may have malicious scripts which will compromise your account (or worse, your device). Be highly suspicious of any request that requires you to install or run any program. Even an action as simple as installing a bookmark may compromise your Discord account. 

4) Use timestamp-based Two-Factor Authentication (2FA)

Discord offers SMS as a method of 2FA. However, receiving 2FA via SMS is a possible risk vector if your phone’s SIM card has been compromised. It’s best to use a timestamp-based method of 2FA with apps like Google Authenticator. You can toggle this in your Discord settings.

Make sure to enable timestamp based 2FA with an app like Google Authenticator or Authy.

In general, you should apply timestamp-based 2FA to all of your main web3 apps, if possible.

5) Use multiple accounts & devices 

Discord recently released a new feature that lets you manage multiple Discord accounts on one device. If you are a member of different web3 communities, using dedicated accounts for specific servers is an effective way to reduce risk. One step further is to use a dedicated device for Discord. For example, you can install Discord on an older smartphone and log in to your Discord account via your browser.

You can now manage multiple accounts on Discord. Right click on your profile photo to switch accounts.

What should I do if I have been compromised?

If your Discord account has been affected, please contact Discord and create a new account.

If you think you may have clicked a link to a malicious website or scanned a malicious QR code, we recommend installing a new wallet, and moving your items to it ASAP

Please contact OpenSea at support.opensea.io for official customer support.

If you see something suspicious, please let us know.