OpenSea (OS2) Is Launching a Token (SEA), Slashing Fees, and Embracing Cross-Chain Trading as Part of Its Ambitious Overhaul

The OpenSea Foundation has officially announced the upcoming launch of the SEA token, a long-speculated digital asset designed to reward the marketplace’s most

OpenSea is introducing the SEA token, a highly anticipated digital asset designed to reward loyal users, as part of a broader effort to strengthen its presence in the NFT ecosystem. The token will be airdropped to select users, and U.S. traders will be eligible to participate without the need for know your customer (KYC) verification.

The launch of the SEA token fulfills years of speculation among OpenSea users, especially during the NFT market's peak in 2021 and 2022. Despite the trend of competitors like Blur and Magic Eden offering token incentives to attract traders, OpenSea remained hesitant.

However, the registration of the OpenSea Foundation in the Cayman Islands in December sparked rumors of an impending token launch. The Cayman Islands are frequently used as a jurisdiction for crypto exchanges and projects preparing to launch tokens.

Now, with the confirmation of the SEA token, OpenSea is also introducing support for over a dozen blockchains, fungible token trading, an XP rewards system, and an overhauled user experience as part of its sweeping OS2 relaunch.

According to OpenSea co-founder and CEO Devin Finzer, the decision to launch the SEA token is part of a larger strategy to redefine OpenSea's identity and role in Web3.

"We took a step back with this rebuild and said: We want to build long-term for our community. We want to be much more crypto-native,” Finzer told Decrypt. "We want to really have a platform that feels and lives and breathes Web3, and having a token as part of that felt like the right thing to do for our users and the participants of the NFT ecosystem over the long haul.”

The SEA token is designed to foster community engagement, similar to past crypto airdrops. However, Finzer acknowledges the challenge: while token rewards can generate short-term excitement, many past airdrops—like Blur's—have struggled to maintain long-term value.

"If you don’t have a product that people love, and you don’t have a real community, then a token is going to be a short-term thing,” Finzer added. “But if you continue investing in the product and make the token a key ingredient in the future of the platform, then you can take a much more long-term approach.”

OpenSea once dominated the NFT market, commanding the majority of Ethereum-based NFT trading volume. In early 2022, the company soared to a $13.3 billion valuation following massive venture capital investments.

However, as NFT demand waned and competitors emerged, OpenSea lost ground. According to Tiexo data, OpenSea's market share for Ethereum NFT trading has shrunk to around 30%, while Blur has surged ahead with 62% over the past six months.

Faced with this existential crisis, OpenSea made a conscious pivot back to its crypto-native roots, embracing a leaner Web3 team and refocusing on product innovation. This shift also comes after OpenSea laid off 56% of its workforce following a Wells Notice from the SEC in August 2024, which raised concerns over potential unregistered securities on the platform.

"In the bull market, we became far too Web2,” Finzer admitted. “Now we’re really leaning into a small, lean Web3, crypto-native team as we roll out this new product.”

This transformation aligns with a broader trend among Web3-native brands like Yuga Labs (the creators of Bored Ape Yacht Club) and Doodles, which have also sought to rekindle their communities by shedding the corporate polish that came with rapid expansion.

With OS2, OpenSea isn't just revamping its marketplace—it's evolving into a broader trading platform that supports fungible tokens alongside NFTs. Finzer describes it as a “reimagining of every surface of OpenSea,” built with the intention of uniting all kinds of tokenized assets in one place.

The upgrade introduces cross-chain NFT purchases, allowing users to buy a Solana NFT using a non-Solana payment method. OpenSea is also aggressively cutting fees: marketplace fees are dropping to 0.