Davin Finzer, one of the most renowned figures in the NFT realm of the crypto world, has gone through various ups and downs in his entire blockchain career. He is primarily known for OpenSea, an NFT network that was featured in Time magazine’s list of the 100 most influential companies of the year,
This article will cover Devin Finzer’s entire career, from his education days to his web3 career. We will also cover his conflicts with the SEC (Securities and Exchange Commission) and provide a timeline of the ups and downs of OpenSea. We also have the latest updates regarding OpenSea’s revival.
Who is Devin Finzer? Personal & Education Details
Devin Finzer was born to a San Francisco-based family in 1990. His father was a software engineer, and his mother was a physician. After attending Miramonte High School in Orinda, he secured a bachelor’s degree in computer science and mathematics from Brown University in 2013.
From Brown, he met Dylan Field the future founder of Figma, and co-created a university-based search engine called CourseKick where users can find courses and examinations. Also, Finzer was an intern at Wikimedia, Google Cloud, and Flipboard.
The Rise & Fall of Devin Finzer’s OpenSea: A Timeline
- 2014: Finzer took his first job as a software engineer at Pinterest rightly after graduation. Then he started developing his interest in blockchain technology and web3 environment.
- 2017: Motivated by the success of CryptoKitties NFTs, Devin Finzer and his friend Alex Atallah started working on an NFT platform. They founded OpenSea and expanded the digital ownership marketplace.
- 2018: As a startup, OpenSea obtained $2 million from various funders and launched its NFT marketplace to the mainnet, attracting a huge number of artists and collectors.
- 2021: After Beeple’s $69 million NFT sale at Christie’s auction platform, the niche got mainstream attention. OpenSea raised $23 million from Andreessen Horowitz and the revenue started soaring. OpenSea was valued at $1.5 billion at the peak of the year’s NFT frenzy.
- 2022: Following a $300 million investment round, OpenSea reaches its maximum valuation of $13.3 billion. However, it started to fall gradually. In late 2022, OpenSea got various rivals such as Blur, and problems with the site’s trustworthiness increased because of insider trading and certain stolen NFTs.
- 2023: OpenSea’s earnings were impacted when the entire NFT industry witnessed a sharp decline in sales. When NFT sales continued to fall, layoffs took place, harming its reputation. Finally, the SEC intensified the decline by charging various cases.
The Conflicts With SEC
OpenSea was on the radar of the SEC when it was featured in the Time magazine itself. When Devin Finzer was on vacation with his partner Yu-Chi Kuo amid the turmoil surrounding OpenSea’s decline, the SEC charged its two NFT projects for issuing unregistered securities during this period. Impact Theory and Stoner Cats 2 LLC were fined $6.1 million and $1 million, respectively, as a result of these lawsuits.
The major issue was regarding the identity of NFTs, where the SEC considers them as securities and OpenSea considers them as creative assets. If the SEC classifies NFTs as securities, certain rules regarding registration, disclosures, and reporting, would have to be followed by NFT platforms and developers. It can be an expensive and time-consuming process.
The NFT market’s accessibility will be restricted to accredited investors or those who satisfy particular financial requirements of the SEC, potentially detaching it from the global creators. Citing safeguards provided by Section 230 of the Communications Decency Act, OpenSea’s legal team contended that NFTs are not securities. The network insisted that it is not a securities exchange but rather a platform for creative assets.
Creative Assets or Securities? Devin Finzer’s Stand on NFTs
In blockchain communities, NFTs are usually defined as distinct digital objects that signify ownership of artwork, collectibles, or in-game assets. Their worth is not based on financial investment or returns, but rather on inventiveness, usefulness, or cultural relevance.
Under the Howey Test, the classification of NFTs has its complexities, where the artistic involvement, efforts of others, investment, and profits should be considered. According to the SEC, some NFTs, like those in OpenSea, are created with the hope of making money through speculative trading and resale, which makes them securities.
Devin Finzer responded to the SEC’s stand by saying that classifying NFTs as securities is a “sweeping move against creators and artists” that harms innovation and violates creators’ rights. He emphasized the freedom of artists and argued that the activities of OpenSea are shielded by laws about free speech and intermediary liability and that it does not operate as a securities broker or exchange.
Is OpenSea Reinventing? When Will Opensea 2.0 Arrive?
The case between SEC and Devin Finzer is still going on, and the expert opinions favor Finzer mainly because of the changes in the U.S. political landscape. After the winning of Donald Trump, the SEC is expected to have a pro-crypto chairman, igniting hopes in the revival of OpenSea and the entire NFT market.
Devin Finzer recently announced that OpenSea 2.0 will arrive soon, and it is being rebuilt “from the ground up”. No more details are revealed but there are speculations that it will launch an airdrop campaign soon.
Final Thoughts
Devin Finzer is one of the most influential figures in the NFT niche as well as the whole web3 environment. We can expect that the issues with SEC will be solved soon and the OpenSea will arrive with an advanced interface capable of attracting talented creators and rich investors.
To know more about Devin Finzer and his activities, you can reach him on X (Twitter). Also, he participates in various blockchain-based events and other public talks. Web3 enthusiasts interested in NFTs can follow him for inspiration, and we can expect the arrival of OpenSea 2.0 in late December 2024.
