NFT Market Stops Most Transactions

NFT Market Stops Most Transactions

The platform that sold the NFT of Jack Dorsey's first tweet for $2.9 million has halted most transactions because people are selling content tokens that don't belong to them, according to the platform's founder, who called this a "fundamental problem" in the fast-growing country. digital asset market.

Sales of non-exchangeable tokens, or NFTs, rise to around $25 billion by 2021, leaving many confused as to why so much money is being spent on products that don't exist physically and can be viewed online for free.

An NFT is a crypto asset that serves as a record of ownership for digital content such as images, videos or text. Anyone can create, or "print", NFTs, and ownership of tokens generally does not imply ownership of the underlying asset.

Fraud, counterfeiting, and "money laundering" have become a growing routine.

When Cent sold the former Twitter CEO's tweets as NFTs in March, it was one of the first documented multimillion-dollar NFT transactions. However, starting February 6, it will no longer allow buying and selling, according to CEO and co-founder Cameron Hejazi.

"There's a spectrum of activity that shouldn't happen - like, legally," explains Hejazi.

While Cent marketplace "beta.cent.co" has stopped selling NFTs, the section devoted to selling NFT tweets, dubbed "Valuable Items," remains operational.

Hejazi identified three main problems: individuals selling illegal copies of other NFTs, people creating NFTs of content that is not theirs, and people selling NFT sets that impersonate security.
This vulnerability, he argues, is "rampant," with individuals "printing, printing, and printing counterfeit digital assets."

"It keeps happening. We're going to ban accounts that behave inappropriately, but it looks like we're playing a game of whack-a-mole... Every time we ban one, another, or three more will appear."

Money for money

As large companies compete with the so-called "metaverse," or Web3, such issues may become more prominent. Coca-Cola (CCEP) and luxury brand Gucci are among the companies selling NFT, while YouTube has said it will investigate NFT's features.

While Cent, with 150,000 members and earnings "in the millions", is a relatively small NFT platform, Hejazi claims that the problem of fraud and illicit materials is widespread in the business.

"I believe this is a very basic problem with Web3," he explained.

The largest NFT marketplace, OpenSea, which is valued at $13.3 billion after its most recent venture investment round, stated last month that more than 80% of the NFT generated for free on its platform is "plagiarized works, fake collectibles, and spam."

OpenSea attempted to limit the number of NFTs users could print for free, but reversed its decision in response to user backlash, the business claimed in a Twitter thread, adding that it was "working through a number of options" to avoid "bad actors" while encouraging innovators.

"It is against our policy to offer NFT with plagiarized material," claims an OpenSea representative.
"We are working around the clock to deliver goods, add features, and refine our processes to meet the demands of the times."

The decentralized feature of blockchain technology, which allows users to generate and trade digital assets without a central authority overseeing activity, attracts a large number of NFT enthusiasts.

However, Hejazi stated that his organization is committed to protecting content producers and could implement centralized control as a short-term solution to reopening the market before researching decentralized options.

Cent started to get a feel for what was happening in the NFT market after Dorsey's NFT transaction.

"We found that a lot of it was really after the money."