NFT Marketplace Cent That Sold Jack Dorsey’s First Tweet Shutters Operation Due to Fakes, Wash-Trading

[ad_1]

The platform, which sold NFTs for $2.9 million (about Rs 22 crore) from Jack Dorsey’s first tweet, has halted transactions because people were selling tokens of content that did not belong to them, with its founder calling it a “fundamental problem”. Fast growing digital asset market. NFTs, or non-fungible token sales, soared to nearly $25 billion in 2021, leaving many wondering why so much money is being spent on items that don’t physically exist. and anyone can do it. Watch online for free.

NFT Crypto assets are assets that record the ownership of a digital file such as an image, video or text. Anyone can create an NFT, or “mint”, and ownership of the token does not usually confer ownership of the underlying commodity.

Reports of scams, forgery and “wash trading” have become common.

US-based Cent executed one of the first known million-dollar NFT sales when it sold The former Twitter CEO’s tweet masqueraded as NFT last March. But since February 6, it has stopped allowing buying and selling, CEO and co-founder Cameron Hejazi told Reuters.

“There’s a spectrum of activity that is happening that basically shouldn’t happen — eg, legally,” Hejazi said.

Hejazi highlights three main problems: people selling unauthorized copies of other NFTs, people making NFTs of material that doesn’t belong to them, and people selling sets of NFTs that resemble security.

He added that these issues were “massive”, with users “mining and mining counterfeit digital assets.”

“It kept happening. We would ban abusive accounts, but it was like we were playing the weirdo game… Every time we ban one, another comes out, or three more come out. Huh. “

“Money Behind Money”

Such problems may become more noticeable as major brands tend to “run towards”metaverse“, or web3, Coca-Cola and luxury brand Gucci are among the companies selling NFTs, while youtube Said it will explore NFT features.

While Cent, with 150,000 users and revenue “in the millions,” is a relatively small NFT platform, Hejazi said the issue of counterfeit and illegal content exists throughout the industry.

“I think this is a very fundamental problem with Web3,” he said.

Largest NFT Marketplace, open seaThe venture, valued at $13.3 billion (about Rs 1,00,600 crore) after its latest round of funding, said last month that more than 80% of NFTs on its platform were free of “plagiarism, fake collections and spam”.

OpenC tried to limit the number of NFTs that a user could mint for free, but then reversed the decision after feedback from users, the company said in a Twitter thread, saying it was “working through several solutions”. was doing” “to stop bad actors” while supporting the producers.

OpenC did not immediately respond to a Reuters request for comment.

For many NFT-enthusiasts, the decentralized nature of blockchain The technology is lucrative, allowing users to create and trade digital assets without a central authority controlling the activity.

But Hejazi said his company was keen to protect content-creators, and may offer centralized controls as a short-term measure to reopen the market, before exploring decentralized solutions.

After the sale of the Dorsey NFT, Saint began to understand what was happening in the NFT markets.

“We realized that a lot of it is just chasing money.”
© Thomson Reuters 2021


Interested in cryptocurrency? We Discuss Cryptocurrency with WazirX CEO Nischal Shetty and WeekendInvesting Founder Alok Jain of class, Gadgets 360 Podcast. available on orbital Apple Podcasts, google podcasts, Spotify, amazon music And wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, is not legal tender and is subject to market risks. The information in this article is not intended to be financial advice, business advice or any kind of advice or recommendation given or endorsed by NDTV. NDTV shall not be liable for any loss arising out of any investment based on any alleged recommendation, forecast or any other information contained in the article.

,

[ad_2]