By Nathan Ferguson
Spiking problems dealing with the counterfeit NFTs’ minting have compelled the prominent NFT platform named Cent to terminate some activities. The venue (the foundation of which was laid in 2017) started its operations being a social network as well as an informal place for creative research. In 2020, the group additionally issued an NFT venue named Valuables for minting as well as the auction of iconic Twitter posts. The initial tweet of Jack Dorsey got traded for nearly 2.9M over the respective platform in the previous year’s March.
On 6th February, the company stopped the trading of NFTs because of a burden of operations that were not expected. The Cent’s co-founder named Cameron Hejazi stated that the participants of this market have an inclination towards voicing caution for the purchasers however the significant thing is to protect the creators from the people who might abuse them or steal their work along with protecting the purchasers from the likely fraud.
It was mentioned by Reuters that, according to Hejazi, the matter was consisting of three factors. In the first place, the trading of uncertified NFT copies, the trading the NFTs of the content that is stolen as the second thing, and the trading of those NFT series that are similar to securities as the third point, are included in this issue. In the time of a significant rise in money-laundering apprehensions, the initial NFT seizure took place in the United Kingdom where an alleged VAT scam case attracted criticism even from NASA.
In this way, the start of this year was not much smooth in the sector of NFTs. An NFT-based play-to-earn game (that runs on the blockchain) Kryptomon’s CEO – Umberto Canessa Cerchi – pointed out that even though the mounting reputational concerns are bothering the industry, it is not sufficient to delay the earliest NFT purchasers. In his words, a majority of those buyers will move toward unknowingly buying fake NFTs, and will categorize the entire NFTs as fraud, which would be harmful to the whole industry.
Cerchi disclosed that the laws about consumer protection may bring some improvement in this respect and an additional awareness would assist the industry from being victimized by fraud. Brand Strategist as well as a partner of the initial venue of NFT sports “Blockasset.co” – Phil Gunwhy – is confident that the NFT sector’s future is promising under adequate regulation. The issue of fake listings also takes account of the reason why platforms do not control the presented listings.