According to Reuters, the NFT platform Cent, through which Twitter founder Jack Dorsey sold his first tweet in March 2021, has suspended most of the transactions. As Cent founder Cameron Hejazi explains, this is because people were selling tokens for content they didn't own. He called it a fundamental problem in the rapidly growing digital content market.
Cent banned the purchase and sale of tokens on February 6th. As Hijazi pointed out, there is a whole range of activities going on that shouldn't happen at all. He identified three types of problems:
people selling unauthorized copies of other NFTs;
people creating NFT content that does not belong to them;
people selling NFT kits that resemble securities.
Hijazi points out that people continue to mint counterfeit tokens, and these problems occur almost everywhere. The platform could block the accounts of violators, but this, according to the head of Cent, will be similar to the game Mole Smash (Hit the mole). After each blocking, a new account will appear, or even several.
Cent has about 150 thousand users. Its income relative to the entire market is small, but Hijazi notes that the NFT problems listed apply to the entire area. His company is interested in protecting content creators and may introduce centralized controls as a short-term measure to reopen sales before exploring decentralized solutions.
In 2021, NFT sales rose to $25 billion. Anyone can create an NFT, but owning a token does not confer ownership of the original product, such as paintings from an art gallery or drawings by authors. News of token scams has become more commonplace than out of the ordinary. Some online merchants are outright stating that NFTs are a scam and criticize people's ambitions for tokens.
bbabo.Net