More

    NFT marketplace Cent shuts down their Operations Due to Fakes, Wash-Trading.

    NFT craze is spreading across the whole world at a rapid speed. Almost all the people who have been active on the internet now know about the term NFT. Many people are currently joining the space, and due to this, this space is becoming bigger and better every day. Its sales have reached almost $20 Million last year and are expected to double this year.

    Cent raises $3M to build NFTs for creators | VentureBeat

    However, it is essential to note that there are a lot of scams going on in the NFT space also. Many people don’t know much about this space, but few try to make money by scamming others. Due to these ongoing scams, the NFT market, which sold NFT of Jack Dorsan’s first tweet for a whopping $2.9 Million, has halted transactions and shut their operation due to fakes and wash trading. 

    Cent Founder address this issue

    Cent founder Cameron Hejazi has called this a fundamental problem in this fast-growing digital world. He said that people were selling tokens that didn’t belong to them. He has highlighted three main problems due to which they have stopped operations on their platform. 

    1. People are selling unauthorized copies of other NFTs.
    2. Few people are making the content of NFTs, which doesn’t belong to them.
    3. They are also selling sets of NFTs, which resemble security.

    He also said that this came to his notice last year. However, they were banning such accounts, which was doing this plagiarism. But they were too many. He added that it was happening. It was like we were playing a game of whack-a-mole in which we were banning one such account, and on another day, we found another report that showed up on their platform. 

    Cent, the platform that Jack Dorsey used to sell his first tweet as an NFT,  raises $3M | TechCrunch

    Cent came into the limelight and became one of the first known million-dollar NFT sales when Jack Dorsan’s first tweet was sold on their platform. However, Cent is not that big platform like OpenSea and has only 150,000 users. 

    It is important to note that this problem is on the Cent platform and in the whole NFT space. About 90% of the NFT minted on OpenSea (the world’s largest marketplace for NFT) are plagiarised work, fake collections, and spam. However, OpenSea tried to control this, but they failed because many fakes are much more. Thye also attempted to limit the number of NFTs a user can mint, but after getting massive backlash from the NFT community, they reversed their decision. 

    OpenSea 

    OpenSea's Monthly NFT Trade Volume Exceeds $3.5 Billion in New All-Time  High | Technology News

    This is not only the case with OpenSea or Cent. Almost all the other platforms face the same issue, and because this marketplace doesn’t have much regulation, scammers are evading the loophole. All platforms are deliberately working to stop it but cannot control this. Hejazi said his company was keen on protecting content-creators, and that’s why they have taken short-term measures to prevent this exploring decentralized solutions for this significant issue. He thinks that he realized that a lot of it is just money making money. 

    Hence, it would be interesting to see how the Cent platform will tackle this issue and what’s update it is going to make in their platform to minimize this issue. If they could tackle this problem, it would be a good achievement for all the NFT community. 

    Stay in the Loop

    Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

    Latest stories

    You might also like...