The NFT Platform, which is most known for minting Jack Dorsey’s first tweet, has ceased operations because to concerns about counterfeiting and illegal conduct.
Cent has had to cease some activities due to “rampant” concerns linked to minting counterfeit nonfungible tokens, or NFTs.
Cent began as a “social network and informal venue for creative experimentation” in 2017. In 2020, the team will also develop Valuables, an NFT platform that will mint and auction iconic tweets.
In March of last year, Jack Dorsey’s first tweet, “just setting up my twttr,” sold for $2.9 million on the site. The platform halted NFT trading on February 6th owing to “a spectrum of activity” that “shouldn’t be happening.”
Cent co-founder Cameron Hejazi told:
“People in this arena like to say ‘caveat emptor,’ or ‘buyer beware,’ but safeguarding creators from people who might steal or abuse their work — and consumers from potential fraud — is critical.”
According to Hejazi, the problem was threefold. The first is the sale of unlawful NFT copies; the second is the sale of stolen content converted to NFTs; and the third is the sale of NFT sets that look like securities.
NFTs have had a rocky start in 2022, with money-laundering issues, the first NFT seizure in a UK VAT fraud case, and even NASA weighing in with its criticisms of the space.
While growing reputational problems are a concern for the industry, Umberto Canessa Cerchi, CEO of Kryptomon, an NFT Play-To-Earn blockchain game, said that it is not enough to deter potential first-time NFT purchasers. among first-time buyers:
“Most of them will end up buying a fake and then declaring all NFTs’scams’ when they find out, which is damaging for the business.”
“Consumer protection laws” may help, and better education would “avoid the industry from becoming a victim of fraud,” according to Cerchi.
Despite the prospect of criticism, YouTube sees ‘great potential’ in NFT video sales.
Phil Gunwhy, Partner and Brand Strategist at Blockasset.co, the first athlete-verified NFT sports platform, is bullish on NFTs and regulation’s future. he stated:
The issue of fraudulent listings is directly tied to marketplaces’ failure to regulate the listings that appear. Many marketplaces now only allow verified listings and no longer allow users to upload and produce NFTs on the fly.”
He went on to say that while “creating applicable rules” could be difficult in the short term, “an anticipation that this will trickle down to the NFT ecosystem” is expected.
As the US Treasury focuses on money laundering and non-financial transactions, there may be more scrutiny in the future. Hejazi’s ultimate goal is to “create an industrywide conversation around this issue” in order to identify and prosecute criminals.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.