{"id":405813,"date":"2022-02-15T13:03:13","date_gmt":"2022-02-15T10:03:13","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/counterfeit-nfts-result-in-marketplace-shutdown-experts-weigh-in\/"},"modified":"2022-02-15T13:03:13","modified_gmt":"2022-02-15T10:03:13","slug":"counterfeit-nfts-result-in-marketplace-shutdown-experts-weigh-in","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/counterfeit-nfts-result-in-marketplace-shutdown-experts-weigh-in\/","title":{"rendered":"# Counterfeit NFTs result in marketplace shutdown: Experts weigh in"},"content":{"rendered":"

“# Counterfeit NFTs result in marketplace shutdown: Experts weigh in <\/strong>”
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\u201cRampant\u201d issues relating to minting counterfeit nonfungible tokens, or NFTs, have forced popular platform Cent to halt some operations.<\/p>\n

Founded in 2017, Cent kicked off as a \u201csocial<\/a> network and informal platform for creative experimentation.\u201d In 2020, the team also launched an NFT platform called Valuables to mint and auction iconic tweets. <\/p>\n

Jack Dorsey\u2019s first tweet<\/a>, \u201cjust setting up my twttr,\u201d sold for $2.9 million on the platform in March last year. On February 6th, the platform ceased NFT trading due to \u201ca spectrum of activity\u201d that “shouldn\u2019t be happ<\/a>ening.”<\/p>\n

Cameron Hejazi, co-founder of Cent told Cointelegraph:<\/p>\n

\u201cPeople in this space tend to cry ‘caveat emptor’ or ‘buyer beware’ but protecting creators from those who might steal or abuse their work \u2014 and protecting buyers from potential fraud\u2014 is very important.\u201d<\/p><\/blockquote>\n

Hejazi told Reuters<\/a> that the issue was threefold. Firstly, the sale of unauthorized NFT copies, second, the sale of stolen content converted into NFTs, and finally, the sale of NFT sets that resemble securities.<\/p>\n

Amidst NFT money-laundering concerns, the first NFT seizure in a UK VAT fraud case and even NASA wading in with its criticisms of the space, NFTs have had a rough start in 2022. <\/p>\n

Umberto Canessa Cerchi, CEO of Kryptomon, an NFT Play-To-Earn blockchain game<\/a> shared that while growing reputational concerns are a concern for the industry, it is not enough to put off potential first time NFT buyers. He told Cointelegraph that among first-time buyers:<\/p>\n

\u201cMost of them\u00a0will end up buying a fake, and then when they find out about it, they will declare all NFTs ‘scams,’ and that’s bad for the industry.\u201d<\/p><\/blockquote>\n

Cerchi shared that \u201cconsumer protection laws\u201d may improve the situation and better education would \u201cprevent the industry from becoming a victim of fraud.\u201d<\/p>\n

Related:\u00a0YouTube sees \u2018incredible potential\u2019 in NFT video sales despite backlash threat<\/em><\/strong><\/p>\n

Phil Gunwhy, Partner and Brand Strategist at Blockasset.co, the first athlete-verified NFT sports platform, is optimistic about the future for NFTs and regulation. He told Cointelegraph:<\/p>\n

The problem with fake listings is correlated directly to how marketplaces do not regulate the listings that appear. There are many marketplaces that do now allow users to upload and create NFTs on the fly and instead only allow verified listings.\u201d<\/p><\/blockquote>\n

He added that \u201cdeveloping relevant regulations\u201d could be challenging in the short term, but there is \u201can expectation that this will trickle down to the NFT ecosystem.\u201d\u00a0<\/p>\n

As the U.S. Treasury takes aim at money laundering and NFTs, there could be further scrutiny to come. Ultimately, Hejazi hopes to \u201copen an industrywide conversation around this issue\u201d to root out offenders.\u00a0<\/p>\n