Marketplaces Begin Suspending NFT Sales
Author: Rachel Martin
Image: Sergey Zolkin CC0 https://unsplash.com/photos/_UeY8aTI6d0
The United States-based platform, Cent, made headlines in the past for being one of the first marketplaces to make a million-dollar sale when last March they sold the former Twitter CEO Jack Dorsey’s first tweet as an NFT. Now, they are in the headlines again for quite the opposite reason: they are stopping the buying and selling of NFTs on their platform.
CEO and co-founder of Cent, Cameron Hejazi, has underlined the main issues with selling NFTs on the platform, including people selling unauthorized copies of other NFTs or making NFTs of content which does not belong to them. Hejazi stated that these issues were so rampant that every time they banned one account, another would emerge.
While Cent has revenue in the millions, it is on the smaller end of NFT platforms. The issues underlined in this marketplace are true across the industry, highlighting fundamental challenges that marketplaces must face when engaging in NFT sales. In an effort to halt similar problems, major platform OpenSea has attempted to limit the number of NFTs a user can mint for free, ban users for plagiarized content, and limiting fake collections.
Hejazi also made a comment about the nature of NFT sales, noting that while the nature of the sales is to avoid the money hierarchies that exist in the traditional markets, what has been apparent is money buying money, a recreation of precisely what these markets are trying to circumvent.