NFTs’ “Plagiarism” and “wash trading” issues forced the NFT marketplace to suspend sales!
The NFT scene has become replete with issues bothering on plagiarism, wash trading, and other “legal” issues despite its growth.
The NFT platform Cent has announced the suspension of sales of the blockchain-backed digital arts for the time being.
Also, the decision to stop most of its transactions was made after a detailed revelation. The details are emerging after some individuals were engaged in fraudulent activities on the platform.
NFT marketplace pauses sales After Plagiarism
To be precise, bad actors were taking advantage of the anonymity. They are offering the space to sell items that were not theirs.
Further, the Cent came to the limelight when it sold the screenshot of Twitter’s first tweet for millions. This platform was one of the very first marketplaces to record a transaction. This major transaction attracted significant attention across the space and also drew the first known million-dollar NFT sales.
While the NFT space has since grown to become an integral part of the wider crypto industry. It has also cemented itself as a behemoth in its own right as it recorded a surge in its growth.
However, reports and indications have emerged that the NFT space has become replete with scams, counterfeits, and “wash trading.” A recent Chainalysis report revealed the extent of the rot in the NFT space.
Speaking on this, the CEO and co-founder of The Cents labeled it a “fundamental problem” while also adding that: “there is a spectrum of activity that is happening that basically shouldn’t be happening — like, legally,”
Three Categories
He continued that the problems the platform was selling could be split into three categories:
The first category is the fact that some people are selling unauthorized copies of other people’s NFTs
The second category is those making NFTs of other people’s works, and lastly, those selling NFTs, which could be classified as a security.
This has forced the Cent marketplace “beta.cent.co” to pause its NFT sales option. However, the sales of NFT tweets are still very much active even after plagiarism.
In another development, the UK’s foremost tax authority, Her Majesty’s Revenue and Customs (HMRC), have seized three NFTs. They have seized as part of a probe into a suspected VAT fraud involving 250 alleged fake companies.
They’ve also added that this was the first time that law enforcement in the country would be seizing the digital tokens.
