Popular NFT Marketplace Cent Halts Operations

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Cent, a popular NFT marketplace, recently paused all NFT transactions due to numerous occurrences of people selling NFTs of content they do not own.

Cent: Trendsetters in the NFT Space

Cent might not be as large or as well known as competitors like OpenSea, but they are famous for being part of some of the most widely-covered occurrences in the NFT space. If you’re wondering why the Cent Marketplace rings a bell, Cent is the platform that facilitated the sale of former Twitter CEO Jack Dorsey’s first tweet as an NFT.

 

https://twitter.com/jack/status/20?s=20&t=NvnBCtQ6Y-oM-XCjElBICg

 

Facilitating the sale of Twitter’s first tweet as an NFT was huge for Cent and the entire NFT community. The sale of a tweet for the equivalent of $2.9 million garnered much attention from NFT enthusiasts, investors, and everyday people trying to make sense of the transaction.

 

Cent is a sizable marketplace, and they execute a considerable amount of NFT transactions, but they’re far from being a significant player in the world of NFTs. Currently, this platform has around 150,000 users, and throughout this report, we will look into why Cent recently halted most transactions on their platform and what this may mean for other marketplaces and the NFT world.

 

https://twitter.com/Valuables/status/1470473721731330052     

NFT Counterfeiting

NFT counterfeiting is a severe problem in this space, and most times, it involves counterfeiters selling NFTs of artworks that do not belong to them. NFT counterfeiting is such a huge problem that artists worldwide wake up daily to find tens, hundreds, and even thousands of their work being sold illegally as NFTs.

 

The NFT space has grown so much in such little time, and sales of NFTs eclipsed $25 billion in 2021, and when you have a market of this size, it’s almost inevitable for crime to seep through the cracks. Lazy minting is a phenomenon where an NFT can be listed for free on NFT marketplaces without being embedded on the blockchain.

 

NFT counterfeiters can easily create bots to search the web for artworks posted on web galleries and websites, lazy mint these artworks on an NFT marketplace, and hopefully make a few sales before they are taken down.

NFT marketplaces, the wild west of NFT activities

Artists have found that the process of identifying and taking down counterfeits from NFT marketplaces has become increasingly complex over time. Not too long ago, if an artist discovers a counterfeit of their work, they notify the marketplace, and it gets taken down swiftly.

Unfortunately, this isn’t the case anymore; it’s harder today than it has ever been to take down counterfeits on platforms like OpenSea, and artists with substantial social media followings are left with no choice but to call out these marketplaces on Twitter before they take down counterfeits.

 

https://twitter.com/Med_Watanuki/status/1478012274920943618         

OpenSea reported in January 2022 that over 80% of NFTs minted through its free-listing platform were “plagiarized works, fake collections, and spam.” Users and artists have grown frustrated with marketplaces not doing enough to curb the spread of such actions, and it’s terrific to see marketplaces like Cent take the lead on eliminating counterfeit NFTs from their platform.

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