Cent CEO Cameron Hejazi said that since February 6, the platform has suspended NFT trading due to an increase in fraud cases in the non-fungible token industry.
Cameron Hejazi explained that the reason for this decision was the increasing number of counterfeit NFTs being issued by scammers. The company is interested in protecting content creators, and therefore is considering the introduction of centralized control. Hejazi clarified that this will be a short-term measure in order to restart NFT trading on the platform.
“There is a whole range of activities going on that shouldn’t happen by law,” Hejazi said.
Although the platform has suspended the buying and selling of NFTs, the Values NFT tweet collection is still available for purchase. Cent’s CEO said that the company will continue to explore decentralized solutions as many NFT creators and collectors are attracted to decentralized platforms that allow users to create and collectible tokens.
The founder of Cent noted that the problem of issuing counterfeit NFTs concerns not only its platform, but the entire industry as a whole. Hejazi worries that these issues could come to the fore as big brands join the metaverse, or Web3. He noted that Coca-Cola and luxury brand Gucci are among the companies selling NFTs, and recently YouTube said it would explore the features of non-fungible tokens.
“I think this is a pretty fundamental problem with Web 3.0,” he said.
In early February, the popular NFT issuing and trading platform OpenSea reported that more than 80% of NFTs created using the “lazy minting” feature were found to be plagiarism, spam or fake. Last year, a scammer advertised a fake Banksy NFT on the artist’s official website and sold a non-fungible token on OpenSea for $338,000, and then returned almost all the money to the buyer.
Recall that recently the State Duma Committee on Information Policy proposed to consolidate the concept of NFT and extend the effect of the law “on landing” of foreign IT companies to marketplaces of non-fungible tokens.
Source: Bits
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