Because people were selling tokens of information that did not belong to them, the platform that sold an NFT of Jack Dorsey’s first tweet for $2.9 million has blocked most transactions, according to its founder, who called this a “fundamental problem” in the fast-growing digital assets market.
NFT (non-fungible token) sales climbed to roughly $25 billion in 2021, leaving many people perplexed as to why so much money is being spent on products that do not exist in the actual world and that anybody can view for free online.
NFTs are digital assets that serve as proof of ownership for digital files such as images, videos, and text. An NFT can be created by anyone, and ownership of the token does not always imply ownership of the underlying asset.
“There’s a spectrum of activity that is happening that basically shouldn’t be happening – like, legally,” Hejazi said.
While the Cent marketplace “beta.cent.co” has paused NFT sales, the part specifically for selling NFTs of tweets, which is called “Valuables”, is still active.
Hejazi highlighted three main problems: people selling unauthorized copies of other NFTs, people making NFTs of content that does not belong to them, and people selling sets of NFTs which resemble security.
