A cryptocurrency marketplace best known for selling a non-fungible token (NFT) of former Twitter CEO Jack Dorsey’s first tweet has been forced to “halt” nearly all sales after it was discovered that the tokens were being used to violate the law.
In response to “a spectrum of behaviour that is happening that really shouldn’t be happening — like, legally,” according to Cent CEO Cameron Hejazi, the NFT marketplace Cent has been forced to shut down almost all sales, as first reported by Reuters.
Hejazi noted in a “community update” that it had come to his attention that “bad actors” had been utilising Cent to “mint” counterfeit NFTs, which mainly comprised selling copies of NFTs that did not belong to them or producing NFTs that contained material that they did not own.
Thus, the marketplace came face to face with exactly the type of issue NFTs were supposed to address in the first place: the assignment of rights to digital goods that individuals possess.
‘The Problem With NFTs,’ says a crypto expert in response to a viral takedown of the technology
Are you bearish or bullish on nonferrous metals? Whatever side of the fence you sit on, there has been plenty of facts released in the last month to support your point of view. The amount of NFT sales and active traders on OpenSea has never been higher in terms of absolute numbers. However, a caustic video critique of the medium—which is nearly as long as Spider-Man: No Way Home—has gone widespread in recent weeks, with crypto critics joyously drawing attention to its most savage claims on social media.
Dan Olson, a video essayist who posts media and cultural analyses on his YouTube channel Folding Ideas, developed the film “Line Goes Up – The Problem With NFTs” over ten months in which he explained the problem with NFTs. Since it went public on Jan. 22, it has been viewed more than 4 million times in total. In the video, Olson examines what he believes are the blockchain’s security flaws, the hype surrounding non-fungible tokens (NFTs), and the restricted capabilities of decentralised autonomous organisations (DAOs).
“The Problem With NFTs” was met with an enthusiastic response from other crypto critics, although it received little attention on Web 3 Twitter. When I began asking around in crypto circles about the video, I discovered that many people were unaware that it existed. Another good example of how divisive this space is was the dual reception: many people who don’t know anything about Web 3 despise it, while those who are financially and emotionally committed to it are often unaware of the dialogue taking place outside of it it it the space.
In an attempt to bridge some of the gaps, I asked Tascha Che, a widely followed macro-economist and Web 3 investor who provides crypto education through essays and videos to her 121,000 Twitter followers, to respond directly to some of Olson’s specific critiques. Tascha Che responded directly to some of Olson’s specific critiques. Olson was then contacted again, and I requested that he react to some of Che’s rebuttals.
NFT Twitter Dispute over New 47.5 per cent Metaverse Fee NFT
Meta, formerly known as Facebook, is aiming to commercialise the virtual world that exists in the metaverse. In less than six months, the corporation once known as Facebook changed its name to Meta, a tribute to its ambitions in the virtual world known as “the virtual world.” On Monday, the business provided details on how it intends to commercialise its Horizon Worlds metaverse programme, which is now only available through virtual reality. The company also announced the launch of a trial phase that will allow some artists to sell in-world things to users in the metaverse.
There is one point in particular that NFT Twitter has grabbed on: the fact that Meta is taking a 47.5 per cent commission on every transaction.
When you purchase an item in Horizon Worlds, a 30 per cent cut is given to Meta via the Oculus platform, and the remaining 25 per cent is given to the Meta App Store. That is significantly higher than Apple’s widely criticised 30 per cent App Store price, and it is significantly higher than the fees that NFT traders are accustomed to. In the NFT space, the marketplace OpenSea takes a 2.5 per cent cut of each transaction, while authors typically receive between 2.5 per cent and 7.5 per cent of the whole transaction.
To be clear, the products Meta is offering are not nonfungible tokens in the traditional sense. They’re more akin to the skins and animations that you can already purchase in games like Fortnite, which are more realistic. However, the metaverse Meta is creating will be in direct competition with crypto-native metaverses such as Sandbox and Decentraland, where in-world things are owned in NFTs, as well as other virtual worlds.
As a final note, I invited both Olson and Che to respond in a more general way to the critiques they had levelled at each other.
Olson claimed that there are fundamental worries regarding Web 3’s fundamental aims, whereas Che focused on the way cryptocurrency levels the playing field for investors and other financial institutions. The following are their final statements.
Netflix, Amazon, and Facebook sprung onto the scene like wildfire right out of the box. Amazon’s first landing page may appear cheesy now, but it was functional at the time: it was an online bookshop that told you if they had a book in stock, you could then purchase it and have it shipped to your location. The rate of adoption was high almost immediately.
The questions around Web 3 are mostly concerned with the fundamental functionality. This item does not perform what it is claimed to do, and it exposes a large number of people to excessively high danger and the associated cost of risk in large numbers.
Cryptocurrency has experienced one of the most rapid technological adoptions in history. [More than 114 million Bitcoin accounts have been formed, compared to 3 million accounts seven years ago.] [More than 3 million Bitcoin accounts were created seven years ago.
The advent of cryptocurrency tokenization has opened the door to investors of all stripes—not only venture capital firms or high net worth individuals—and the tokenized cryptocurrency markets have been liquid since their inception, much like a stock market. If the volatility of startup financing is not something you are comfortable with, then don’t do it.