Problems with “plagiarism” and “wash trading” forced the NFT market to stop selling

Leading NFT platform The Cent has announced that it will temporarily suspend the sale of blockchain-powered digital artworks.

The decision to halt most of the trading came after it was revealed that some people were involved in fraudulent activities on the platform.

The NFT market stops selling

In fact, the villains took advantage of the room’s anonymity to sell items that didn’t belong to them.

The Cent rose to fame by selling screenshots of the first tweet on Twitter for millions of dollars. The platform was one of the first marketplaces to record a transaction that garnered widespread attention and also generated the first known multi-million dollar NFT sales.

While the NFT space has since evolved into an integral part of the broader crypto industry, it has also cemented itself as a giant in recognition of its growth and popularity. Interest continued to grow despite the crypto market crash in January.

However, reports and indicators show that the NFT space is full of scams, fakes and wash trading. Even a recent Chainalysis report revealed the extent of the “rot” in the NFT space.

Speaking about the situation, The Cents CEO and co-founder said it was a “fundamental issue” that shouldn’t have happened.

According to him, problems can be divided into 3 categories. First, some people are illegally selling copies of other people’s NFTs. The second category are those who work with other people’s NFTs. Finally, NFT sellers can be classified as securities.

This forced cent marketplace beta.cent.co to temporarily suspend the option to sell NFTs. However, selling tweets in the form of NFTs is still very active.

UK seizes 3 NFT

In a separate development, the UK’s top tax authority – Her Majesty’s Revenue and Customs (HMRC) – has seized three NFTs in an alleged VAT fraud investigation involving 250 ghost companies.

Authorities revealed they had arrested three people on suspicion of attempting to defraud £1.4million, adding that it was the first time law enforcement had seized digital tokens of this type in the country.

Regarding the seizure, HMRC Deputy Director Nick Sharp revealed the case will deter others from hiding assets from tax authorities.

Taxation has become a dilemma in the crypto industry as different countries impose different regulations on the industry. While many governments are attempting to tax this vast development space, others have yet to make their intentions public.

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