More than 80% of NFTs on the OpenSea platform are counterfeit, plagiarized, or abusive
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The NFT boom is rife, and it’s no surprise that someone has broken their brains to make a profit. OpenSea, one of the largest NFT trading platforms, revealed that employees used insider data to buy and sell NFTs to make money, which caused public outrage because of the restriction of free tools for making NFTs.
In the end, they had to lift the limits and revealed shocking but not too surprising data; that is, more than 80% of the NFT works launched by OpenSea were counterfeit, plagiarized, and indiscriminate.
Generally, when making an NFT, there is a “gas fee” fee used to write metadata for new works on the blockchain. OpenSea started by waiving fees to attract artists to use their platform to host NFTs. However, this convenience was used to produce counterfeit, plagiarized, and indiscriminate NFT works, so it was decided to add a restriction of only 50 NFTs free of charge. But after a strong complaint from users, they had to cancel the decision. They said they were working on some different solutions. After learning its lesson, OpenSea promised to preview the changed content for users first.
In addition, the NFT can give artists one more way to sell their works. It is also derived from the problem of stolen works. There is no shortage of related complaints on the Internet. Even a Twitter account to track associated issues can be referenced. According to McMillan, there are currently no laws regulating NFT trading in the United States or Canada. Still, after attracting such attention, it seems that sooner or later, it will attract the SEC to rectify this new market.