Last year, a famous US NFT exchange that sold the first tweet of Twitter founder Jack Dorsey as a non-fungible token, so-called NFT, stopped NFT trading.
Because there were people who put up for sale NFTs of content they didn't own.
According to a Reuters report on the 13th local time, Cameron Hejazi, the founder of the NFT exchange 'Sent', pointed out this as a "fundamental problem" and said that he stopped most of the NFT trading through the company on the 7th.
"There's a lot of illegal activity going on that basically shouldn't happen," he said.
Hejazi identified three major problems, including copying and selling other NFTs without permission, creating NFTs with content that you do not own, and selling bundles of NFTs like securities.
Hejazi said the problem of creating counterfeit digital assets is rampant.
He said he would suspend the problem account, but create more other accounts, such as playing a 'catch the mole' game.
In addition, there has been a recent report saying that there is also a bicyclist who sells NFTs to himself to raise the price.
In a situation where major brands such as Coca-Cola and Gucci sell NFTs are jumping into the NFT business in the metaverse (3D virtual space), this issue is getting more attention.
The problem of counterfeiting and illegal content is pervasive throughout the NFT industry, Hejazi said.
OpenSea, the largest NFT exchange with an enterprise value of $13.3 billion (about 16 trillion won), said last month that 80% of free NFTs made on its platform are plagiarism, counterfeiting or fraud.