Gate.io: Ban on resale of NFTs? illegal? Explanation of risks

Gate.io

What do you mean by reselling NFTs? In general, it may give a very bad impression.I will explain it in this article. There are many people who resell items in the NFT market, but is this illegal? And is resale allowed? I will explain the actual situation.

What are NFTs?

NFT is Non-Fungible Token, which is the Japanese abbreviation for non-fungible token. NFT is content that uses blockchain technology, which is also used for virtual currencies, and records all history such as transactions, creators, owners, etc. It is difficult to falsify the history and it is possible to distinguish it from a fake. Therefore, NFT is a unique piece of content. It has been attracting a lot of attention since around 2022 and is considered a worthwhile investment. In such cases, an increasing number of people in Japan are using the free OpenSea service and owning it. Before you actually start on the web, you should consider whether or not you want to buy an expensive NFT.

NFT resale is OK

It is not particularly illegal to resell NFTs. And resale is permitted. Rather, reselling leads to sales for creators. There are reasons why reselling NFTs is not prohibited. General resale may have a bad image, but NFTs are actually welcomed. There are many examples of resale, and although there are fees and expenses involved, some people make a profit. Please note that the terms of use vary depending on the platform, so the points vary. Even beginners can use it safely and without any initial cost. There are so many new NFTs being issued now.

Is it illegal to resell NFTs?

In short, NFT resale is not prohibited by law. On the contrary, in the case of the NFT market, there are no laws or regulations, so you are generally at your own risk. NFT resale involves purchasing NFTs, selling them at a higher price than when you purchased them, and making a profit from the difference. Resale is the basis of business and is not bad in itself. Buying low and selling high is a common practice in other markets as well. We can look forward to the future, but before participating, please carefully consider whether each work is worth it. In Japan, the number of services we operate is increasing, and the number of products we handle is also increasing.

Why NFT resale is OK

The reasons why NFT resale is not prohibited are as follows. If you register on a popular exchange, reselling is easy and in many cases OK, but in order to make money from buying and selling, you may have to pay upfront fees such as gas fees. Also, please note that events may be held in the marketplace due to separate projects. This field and industry is expected to continue to develop, and it represents a great business opportunity. Recently, Gate.io has also officially started handling NFTs. You can rest assured that the owner is clearly listed and cannot be tampered with by a third party.

creators benefit

In NFT, the creator also receives a reward each time a resale occurs. There is something called royalty, and it is a huge benefit for creators as they can earn income each time they resell their work. This is an element that is not present in actual resale, so this is also a unique advantage of NFT. Data, whether it’s music or images, is protected against unauthorized use. This is because the system identifies the owner. Since this is such a hot topic, companies are also getting involved.

keep transaction history

NFTs can be resold because all transaction history may be recorded on the official website. NFTs record the artist’s creator, purchaser, transaction price, and transaction date and time. This system uses blockchain technology to ensure that records are kept securely. However, please note that the price of NFT will change completely in the future. Depending on what you do, it may be difficult to make a lot of money. If you want to start speculating in the long term, it is important to predict the future potential before buying.

Cases where NFT resale is prohibited

On the other hand, there are cases where NFT resale is prohibited. Some scams are rampant, so be careful in either case if you are doing it alone. As there are no legal regulations in place, we recommend that you understand this to some extent before using NFT.

Fake NFTs

Fake NFTs are often sold in collections. If you buy a fake NFT and try to resell it, the exchange may delete it. Furthermore, if you resell a counterfeit, it will be recorded in your history, so there is a considerable risk for the reseller.

Chinese NFTs

Speaking of China, there is only a dangerous image of a dictatorship, but that country has banned virtual currency in the first place. Since NFTs are traded on the Ethereum chain, the handling of NFTs is virtually prohibited. Therefore, NFT resale in the Chinese market is not possible.

stolen NFT

The exchange prohibits the sale of stolen NFTs. If a user receives a report of a potentially stolen NFT and has a history of suspicious transactions, the user may be penalized and we strongly advise against doing so.

NFT Marketplace

Gate.io allows you to enter the NFT marketplace and actually do business. To do so, you will need to open an account. If you want to sell your work, open an account. I also introduce it in the following article.

コメント

Copied title and URL