Mark Cuban and Yuga Labs Condemn OpenSeas Decision to Sunset Creator Royalties

Mark Cuban and Yuga Labs Criticize OpenSea Over Royalties

Mark Cuban and Yuga Labs, the creator of Bored Ape Yacht Club, expressed their disappointment with NFT trading platform OpenSea after the company announced it would no longer enforce creator royalties. Cuban, an OpenSea investor, called the decision a “HUGE mistake” that damages trust in the platform and the industry. OpenSea’s move to stop enforcing mandatory royalties is seen as a response to competition from other marketplaces that have also reduced creator fees. Yuga Labs plans to sunset its compatibility with OpenSea, meaning it will disallow trading of new projects and those with upgradeable smart contracts by February 2024. Other creators, such as Betty from Deadfellaz, called for an industry-wide boycott of OpenSea, criticizing the company for abandoning support for decentralization and underrepresented artists.

Main Points:

Mark Cuban criticizes OpenSea for not collecting and paying royalties, stating that it diminishes trust in the platform and harms the industry.
OpenSea’s decision to stop enforcing creator royalties is seen as a response to competition from other marketplaces.
Yuga Labs plans to sunset its compatibility with OpenSea, disallowing trading of new projects and those with upgradeable smart contracts.
Betty from Deadfellaz calls for an industry-wide boycott of OpenSea, accusing the company of failing artists and underrepresented creators.
Smaller marketplaces like Rarible reaffirm their commitment to creator royalties, while some on Twitter fear the industry-wide impact of OpenSea’s decision.

Hot Take:

OpenSea’s decision to sunset enforcement of creator royalties has sparked criticism from major players in the NFT space, including investor Mark Cuban and creator Yuga Labs. The move is seen as a response to competition, but it risks damaging trust in the platform and hurting the industry. The backlash from artists and creators highlights the importance of supporting decentralization and providing fair compensation for their work. While smaller marketplaces reaffirm their commitment to creator royalties, OpenSea may face consequences as creators and buyers consider shifting their business elsewhere. This decision could have significant implications for the future of NFT trading platforms and the treatment of artists in the crypto industry.