Billionaire Mark Cuban criticizes OpenSea’s decision to disable its royalty system
Billionaire Mark Cuban, an investor in OpenSea, has publicly criticized the NFT marketplace’s recent decision to disable its royalty system. OpenSea’s CEO, Devin Finzer, announced that while creator fees will still exist, the enforcement of them would no longer be unilateral. Cuban argues that this move is a major mistake that damages both the industry and the platform itself. According to him, not collecting and paying royalties on NFT sales diminishes trust in the platform and shows desperation. He proposes an alternative system where transactions are free for NFTs that pay their royalty, with OpenSea taking a percentage of the royalty as the fee. Cuban supports royalties for creators as it allows them to continue getting paid for future sales. He also suggests that making textbooks NFTs with built-in DRM and royalties could significantly reduce their prices.
Key points:
– OpenSea’s decision to disable its royalty system is criticized by Mark Cuban.
– Cuban believes that not collecting royalties harms both the industry and the platform.
– He proposes an alternative system where transactions are free for NFTs that pay their royalty.
– Cuban supports royalties for creators as it allows them to earn from future sales.
– He suggests making textbooks NFTs with built-in DRM and royalties to reduce their prices.
Hot Take: OpenSea’s decision may negatively impact trust and the NFT industry
By disabling its royalty system, OpenSea takes away an incentive for creators and potentially damages trust in the platform. Mark Cuban’s criticism highlights the importance of royalties for content creators, allowing them to earn from future sales. His proposed alternative system could provide a balance between creators’ earnings and OpenSea’s revenue. Additionally, his idea of transforming textbooks into NFTs with built-in DRM and royalties could disrupt the traditional publishing industry. OpenSea’s decision may have unintended consequences and could hinder the growth and development of the NFT industry as a whole.
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