Resale may generally give a very bad impression. There are a lot of people who resell in the NFT market, but is this illegal? And are they allowed to resell? I will explain the actual situation.
What are NFTs?
NFT stands for Non-Fungible Token, a non-fungible token in Japanese. NFT is a content that uses blockchain technology, which is also used for virtual currency, and all history such as transactions, producers, and owners are recorded. It is difficult to falsify the history, and it is possible to distinguish it from a counterfeit. Therefore, there is only one NFT content.
NFT resale is OK
Is it illegal to resell NFTs?
NFT resale is not prohibited by law. On the contrary, in the case of the NFT market, there are no laws and regulations, so it is generally your responsibility. NFT resale buys NFT and sells NFT when the price is higher than when it was purchased, and the difference is profit. Reselling is fundamental to business and not bad in and of itself. Buying low and selling high is common in other markets as well.
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.
In NFT, creators are rewarded every time a resale occurs. There is something called royalties, and you can earn income each time you resell, which is a pretty big advantage for creators. This is a unique advantage of NFT, as it is an element not found in actual resale.
keep transaction history
NFT can be resold because all transaction history is recorded. NFTs record the creator, purchaser, transaction price, and transaction date and time. Blockchain technology is a mechanism that keeps records firmly.
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 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.
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.
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.
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.