Does content moderation on platforms like OpenSea amount to censorship?

Does content moderation on platforms like OpenSea amount to censorship?

What are the responsibilities of blockchain companies when it comes to freedom of expression? A controversial cartoonist finds out the boundaries.

“I would describe myself as a transgressive artist,” the conservative cartoonist who calls himself Stonetoss, told Forkast.News. On Nov. 20, Stonetoss released 5,000 non-fungible tokens based on characters found in his work, listing them on Rarible and OpenSea NFT marketplaces. Calling his cartoon characters “Flurks,” Stonetoss said the sale was a huge success, selling out in just over 20 minutes for a total of 420 ETH worth US$1.8 million.

But hours later, both Rarible and OpenSea pulled the Flurks series from their listings without offering an explanation why, adding fuel to the debate over content moderation in the growing NFT marketplace.

Stonetoss is no stranger to controversy — he says he has received death threats in the past — which is why he only wished to be identified by his artist name. His cartoons often depict right-wing interpretations of issues regarding race, LGBT+ rights and vaccine mandates. While the Flurks themselves do not contain any explicit commentary, they do contain imagery relating to these themes, such as Confederate flags and red MAGA hats that are popular with Donald Trump supporters. Stonetoss believes his art was delisted due to the politics that he is associated with, rather than based on the actual content of his NFTs.

But is getting kicked off OpenSea and Rarible a troubling form of “censorship” and an infringement of artistic freedom, as Stonetoss says, or is it within these companies’ right to include only content that they like? With OpenSea alone controlling over 98% of the Ethereum trading volume market share, according to DuneAnalytics, do these blockchain marketplaces have a moral obligation to do more to defend freedom of expression, even if the views may be odious to a majority of its users — especially for a blockchain-powered industry that often champions decentralization as a safeguard to censorship?

Industry leaders themselves seem divided on these issues, and the extent of obligation and responsibilities of blockchain companies when it comes to freedom of expression.

“Whenever we talk about decentralization, it’s not about a cowboy town where you could just come in with anything,” Anndy Lian, founding member of NFT creative studio Influxo, told Forkast.News. “You have to follow the rules.”

Just as a physical gallery has the right to decide what art they wish to exhibit, Lian says NFT platforms are no different — and just because an expression exists as an NFT does not excuse it from the cultural consequence of its message.

“If the artist or the artwork is subjective, there is a chance that it will be removed,” Lian said. “This has nothing to do with [whether it’s an] NFT or not. This happens in the art world, in galleries too. This is surely not about decentralization and decentralization is not about just freedom.”

But others say that’s not really a choice when dealing with centralized systems like OpenSea or Rarible, when combined they effectively control the NFT marketplace — until better systems come along.

“If a company makes a decision that a user doesn’t like, they have the option to leave,” says said Corey Petty, chief security officer at decentralized messaging app and Web3.0 browser, Status, in an interview with Forkast.News. “If you don’t have that option, then companies can do whatever they want and you just can’t do anything about it. Which leads us to where we are today. [They] made a decision. What are you going to do? Leave? There are no other options.”

Stonetoss says he feels singled out by the right-wing politics usually associated with his brand rather than individual Flurks being offensive. The NFTs that got delisted from OpenSea and Rarible also contain symbols associated with the left, such as the rainbow pride flag and the communist hammer and sickle.“If I was a no-name artist, this would not have been the controversy or it would have not have received the reaction that it did,” Stonetoss said in a Zoom audio interview with Forkast.News with the camera turned off.

According to Rarible staff, the platform does not de-list items based on political affiliation. According to OpenSea’s terms of service, OpenSea will delist NFTs if they are determined to incite hate or violence against others.

“The delisting of my NFTs on Rarible and OpenSea was probably the result of a mass report because this is the technique [campaigners] have tried to use many times. The NFTs themselves, I maintain, are benign.”

But least one Twitter user spoke out about the inclusion of some of those symbols on NFTs hosted on the platforms, who said they are anything but benign: “I am losing followers for calling out a project blatantly using confederate flags in their NFTs. I am a racial minority, I grew up in the south, and my uncle was murdered because of the color of his skin.”

Another user in the same thread summarized the debate surrounding the use of the Confederate flag — which represented the slavery-defending states of America’s South, which lost the nation’s Civil War over 150 years ago but is still clung to with nostalgia by some Whites in America — by replying: “Sorry to hear this, I’m from the South and don’t know the pains of dealing with being a minority, I also know people that love the south who don’t look at the confederate flag as racist, I guess it’s hard to know people’s hearts and perspective, we can all learn and grow and show love.”

Neither OpenSea of Rarible had contacted Stonetoss to notify him of the delisting by the time he spoke with Forkast.News. At least one Flurk displayed on the homepage of Stonetoss’s website is wearing a cowboy hat and carrying a Confederate flag.

Rarible and OpenSea did not respond to Forkast.News inquiries for comment.

Will Stone decentralized Web3.0

As the world enters the realm of Web 3.0, Stonetoss’ story represents the glaring need — or cautionary tale, depending on your perspective — of how a decentralized version of the internet built around blockchain technology can dramatically change the gate-keeping powers and kind of content of public platforms.

“What we have is an emergent property of how the internet was built in the first place, that is the client-server model,” said Petty, of Status.”When you aggregate data and pool things like this, it’s inevitable that the people who are custodians of that information will take advantage of it” — including trying to control it in a way to maximize profits.

“That’s where we are today,” Petty added. “We build applications, they aggregate data. They then learn they can monetize that data; they optimize the application for monetization, not the end user.”

With a total trading volume of over US$13 billion, according to DappRadar, OpenSea might be the most important venue for digital artists to find buyers for their NFTs. Stonetoss says his delisting from the OpenSea NFT marketplace was not only a blow to him financially but also might have chilled creators of other controversial art. While Flurks holders are still able to transact peer-to-peer — his NFTs are de-listed but not deleted from the Ethereum blockchain — the infrastructure and culture is not yet available to allow the community to trade with the same ease as they would on a platform like OpenSea.

While the Flurks are not locked out of being traded — Stonetoss also sells them through his own website — OpenSea and Rarible have such an outsized influence on the market that any NFT collection that is not listed on one of these platforms is at a significant market disadvantage.

If the decision-making power to list or not list NFTs for sale were decentralized, would Stonetoss’s Flurks have suffered the same fate?

The moderating voice

In August this year, a series of 7,000 NFTs based around the popular meme Pepe the Frog — a mascot of Hong Kong’s pro-democracy movement in 2019 as well as a symbol championed by America’s far-right —  was removed from the OpenSea NFT marketplace after the character’s original creator filed a notice of copyright infringement with the platform.

OpenSea was quick to remove the content on copyright infringement grounds, but investors were left holding millions of dollars worth of NFTs with no significant marketplace left to trade them.

But when a collection of NFTs that look a lot like Flurks went up on OpenSea, the unauthorized copycat series remains listed on the site.

But should Stonetoss one day decide he wants to enforce his copyright, a truly decentralized platform is likely not going to act on user complaints.

“There is a long history of art that is transgressive and there should be a place for it,” Stonetoss said, admitting he would have trouble finding a physical gallery to display his work, which is why his medium has always been online.

“Those sorts of avenues are even more susceptible to people complaining about having a particular piece of art up,” Stonetoss said. “So, on the whole, I’m actually very optimistic; the whole de-listing event has been a little disappointing in that regard, but I guess it’s part of the growing pains of this sort of technology.”

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Coinbase Ventures Into the NFT Market – Trend Setting for Other Crypto Platforms?

Coinbase Ventures Into the NFT Market – Trend Setting for Other Crypto Platforms?

Coinbase has announced the launch of its marketplace for non-fungible tokens (NFTs). Prospective users will be able to join the waiting list to use Coinbase NFT – a decentralised marketplace for NFTs that will make minting, purchasing, showcasing, and discovering NFTs easier for its users.

NFTs offer buyers the opportunity to own digital assets that are stored on the blockchain. NFTs have gained mainstream attention across the art, music and fashion industries, enabling creators to monetise their digital work and providing buyers with a unique and clear proof of ownership.

NFT trading activity is on the rise. It soared this summer, more than doubling between July and August 2021, with roughly 280,000 unique buyers and sellers by the end of August. High profile NFT sales include the £500,000 sale of the ‘Charlie Bit My Finger’ NFT earlier this year.

Coinbase NFT will be a peer-to-peer marketplace designed to enable creativity. The initial launch will support Ethereum-based ERC-721 and ERC-1155 standards with multi-chain support planned for the near future. The platform has been created to foster community and connect creators, collectors and fans. Users will receive a personal feed that will showcase their NFTs in one place, helping to connect them with like-minded fans or artists.

As part of Coinbase’s overarching mission to drive economic freedom, Coinbase NFT will empower creators and help to raise the ‘creator economy’ from being a smaller subset of the ‘real economy’ into a central driver of economic activity.

The Knock-on effect

Despite using blockchain, crypto exchanges have typically kept their distance from NFTs. In the last couple of years, NFTs have seen an unprecedented level of popularity, setting off alarms for crypto exchanges, making them wonder if it should be something to look at. Coinbase has finally taken the plunge, but what will this mean for the NFT market and how will other crypto exchanges respond?

Barron Solomon, CEO and co-founder of Solo Music said, “While established exchanges like Coinbase and Robinhood [rumoured] have come to the NFT space later than the industry’s most prominent platforms, their arrival is a promising sign for the future of NFTs. Crypto-curious people are likely to feel more comfortable starting their NFT research with entities they know and trust, with familiar platforms. Once they dip their toe into the NFT world, I’m confident that they will become interested in the space and look to platforms new or old that are offering unique NFTs specific to their interests. I think NFTs in the music and entertainment industry in particular will see massive engagement as fans and consumers become more familiar with engaging in the digital space. Ultimately, this will lead to mainstream adoption which benefits the industry as a whole.”

“Coinbase’s Coinbase NFT launch signals that the entire cryptocurrency market has fully embraced NFTs.” said Aubery Strobel, Head of Communications at Lolli. “For many, Coinbase was their first experience in buying bitcoin and other alt-coins. Now it will be, for many, their first on-ramp to owning an NFT. Next for this industry will be the integration of NFTs into a digital and physical identity across platforms, creating the beginnings of the metaverse.”

On the topic of the digital and physical identity Victor Hogrefe, CBO and Co-Founder at EonLabs, said, “A broader point here about NFTs is that their popularity shows we’re shifting from the real-world economy to the digital economy. It’s about changing how and what we value.

“It may not be a smooth ride for NFTs, though. The tokenisation of traditional assets has met with two massive obstacles:

  • The problem of connecting the asset with the token in a meaningful and secure way, thus preventing double-spending or other types of fraud (If I can tokenise a house, and sell those tokens to overseas investors, what is to prevent me from then also selling the house in a traditional way, thereby double selling the house?)
  • Securities laws. The problems of dealing with securities law, regulatory and jurisdictional issues make tokenisation of assets a pain and tend to erode the benefits of doing so at all.

“The low-hanging fruit of asset tokenisation is assets that already only exist in digital form, and this is exactly what we’ve seen with the rise of NFTs.”

María Paula Fernandez, Advisor to the Board of Directors at Golem Network said, “Coinbase have a proven track record of having one of the easiest crypto onboarding processes in the industry. Coinbase provided many options for getting the best use out of coins, but we never had anything like that for NFTs. OpenSea is good but they are not as widespread as Coinbase – they don’t have the know-how of what a user needs to the same extent, and how to capitalise on an increase of users through word of mouth.

“It would be great to see other crypto platforms follow suit but they would have to be mindful approach towards onboarding new technologies and new users – understanding the risks that come with this.

“I think Coinbase’s expansion is fantastic as we needed healthier competition in the space. No market should be dominated by a singular business. The expansion offers a new alternative for people, to change up what they had previously been used to and not go to that only option in the market.”

Anndy Lian, Founding Member of INFLUXO, said “The announcement that Coinbase is entering into the NFT market, coupled with FTX launching a Solana-based NFT marketplace, suggests strongly that NFTs are going to go mainstream in a big way. While the current dominant NFT marketplace OpenSea has seen up to 80,000 transactions a day its browser based wallet is not super easy to use at times and there have been security issues which have put people off. The Coinbase emphasis on usability, from initial minting to discovery of new and exciting NFTs, is a sign of the growing accessibility of the NFT market. Another sign of taking NFTs mainstream may be what Coinbase describes as a ‘personal feed’, blending social media and NFTs. Following Twitter’s rollout of profile NFTs and TikTok’s launch of its first creator-led NFT collection, TikTok Top Moments, this could be huge, especially if Facebook picks up on this NFT personalization trend and runs with it.

Coinbase’s reach will bring new users to the world of NFTs and whilst they will initially only use Coinbase as a means to trade and mint, the more confident they get, the more likely they will explore other platforms.

 

 

Author

Francis is a junior journalist with a BA in Classical Civilization, he has a specialist interest in North and South America.

 

Original Source: https://thefintechtimes.com/coinbase-ventures-into-the-nft-market-trend-setting-for-other-crypto-platforms/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j