Entertainment for the chosen few? Scientists have named the main problem of NFT

According to a new study, 85% of all NFT transactions are made by only 10% of traders.

NFT, or non-interchangeable tokens, is a collectible digital asset that was developed based on the Ethereum blockchain technology in 2017.

The essence of NFT is that along with an item, the buyer receives a unique set of symbols that guarantees its value. Each NFT transaction goes into a special registry, so users have a guarantee that they possess the original virtual object.

NFT technology is supposed to make digital art more democratic by decentralizing intellectual property rights.

However, according to a study published the other day in the journal Nature, most trading in the NFT market is done by a limited number of traders.

The researchers stated that the NFT market is almost entirely captured by "whales" or large cryptocurrency owners. The authors of the paper analyzed NFT transactions over the past four years and came to the conclusion that 85% of all transactions are made by only 10% of traders. This is confirmed by the fact that in India, this kind of online gambling operation is still prohibited, according to the website https://luckylife.in/jeetwin-casino-review/.

According to study leader Andrea Baroncelli, the idea of NFT as a new art market is not yet true.

Scholars have also linked some NFT transactions to money laundering and illegal financial activity.

As a reminder, Vitalik Buterin, co-founder of the Ethereum blockchain platform, previously said that NFT tokens should be used for charity, not for making money from already rich people, including Elon Musk.

"If NFTs are seen as a casino making profits for already rich celebrities, the result will be less impressive," - Buterin said.

The Ethereum founder recalled Elon Musk, who sold his NFT tweet and got rich by an extra million dollars because of it. At the same time, Buterin pointed out that Jack Dorsey, the creator of Twitter, spent $2.55 million from the NFT sale on charity.