Skeb Issues Warning About NFT Misinformation

Thanks to Skeb, we now know a little more about NFTs’ (Non-Fungible Tokens).

Thousands of Japanese artists use the Japanese art commission platform Skeb.

Kazunari Kida, CEO of Skeb, issued a lengthy Twitter thread warning of NFT misinformation.

We’ve gathered all of the informative tweets and compiled them here for your convenience.

Frequently asked questions about NFT

1. NFT can prove the ownership of the token, not the ownership or copyright of the associated art.

2. NFT is not a DRM (Digital Rights Management) and is not a technology to prevent the copying of art.

3. The URL of the art is written on the token, and in principle, anyone can view it.

4. Tokens can be issued without permission by other people’s works. There is no function to prove that the author of the associated art has published it properly. Even if it is issued without permission, it is technically impossible to delete it. (Centralized services can often remove the responsible person based on a claim of infringement under the Provider Liability Limitation Act or a DMCA claim.)

5. It does not have a function that can be used as a substitute for commissions (smart contracts in which payments and tokens are issued when delivered). Ownership of tokens is a completely new concept, so I’m worried that some creators misunderstand the ownership and copyright of the art.

6. The NTA has not yet expressed the opinion of whether the trading profit of NFTs will be business income or miscellaneous income. If you have miscellaneous income like buying and selling cryptocurrencies, you cannot total profit and loss. Also, if NFTs are considered intangible assets, sales tax may be incurred. NFT tax treatment (BPS tax accountant corporation).

English Translation, Twitter Translate

Kazunari outlines the potential drawbacks of NFTs and explains why Skeb has no intentions of implementing them at this moment.

The official Twitter account of Skeb drives home the fact that they will not be issuing NFTs.

Kazunari ended his Twitter thread on a personal note, saying that while he is optimistic about cryptocurrency in general, he believes that the possible downsides have not been adequately addressed.

It’s safe to say that anyone considering NFTs should do their research first.

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