NFT News

Ex-SEC Chief Calls Jack Dorsey’s First Tweet NFT “Worthless” & NFT Marketplace A “Scam”

Former SEC Enforcement Chief John Reed Stark calls Jack Dorsey’s NFT of first tweet as "worthless" and NFT marketplace a "scam."
Published by
Ex-SEC Chief Calls Jack Dorsey’s First Tweet NFT “Worthless” & NFT Marketplace A “Scam”

John Reed Stark, former Chief of the US Securities and Exchange Commission Enforcement Office, on Wednesday said the NFT of Jack Dorsey’s first Tweet now has no value or is essentially worthless. He argues that the NFT marketplace is totally manipulated or controlled by deceptive ways and the smart contracts are incapable of total security and ownership.

Advertisement

John Reed Stark Criticizes NFT Marketplace

John Reed Stark has been vocal against crypto exchanges, executives, and the NFT space. In a new tweet on July 20, he urged people to stay away from non-fungible tokens as they are an investment scam. He believes that buying an “NFT for fun or as a photo for your Instagram or Twitter, whatever, have at it,” but it as an investment is completely useless.

He calls the NFT of Jack Dorsey’s first Tweet “worthless.” Moreover, he added that a Bored Ape with funny glasses and a colorful hat and the NFT of a Tweet are not sound investments that grantees a financial dream. The NFT market is totally manipulated without any control.

“While NFTs are supposed to be completely decentralized, in most cases there’s no cryptographic relationship between the image that an NFT points to and its token. The image could be easily altered or replaced if people with the access to servers changed the file names.”

The NFT market has duped investors of billions of dollars after the NFT bubble burst during the crypto winter. Celebrities have long been tied up in the world of cryptocurrencies, NFTs, and other digital assets. Stark slammed celebrities such as Paris Hilton, Jimmy Fallo, and Kim Kardashian blatantly exploited their own fans, shamelessly shilling crypto and these nonsensical fractionalized JPEG links.

Advertisement

Stark On Binance and Coinbase Lawsuit

John Reed Stark sides with the US SEC to allege that Binance and Coinbase have violated multiple federal and state securities laws. He believes the SEC will win the lawsuits against Binance and Coinbase and stop them from harming investors.

However, the Torres Doctrine established in the US SEC v Ripple Labs lawsuit weakened the SEC’s claim that most digital assets are securities and violate securities laws.

Also Read: Terra And Do Kwon To Dismiss US SEC Lawsuit Citing XRP Ruling As Precedent

Advertisement

Share
Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Breaking: Ripple Partners With Bahrain’s Fintech Bay in Push for RLUSD Adoption

Ripple has announced a new partnership with Bahrain’s Fintech Bay (BFB). This initiative seeks to…

October 9, 2025
  • Altcoin News

XRP News: Why Whales Sold 440M Coins in a Month Despite ETF Launch Buzz

In a major XRP news today, whales are betting against XRP ETF launch anticipation and…

October 9, 2025
  • 24/7 Cryptocurrency News

Just In: DeFi Dev Corp Launches Japan’s First Solana Treasury Company, SOL Price Reacts

DeFi Dev Corp has announced the creation of Japan’s first Solana Treasury firm in partnership…

October 9, 2025
  • 24/7 Cryptocurrency News

Pi Network Mainnet to Get Major Upgrade in Q4, Says Expert

Over the past month, the Pi Network testnet has been actively testing the Protocol v23…

October 9, 2025
  • 24/7 Cryptocurrency News

Bitwise Solana ETF to Launch This Week as It Amends Staking, Fees? Bloomberg Weighs In

Bitwise Solana ETF (BSOL) is likely gearing up for launch this week as the issuer…

October 9, 2025
  • 24/7 Cryptocurrency News

Canary Capital Trump Coin ETF Secures DTCC Listing as Expert Predicts Price Breakout

Canary Capital’s Trump Coin ETF has been listed on the Depository Trust & Clearing Corporation…

October 9, 2025