Close Menu
    Blockchain

    SEC investigates if CyberKongz NFTs should be registered as securities amidst allegations of rule violations

    By No Comments3 Mins Read
    HI, Did you get a letter from the SEC, man, mail, message, paper, document, regulation, control, envelope, surprise, wonder, SEC

    30s Summary

    The US Securities and Exchange Commission (SEC) is questioning whether CyberKongz’s non-fungible tokens (NFTs) need to be registered as securities. The SEC alleges that CyberKongz violated rules when it sold an NFT, the Genesis Kongz, in April. CyberKongz disputes this, arguing it was merely migrating contracts and plans to fight back. The average CyberKongz NFT costs approximately $26,900, with the platform believing the SEC’s move is an attempt by the Biden administration to target the NFT industry.

    Full Article

    So, there’s some bad news for gamers who are into crypto tokens. CyberKongz, a platform where you can buy and play with unique tokens called NFTs or non-fungible tokens, just got a warning from the US securities regulator. Now, this might not sound like a big deal, but it could really change the landscape of gaming.

    The thing is, the US Securities and Exchange Commission (SEC) is wondering if tokens like the ones CyberKongz offers should be registered as a security before they are issued. CyberKongz is taking a stand and plans to push back, saying this could have huge consequences for the gaming world.

    Now, you might be wondering, what’s a security and why does it matter? Well, it’s basically a financial instrument, something you invest in expecting a return. And SEC needs to oversee these kinds of transactions. The SEC says CyberKongz broke the rules when they sold a particular NFT, the Genesis Kongz, back in April. But CyberKongz insists it was just migrating contracts, not conducting sales.

    They’ve had to fight this battle quietly. They haven’t raised any investment capital and maintain a small treasury. But they plan to keep going. They believe this move from the SEC is an attempt by the Biden administration to push back against the NFT industry.

    But they’re not alone. One co-founder of Axie Infinity, a popular NFT-powered game, has voiced his support for CyberKongz. He hopes future US administrations will stop targeting the NFT world so harshly.

    So what are these CyberKongz NFTs? They’re virtual avatars you can use in various games built on the Ronin blockchain. Despite the warning from the SEC, their price hasn’t taken a hit. In fact, the average CyberKongz NFT costs 6.69 Ether, and that’s equal to $26,900!

    We tried to get in touch with CyberKongz for a comment, but no immediate reply was given. It seems like they’re not the only ones in the SEC’s sights: last month, an Australian gaming company called Immutable also got a warning from the SEC. Guess we’ll just have to wait and see what happens.

    Related Posts