NFT Founders Pave Path: Company Equity for Collectors in Landmark Decisions
Summary:
In a landmark move, the founders of two NFT collections, The Plague and Rektguy, have announced their intentions to offer company equity to their NFT holders. Despite initial legal and regulatory concerns, both parties have assured that the strategies align with legal norms. The move has sparked considerable debate within the NFT community and looks set to inspire a trend towards more direct shareholder representation within the burgeoning NFT market.
During the festive period, the creators of two distinct nonfungible-token (NFT) collections declared plans to provide company equity to their NFT holders. The Plague, an NFT selection curated by Pons Asinorum, made the announcement on Christmas day, stating that individuals holding their NFTs would receive an allotment of the company’s shares, correlated directly to the number of unregistered NFTs owned by each holder. Despite apparent legal and compliance concerns, Asinorum ensures this course of action is completely lawful, citing legal counsel and emphasizing that the shares are provided as a gift, not sold.
Shortly after this reveal, a similar equity-sharing venture was expressed by Ovie Faruq (known as OSF in the realm of NFTs), co-creator of the popular NFT collection, Rektguy. Come New Year's day, Faruq laid out plans to gift company equity from their venture, Rekt Brands Inc., to holders of their NFTs. Articulating gratitude for collectors' support of Rektguy as an artistic endeavor, Faruq elaborated that this gesture was strictly non-transferable through NFT trading and complies fully with legal expectations.
With lifetime sales figures amounting to over $7 million for The Plague and surpassing $28 million for Rektguy, as recorded by CryptoSlam, the NFT monitor, these announcements sparked significant conversation in the NFT community.
While Azuki’s resident researcher, Waleswoosh, views these strategies as potentially legal, they also pointed out that criteria for NFT ownership had been established prior to any discussion of equity offerings. Some community members expressed optimism for similar ventures, hypothesizing multiple ways to navigate around the concept of genuine equities. Requests for further comments from Faruq and Asinorum remained unanswered at the time of writing.
Published At
1/3/2024 4:26:43 PM
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