SEC Targets NFTs: A Turning Point or The End

GM Readers!📪 It's BitDegree Insider, and today we've got some serious things to talk about. Get ready, a really cool review of NFT-related facts is incoming in 3..2..1..

⭐️Today's selection:

• 🧨SEC vs NFTs
• 👨‍💻Questions About Winning Our $500 Raffle
• 👌Selected Meme of The Day
• 📰Bite-Sized News

SEC vs NFTs (How The Whole Market Feels)

Firstly: The U.S. Securities and Exchange Commission (SEC) has accused the media company Impact Theory of promoting securities without registration.

In Detail: In 2021, Impact Theory released an NFT collection called Founder's Keys. The company promoted the project from October to December 2021.

The regulator stated that the company positioned the project as an investment in business. Specifically, they promised extensive prospects.

As a result, according to the SEC's ruling, the aforementioned NFTs appeared to have the characteristics of an investment contract and, consequently, are considered securities. By promoting the collection, the company violated federal law in this sector.

"Absent an exemption, any offer of securities must be registered. Without this, investors of all types are deprived of the protections provided by disclosure of information and other guarantees established by current legislation," noted Antonia Apps, head of the SEC's regional office in New York.

Impact Theory agreed to pay a $6.1 million fine without admitting or denying guilt. Initially, they profited around 12,000 ETH from the NFT launch, which, even by today's standards, with the price of 1 ETH being $1,624, equals $19 million. Therefore, at the peak of the market in 2021, this amount was more than twice as much! So, it doesn't hit the pocket too hard, right?

However, the company also agreed to return the funds obtained as a result of promoting the collection. After that, NFTs will be burned, and any mention of them will be removed from the website and social media groups of the company (p.s. everything is still working).

This is not the first time the SEC has tried to regulate not only crypto assets but also other sectors in the industry. Specifically, the regulator has attempted to change the definition of "exchange" to extend its authority over DeFi protocols.

Secondly: The volume of NFT trading has fallen to a two-year low in a week.

The number of wallets involved in NFT transactions has also reached a two-year low. In August, this figure was around 100,000.

At the peak of NFT popularity, the trading volume was approximately $1.8 billion, and the number of users was about 670,000.

But is everything really that bad with NFTs?

No! The market is transforming. You'll be surprised!

Not everyone notices the impact of NFT sales among outstanding artists.

For example, the floor price of Refik Anadol's collection, Winds of Yawanawa by Yawanawa, moved from 1.3 to 7.7 ETH in just one month (from July).

Similarly, Sam Spratt's collection, LUCI: Chapter 5 - The Monument Game, started with a floor price of 3.33 ETH and now stands at 8 ETH.

Roope Rainisto's collection, Life In West America, which was minted half a year ago at 0.1 ETH, now has a floor price of 4.25 ETH.

That's how it is; you need to look at the negative situation from different angles! This is just one of the positive examples, there are more.

TL;DR: The U.S. Securities and Exchange Commission (SEC) has accused Impact Theory, a media company, of promoting securities without registration. In this case, it's because they released and promoted an NFT collection. This creates a precedent about how the NFT industry may be treated in the near future by the regulatory authorities. In the meantime, the volume of NFT trading has fallen to a two-year low, but NFT collections from artists are performing better and better.

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SELECTED MEME OF THE DAY

BITE-SIZED NEWS

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• Shibarium Blockchain Gains 35,000 New Wallets a Day After Coming Back Online. Shibarium wallet count increased by 35,000 only 24 hours after the reboot.
• Solana-Based Clockwork Set to Close Because of Limited Commercial Upside. Solana-based Clockwork will wind down its services in late October.

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