NFT Projects Give Away Equity to Holders: Legal Risk or Smart Move?
During the holiday season, two nonfungible token (NFT) collection founders made a bold move by giving away company equity to their NFT holders. Pons Asinorum, the founder of “The Plague” NFT collection, and Ovie Faruq, also known as OSF, the founder of Rektguy NFT collection, announced that their holders would be gifted a percentage of their company shares. This unexpected move has sparked discussions about the legal risks involved. Pons Asinorum believes that the move is legal as there was no expectation that the holders would receive equity, and clarified that it was a gift.
Logan Paul Launches CryptoZoo NFT Refund Program
Internet celebrity Logan Paul has finally announced a buyback program for the disgruntled holders of CryptoZoo NFTs. The program will be funded by $2.3 million, which Paul is personally committing to repurchasing the NFTs at their original purchase price. This announcement comes a year after Paul promised to refund the investors of the NFT project, and it has received mixed reactions from the community. While some celebrate this as a win, others raise concerns about Paul’s potential “ulterior motives”.
Community Reacts to Logan Paul’s NFT Buyback Announcement
Following Logan Paul’s announcement of the CryptoZoo NFT refund program, the community has had varied reactions. Some members celebrate the news as a positive step towards accountability for celebrities in the Web3 space. However, others are skeptical of Paul’s intentions, with accusations that he is trying to “save his own skin” amidst a lawsuit. It is worth noting that the terms and conditions of the buyback program state that participants are waiving their rights to sue Paul and CryptoZoo.
NFT Execs Discuss On-Chain vs. Off-Chain Storage Options
Executives working in the NFT space have emphasized the importance of carefully considering the types of NFTs that should be stored on the blockchain versus off-chain. Witek Radomski, co-founder of Atlas Development (Enjin), suggests that creators should decide which NFTs deserve on-chain storage, also known as the “vault treatment,” and which can be stored on the cloud. He also presents a hybrid option using platforms like the InterPlanetary File System, which are designed for storage and offer a more flexible solution compared to the Bitcoin blockchain.
Bitcoin Blockchain Hosts Classic SNES Games for Preservation
In a bid to raise the technical bar for Bitcoin Ordinals projects, developers at Ninjalerts have inscribed the Super Nintendo Entertainment System (SNES) emulator on the Bitcoin blockchain. This groundbreaking feat enables the community to play classic SNES games on the network. The decision to preserve these cultural “digital artifacts” on the Bitcoin blockchain stems from the belief that it is the best place to safeguard them for future generations. This initiative is particularly significant given that a study suggests 90% of classic video games are endangered.
These recent developments in the NFT space highlight the growing intersection of technology, creativity, and community engagement. From NFT projects giving away equity to their holders to Logan Paul’s NFT buyback program, the landscape is evolving, and accountability in the Web3 space is becoming more pronounced. Additionally, industry executives are encouraging creators to carefully consider storage options for their NFTs, whether on-chain or off-chain. Lastly, the preservation of classic SNES games on the Bitcoin blockchain demonstrates the potential of blockchain technology beyond financial applications. As the NFT space continues to evolve, it will be fascinating to see how these developments shape the future of digital ownership and creativity.
Analyst comment
Positive news: NFT Projects Giving Away Equity to Holders
Short analysis: The move to give away equity to NFT holders could be seen as a smart move, as it fosters a stronger community and incentivizes investment. However, there may be legal risks involved that need to be considered.
Negative news: Logan Paul Launches CryptoZoo NFT Refund Program
Short analysis: While some view Paul’s buyback program as a positive step towards accountability, others have concerns about his intentions. Mixed reactions from the community reflect skepticism and uncertainty.
Neutral news: NFT Execs Discuss On-Chain vs. Off-Chain Storage Options
Short analysis: Industry executives are emphasizing the importance of considering storage options for NFTs, suggesting a hybrid approach using platforms like the InterPlanetary File System. This highlights the need for careful consideration and flexibility in NFT storage.
Positive news: Bitcoin Blockchain Hosts Classic SNES Games for Preservation
Short analysis: Inscribing classic SNES games on the Bitcoin blockchain is seen as a groundbreaking feat, preserving digital artifacts for future generations. This showcases the potential of blockchain technology beyond finance.
