NBA Top Shot Moments nonfungible token (NFT) may be considered a security. Because it meets requirements under US security laws. According to documents filed with the court on Feb. 22,
The decision comes as federal judge Victor Marreo rejects a motion from Dapper Labs CEO Roham Gharegozlou to drop a class action lawsuit alleging NBA Top Shot NFTs are securities. and when the petition was rejected The court allowed the case to continue, and Dapper Labs now has 21 days to respond to the verdict.
for judgment The judge reviewed the Howey Test, which determined whether NFTs qualify as investment contracts under US securities law. according to documents submitted to the court Transactions designated as investment contracts are considered securities.
“Finally, the court’s conclusion that what Dapper Labs offers is an investment contract within Not all NFTs offered or sold by any company. will be considered as securities Each project must be assessed on a case-by-case basis.”
A class action lawsuit was filed in May 2021 by plaintiff Jeeun Friel for selling NFTs as unregistered securities. It also alleges that NBA Top Shot deliberately prevents collectors from making withdrawals until the end of the month. to inflate the market value of the platform
A spokesperson for Dapper Labs said: “Today’s order The court rejected the defendant’s motion to dismiss the motion only in the trial stages of the case. did not conclude that the plaintiff was right and not a decisive decision on the benefits of the case There are times when consumer products as well as art and collectibles such as basketball cards. They are not securities under federal law. We are confident that Moments and other collectibles, both digital and otherwise, will. and looks forward to vigorously defending our position in court as the case continues.”
According to Dapper Labs, NBA Top Shot generated over $230 million in NFT sales as of February 2021.
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