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Some of Dapper Labs\u2019 NFTs might be considered securities, according to a federal judge this month, specifically its NBA Top Shot NFTs. <\/p>\n

This news follows a motion to dismiss from the tail-end of a class action lawsuit against the company and Roham Gharegozlu \u2013 the company\u2019s CEO. Namely, the suit held that both had violated the country\u2019s federal securities laws by offering its NBA Top Shot Moments NFT series.<\/p>\n

By not registering these first with the United States Securities and Exchange Commission, Dapper Labs breached securities regulations according to this suit.<\/p>\n

While this was the premise, it was the District Judge\u2019s view that allegations under Howey (test for defining securities) were \u2018facially plausible\u2019, which has raised the broader question of these NFTs being securities.<\/p>\n

While Dapper Labs\u2019 $FLOW Tokens were not considered securities, they were necessary to the whole issuance process. Dapper Labs had attempted a motion to dismiss at this point, stating that these NFTs were just digital collectables, not securities.<\/p>\n

This was dismissed by the presiding judge, however, who added that these digital assets passed the first and second prongs of the Howey test. The first is an investment of money, while the second referred to the common enterprise, which could include the pooling of investor funds, which has occurred in legal cases against Telegram and Kik in the past.<\/p>\n

The judge concluded that the purchaser\u2019s fortunes were tethered to Dapper Labs and NBA Top Shot\u2019s broader success. At the same time, the platform\u2019s underlying token would be pooled for longer-term investment, maintenance and fundraising.<\/p>\n<\/p><\/div>\n

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Some of Dapper Labs\u2019 NFTs might be considered securities, according to a federal judge this month, specifically its NBA Top Shot NFTs. This news follows a motion to dismiss from the tail-end of a class action lawsuit against the company and Roham Gharegozlu \u2013 the company\u2019s CEO. Namely, the suit held that both had violated […]<\/p>\n","protected":false},"author":3,"featured_media":51482,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.blockchaingamer.biz\/wp-content\/uploads\/2020\/02\/dapper-labs-logo.png","fifu_image_alt":"","footnotes":""},"categories":[575],"tags":[],"class_list":["post-51481","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-gaming"],"yoast_head":"\n