NFT Roundup – Sotheby’s, Hollywood, Casinos and Singapore High Court
After a dramatic rise in popularity accompanied by skyrocketing values, growth in NFT sales has plateaued this year amid a brutal crypto winter. It’s pretty obvious that the days of meme-driven NFTs with mullahs are long gone.
So the old ways just won’t cut it anymore. Instead, NFTs must harness the power of the tool to unlock the next level of growth. After all, utility is an important component that will catalyze its mainstream adoption, adding value and functionality to the technology.
For example, luxury brands like Louis Vuitton are partnering with next generation sneaker studios RTFKT, which Nike owns, to release a NFT collection and experience and in the process bring something unique to the NFT sector.
Then there’s an animated, comedy-based, NFT-powered TV series called ‘Krapopolis’ which launched its own NFT Marketplace, where Krap communities can buy, sell and trade Krap’s chicken NFTs, giving collectors access to exclusive content and private events.
There is so much going on in the fast-moving world of NFTs, even in the midst of a downturn, that people find it difficult to keep track of it all. Therefore, to save time, we did all the hard work to bring you some of the most interesting happenings from the world of NFTs. Let’s dive right into it without further ado.
Sotheby’s Hosts “Xperience Digital Art Auction”
The 277-year-old British auction house Sotheby’s is delving deeper into the world of NFTs by hosting the “Xperience Digital Art Auction” on 27 October.
The auction aims to bring together a curated selection of digital art using cutting-edge technologies, from AI-generated art and holograms to generative art that responds to the currency market.
Much to the delight of crypto users, Sotheby’s also accepts crypto payments, including BTC, ETH and USDC, but only from select exchange wallets such as Coinbase, Fidelity, Gemini and Paxos.
NFT’s Going Mainstream: LOTR, Lamborghini and Anthony Hopkins join the bandwagon
Oscar-winning actor Anthony Hopkins is the latest to jump on the NFT train. Hopkins has teamed up with Web3 creative studio startup Orange Comet to create and launch its first NFT series, the Eternal Collection. The collection is inspired by characters Anthony Hopkins has played throughout his career.
“NFTs are a blank canvas to create art in a new format,” is what Hopkins says about NFTs. The initial batch of 1000 pieces of NFTs actually sold out within minutes.
Among the brands, Lamborghini is the latest to come up with an NFT collection through the project called “Epic Road Trip”, which will last from April 2022 to March 2023.
However, the luxury sports car maker is not new to the NFT world, as it has regularly dropped NFT collections to provide unique experiences, a VIP tour and an exclusive premiere of its first-of-its-kind new model in the Metaverse. These NFTs are limited editions, with only 1,963 to be released, each priced at $196.30.
Such is the allure of NFTs that even Warner Bros. couldn’t resist launching an NFT collection, forcing it to release a series of NFTs related to The Fellowship of the Ring movies in collaboration with Eluvio.
Regulators take note: Stop selling NFT securities
Regulator interest in brands selling NFTs is at an all-time high today, but not really in a positive way. Its prime example is the virtual casino Slotie, which has been ordered to stop selling securities immediately to investors, pending proper registration.
State securities boards in Texas, Kentucky, New Jersey and Alabama have accused Slotie of misleading investors and ordered it to stop selling its NFTs to retail investors immediately. In one of those orders, Acting Department of Securities Commissioner Amy Copleton accused the company of misleading potential investors about the sale, saying a batch of 10,000 NFTs sold out within minutes, without evidence.
Slotie, which operates gambling in over 150 virtual casinos, has 30 days to comply with the orders, or the operators face prison terms in addition to fines if they are indicted and convicted.
Earlier this month, Bloomberg reported that the SEC is investigating whether Yuga Labs, the creator of the prominent Bored Ape Yacht Club (BAYC) NFT collection, violated securities laws in its promotion and sale of NFTs.
Singapore is friendly: Treats NFTs as property
While in the US there is still a hotly debated issue of recognizing NFTs as a separate digital asset, NFTs appear to have gained acceptance as a valid form of property in Singapore.
The recent ruling by the Singapore High Court recognizes NFTs as a protected digital asset and a form of legitimate property under a full commercial dispute. This is a first of its kind on NFTs globally.
The the ruling gave NFTs the status of a property with a different value than just records in the blockchain. As such, it defined NFTs as digital assets with corresponding rights, which owners can claim in court, and which courts recognize as collateral.
Based on the premise that NFTs are conceptually distinct from the underlying assets they represent, the purchase of NFTs does not give the buyer all rights, including intellectual property rights, to that asset.
NFT purchasers are granted permission to use, copy and exhibit underlying artwork for specific, limited purposes, including personal, non-commercial use, or to use in connection with online marketplaces for the sale and trade of the NFTs representing artwork, in the most cases. It can also be used with digital and physical artwork to indicate attribution.
But this does not put an end to the regulatory aspect of NFTs, and the courts will face many new questions regarding ownership, possessory interests and intellectual property rights for digital assets such as NFTs.
