The post CyberKongz Fights Back for NFT Industry appeared on BitcoinEthereumNews.com.

CyberKongz, a gaming-based NFT project, has been issued a Wells Notice by the U.S. Securities and Exchange Commission, raising concerns over its ERC-20 token and blockchain game integration, indicating a potential legal battle might be in the cards. The team said they were “extremely disappointed at the approach the SEC has taken” on X post on Dec. 16, referring to the Well’s notice, a formal SEC warning of potential enforcement. They also pledged to fight back, arguing the result could have major consequences for the web3 gaming and NFT sectors. The SEC has expressed some concern with CyberKongz’s pairing of its ERC-20 token with its blockchain-based game. The SEC’s Division of Enforcement argues in CyberKongz’s case that this setup constitutes a security that has to be registered, much like the stance it took against Ripple. This position, the project argued, highlights a failure to understand blockchain technologies and would create a dangerous precedent across the entire web3 gaming industry. CyberKongz has received a Wells Notice from the SEC. We are extremely disappointed at the approach the SEC has taken towards us, but we are going to stand up and fight for a brighter future that holds more clarity for NFT projects. We have been suffering in silence for the last… pic.twitter.com/lc6hyzUPb0 — CyberKongz (@CyberKongz) December 16, 2024 The SEC’s concerns relate to its view that the 2021 Genesis Kongz contract migration was a primary sale. CyberKongz said this was a baffling interpretation of smart contracts and accused the regulator of failing to make a distinction between technical processes versus actual token sales.  CyberKongz stated that its team has been under the microscope for the past 2 years and has suffered in silence during this period. With a small team and no prior capital raises or massive treasuries, the project will…

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Filed under: News - @ December 17, 2024 6:23 am