Investing.com – The market for non-fungible tokens (NFT) is experiencing unexpected hype, which leads to some strange developments.
In June Atsuko Sato sold the NFT with the original Kabosu Doge meme for the proud price of 1,696 ether. At that time, the sales value was the equivalent of $ 4 million. This is probably one of the most expensive pictures in the world that depict a more or less ordinary dog - the community may forgive me for this statement.
The buyer is none other than PleasrDAO, an organization whose members consist of the DeFi sector as well as early NFT artists and digital artists. The aim of the association is to promote the dissemination of digital art, but also to finance non-profit projects.
Dogecoin popularity is said to boost NFT sales
The Kabosu NFT, which was acquired for $ 4 million, will now be minted $ 16 billion DOG tokens, which can be purchased from this month. With the hype surrounding Dogecoin and NFTs, it can be assumed that an originally simple picture of a dog will quickly turn into three-digit millions – unimaginable.
PleasrDAO stated that a fifth of the tokens can be traded on miso at the start. The exchange on decentralized exchanges (DEX) is then possible, while the price of the token should be based on the performance of the DOGE.
If, as expected, the $ DOG token meets with great interest and a strong community develops around it, PleasrDAO will also auction the original NFT from Kabosu at the appropriate time – certainly at a multiple of the original 4 million dollars.
SEC urges regulation of Ethereum NFT markets
It is possible that the project will fail, which is difficult to imagine in a time of CryptoPunks and CyberKongz. But the US Securities and Exchange Commission has already targeted the NFT market. This could soon slow down the business of the platforms, which are predominantly based on Ethereum.
Hester Pierce works for the SEC. She has been referred to as “Crypto Mom” time and again in the past because she is an advocate of blockchain technology. She recently warned against selling fractions of an NFT. But it is precisely this business idea that has recently become more and more popular.
You buy a well-known NFT for sum X, chop it up into many pieces of the puzzle and then sell them for a profit – similar to the Berlin Wall.
Hester Pierce said:
“When selling fractions of individual NFTs, care should be taken not to create something that is an investment product or security. The definition of securities can be quite broad.”
The current legal dispute between the SEC and Ripple Labs shows how well she hits the mark with her last statement, as you can read in the article. In case of doubt, a court must then clarify what is considered a security in the field of the crypto industry. There obviously does not seem to be a clear definition.
From Marco Oehrl
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy / sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.