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Boves
1.5K posts
Who needs a squad for this weekend's #HCSSLC25 Major Qualifier? 👀
Respond with your info to find teammates!⬇️
🔗 aka.ms/HCS-Reg
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When I scheduled my moving company, they told me I could expect it to take roughly 5 days to get my furniture at my new place. It's been 26 days and I'm still sleeping on an air mattress and can't get a direct answer of when to expect my bed/desk and everything to get here 🙃
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@travalacom @JoinGrapeCoin Dream destination: Grape Island (or Aruba)! 🍇🌴
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NEW INTEGRATION ALERT😍
$GRAPE is NOW LIVE on Travala!🍇
Join the GIVEAWAY & Win $4,000 in Travel Credits!✈️
4🏆- $1,000 each!
How to join:
1️⃣ Follow @JoinGrapeCoin & @travalacom
2️⃣ ❤️ & 🔁
3️⃣ Comment your dream destination below 🏖
Ends soon! - Don't miss out!
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Boves retweetledi
Pepe is ready for mint date reveal...
Are you Zentient? 👀
#LFZen #ZentientNFT #0xpolygon #Polygon #NFTs
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We haven't even announced mint date but we're already in stores... 👀
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Something's happening... 👀
Zentient NFT@ZentientNFT
We haven't even announced mint date but we're already in stores... 👀
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🔥 1 More Giveaway Before Mint Giveaway 🔥
1 @RingRunnerz NFT
💜 , ♻️, share, and tag 3
Must Join 3Dadz discord and say thanks to @BlockeDxUser to win!!!
24 hours(is twitterpicker working yet)
discord.gg/aRJDEHEN
We have a few WL left as well!
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Congrats to our very first giveaway winner @PaxFSOCS 🥳🎉👏
Please DM us your wallet address
Thanks to everyone who entered❤️
More #NFTGiveaways otw🚀
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Some Thoughts about Securities
Disclaimer - This is NOT advice, this is my opinion and thoughts on the space we are in based on some recent charges by The SEC, and commentary on what they have said.
With Stoner Cats recently being charged by The Sec, I believe we should be talking more about Incorporated Company's (Inc's or PLC's), securities, dividends etc.
The info about Stoner Cats is out there, but essentially they created an expectation of the value of their NFT's increasing. And accepted the fine they were hit with.
The questions that come to mind are what is a security and what sort of things could put you and your holders at risk?
Different countries will define securities differently, but most are led by the decisions made in the US. Most markets and companies want to be traded on the US stock exchange, for numerous reasons.
A security is a fungible, negotiable financial instrument that represents some form of financial value, usually in the form of a stock, bond or option.
Or a simpler explanation could be if an investment of money is made in a business with the expectation of a profit to come through the efforts of someone other than the investor.
But NFT's are non fungible... just because they have a different image doesn't make them non fungible. Not on it's own. It's what else that NFT represents. And very often they represent tokens.
For NFT Businesses/Projects, if they are at risk they are likely doing one of a couple of things.
- They will be treating NFT's like stocks and/or shares, or like a Inc's.
- Alternatively, they will be setting an expectation that the value of the NFT will increase. Like Stoner Cats.
What actions could make an NFT business or project be seen like this?
- an expectation for the value of the NFT to increase
- a share of the business/project for purchasing the NFT
- dividend pay outs (revenue sharing)
- wash trading
- insider trading
- floor incentives (minimum listing or purchase amounts)
- burning supply
An Expectation Of Value Increasing with you as a holder doing any work is one of the key measures of the Howey test.
As a founder, there are many ways you can insinuate an expectation of an increase in value. Many ways. You don’t even need to say the words investment to be charged, ask Stoner Cats.
Partial ownership of the business/project for purchasing could make the NFT a Share, and the business effectively an Inc.
Revenue sharing is essentially a Dividend pay out. Holders get X amount of royalties shared between them every quarter, for example.
Wash Trading could be you agreeing to buy another projects NFT’s if they buy yours. It could be you buying your NFT’s. It could be encouraging and incentivising holders to list at a certain price. Anything that misrepresents the value of the business to an external person can be seen as wash trading.
Insider Trading, using your knowledge to make a profit, or help others make a profit. Nate Chastain is one example of this, the OS head of product that is serving jail time.
Floor Incentives, READ THE ABOVE. Floor incentives are the business/project artificially increasing demand and the price of the floor. STOP RUNNING FLOOR INCENTIVES. This seems to me that it could make someone think the value of their NFT go up, without work from them.
Burning Supply to reduce the supply and increase the demand. If incentivised, this could be market manipulation to impact the price and could be considered wash trading. I think it's worthy of it's own mention.
This is by no means a comprehensive list of things that could be seen a certain way by a regulatory body. I am not a financial lawyer and have no qualifications. I am reiterating that this is NOT advice. Please take it as it is meant, my opinions and thoughts.
Where are we at now?
There is very little regulation that is specific to crypto, NFT's or Web3. What regulation there is, wherever you live, governs what the rules are. For advertising, financial, gambling and tax purposes.
We are having to be reactive. When a project accepts (and doesn't contest) the charge from The SEC, pays the $1,000,000 fine and burns all the stock they hold of their NFT's, you can assume they have done it off of the back of legal advice.
There are cases out there that we can learn from. They are becoming more regular. If you are concerned, or looking to protect yourself, please seek some form of legal guidance. From a qualified professional.
Does this mean we can't run promotions? No it doesn't. It means we have to think carefully about the ramifications of the type of promotion we want to offer.
Some key things for me
- Is there an expectation or impression that value will go up? Is the holder, holding because they want to make money from you?
- Are prices or supply being manipulated in any way?
- Is the Business/Project following local regulations?
I welcome more opinions and thoughts on this matter, especially from those with a background in this area.
And you know the deal, comment, like, repost (follow if you aren't) if you have enjoyed, or found value in this. That's worth a lot to anyone that creates content. Thank you for reading 🙏💚
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