May 26, 2024
NFT Collections Offer Company Shares as Holiday Presents to Holders
NFT

NFT Collections Offer Company Shares as Holiday Presents to Holders

In an unexpected twist during the festive season, the founders of two prominent nonfungible token (NFT) collections, “The Plague” and “Rektguy,” have announced plans to distribute company equity to their respective NFT holders. The move has sparked a wave of discussions within the NFT community, with opinions ranging from praise for innovation to concerns about potential legal and regulatory implications.

On December 25th, Pons Asinorum, the founder of “The Plague,” revealed that holders of their NFTs would receive a percentage of company shares based on the number of unlisted NFTs they own. Despite potential legal challenges, Asinorum asserted the legality of the move, stating that the shares were not sold. Consulting with legal experts, the founder claimed that holders did not anticipate receiving company shares when purchasing their NFTs.

Following suit, on January 1st, Ovie Faruq, also known as OSF and co-founder of “Rektguy,” made a similar announcement. Faruq disclosed that Rektguy NFT holders would be gifted equity in their company, Rekt Brands Inc. This gesture was characterized as a token of appreciation to collectors who supported Rektguy as an art project. The co-founder clarified that trading the NFTs would not transfer any equity, emphasizing that the process was meticulously orchestrated to comply with legal standards.

The NFT tracker CryptoSlam reported that The Plague boasts an all-time sales volume exceeding $7 million, while Rektguy has surpassed $28 million in sales. Community reactions to these equity giveaways have been mixed, with some heralding the move as a potential game-changer and others expressing scepticism about its legitimacy.

Azuki’s researcher-in-residence, Waleswoosh, weighed in on the debate, suggesting that the legality of such actions depends on certain circumstances. Waleswoosh highlighted that, in both cases, eligibility criteria were established in the past, and the NFTs were not sold with a clear intention of offering equity.

While some within the community hope that other brands will grasp the implications of this innovative approach, discussions are ongoing regarding the various ways such equity distribution could be implemented. One community member proposed the idea of tying equity to NFTs and trait market share, where a percentage of sales generated would be allocated to specific NFT holders.

As these NFT collections push the boundaries of token ownership, the broader crypto community eagerly awaits how regulators and legal experts will respond to this unique intersection of digital art and company equity. The unexpected move by The Plague and Rektguy founders has certainly ignited a conversation that could shape the future of NFTs and their relationship with traditional business structures.

Image: Wallpapers.com

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