The U.S. Securities and Exchange Commission (SEC) yesterday officially issued a 'Wells Notice' to the NFT project CyberKongz, signaling an impending legal action against the project, similar to previous cases of alleged sales of unregistered securities, which could have significant impacts on the gaming token and Web3 gaming industry.
The SEC believes that the issuance of ERC-20 tokens related to blockchain games must first be registered as securities. CyberKongz emphasized that it will defend the Web3 gaming industry and pointed out that this move may be the Biden administration's last attempt to suppress the industry. The SEC's allegations are related to CyberKongz's Genesis Kongz NFT sale conducted in April 2021, but the company clarified that this was merely a contract migration and not an initial sale.
CyberKongz stated that the company's operations largely rely on cash flow generated from its own operations and have never undergone financing. Although it is under law enforcement investigation, the price of CyberKongz NFTs has not been affected, and in the past 24 hours, it has even increased by 11.7%. In the X community, CyberKongz has received vocal support from the founder of the well-known NFT game Axie Infinity, who believes that the Trump administration will end this unfair treatment.
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"MICA Daily｜The SEC issues a law enforcement notice to the NFT project CyberKongz" was first published on (blockchain platform).
