OpenSea, the largest NFT market in the last cycle, has recently not only faced market share loss from platforms of the same nature as MagicEden and Blur, but also faced securities investigations by the SEC. This means that the SEC believes that some NFTs on OpenSea may be defined as securities and therefore need to be investigated. In response to the SEC's move, OpenSea CEO Devin Finzer said at the time that OpenSea would allocate $5 million to defend creators. Yesterday, Stand with Crypto, an advocacy organization led by CoinBase, announced that it would establish a fund to defend creators and stated that the fund would be funded by venture capital institutions a16z and OpenSea.
(OpenSea CEO responds to SEC securities investigation, allocates 5 million Mg to protect NFT creators)
OpenSea responds to SEC Wells notice: will allocate $5 million to defend creators
Back on August 28 this year, OpenSea CEO Devin Finzer said at that time that the SEC had sent a Wells Notice to OpenSea. He said that the SEC’s move would stifle new innovation and affect artists. and announced that OpenSea will allocate $5 million to help NFT creators and developers who may receive similar notices from the SEC pay legal fees.
As early as 2022, the SEC investigated whether Yuga Labs’ NFT Boring Ape and Ape Coin were securities. But it is clear that OpenSea wants to help creators who are relatively independent and unable to defend themselves.
(BNN Bloomberg: The SEC is investigating whether Yuga Labs, Bored Ape NFT, and ApeCoin are involved in securities)
OpenSea and a16z invest $6 million to defend NFT creators
Yesterday, Stand with Crypto, an advocacy organization led by Coinbase, stated on Twitter that it would establish a legal defense fund to protect creators from the SEC’s misleading frame-up. According to the Stand with Crypto website, the fund is backed by law firms including Fenwick & West LLP, Goodwin Procter LLP and Latham & Watkins LLP.
Devin Finzer also stated that OpenSea has committed $5 million to help NFT artists and developers who receive SEC Wells Notices pay legal fees. He compared the joint action of the three industry giants to "a rising tide lifts all boats."
Miles Jennings, a16z’s legal advisor and head of decentralization, also announced the news on Twitter. He said that a16z will donate $1 million and cooperate with top law firms to provide legal advice to those facing SEC investigations or just want to ensure that it is done in a legal and compliant manner. Provide legal services and consulting to artists and creators running NFT projects.
This article Coinbase Initiative defends NFT startup! a16z丶OpenSea promises capital injection first appeared in Chain News ABMedia.
