Subscribe to Bankless or sign in
DraftKings is shutting down its NFT business "effective immediately," the company said in an email to customers.
What's the scoop?
- Immediate Shutdown: DraftKings has decided to discontinue Reignmakers and its NFT Marketplace due to a class action lawsuit alleging its NFTs were unregistered securities.
- Legal Challenges: This year, DraftKings faced multiple lawsuits claiming its NFT sales violated securities laws.
- Initial NFT Venture: DraftKings entered the NFT market in 2021, inspired by the success of NBA Top Shot, and launched an in-house marketplace.
Bankless Take:
NFTs may prove more difficult than tokens to establish legal classification for. While most, if not all, corporate NFTs launched as an avenue to profit off of 2021’s speculative craze, as NFTs increasingly become a new medium to create, consume, and share media, the breadth of their application will surely provide a challenge for regulators. This has already caused legal troubles for the industry on multiple occasions, like with Stoner Cats and Impact Theory.
1
0
