- NFT collections ‘The Plague’ and ‘Rektguy’ announce equity gifts to their NFT holders, sparking discussions on legality and innovation.
- The founders of these projects have consulted legal advisors to ensure compliance with regulations while implementing these novel strategies.
Legal Innovation or Risky Gamble? NFTs Take a Bold Leap Forward
In a groundbreaking move, two nonfungible-token (NFT) collections, ‘The Plague’ and ‘Rektguy,’ announced plans to allocate company shares to their NFT holders, stirring discussions about the potential legal implications and the future of equity distribution in digital assets.
The Plague’s Bold Equity Allocation
Pons Asinorum, the founder of ‘The Plague’ NFT collection, declared that holders of their NFTs would receive a percentage of the company shares based on the number of unlisted NFTs they possess. This move, potentially fraught with legal and regulatory risks, has been deemed lawful by the founder after consulting several lawyers. The founder emphasized that the shares were not sold but given as gifts, with no initial expectation from NFT buyers to receive company equity.
On Christmas morning The Plague NFT gave to me….
Equity (shares) in their company!
Yes, you read that right. Real shares, in our company.
Every Frog NFT holder as of 10 minutes ago will be allocated a percentage of shares based on the number of unlisted frogs they are… pic.twitter.com/zHVqeq4dyt
— Pons Asinorum (@Pons_ETH) December 25, 2023
Rektguy’s Unique Approach to Collector Rewards
Similarly, Ovie Faruq, the co-founder of ‘Rektguy,’ announced that their NFT holders would receive equity in ‘Rekt Brands Inc.’ as a token of appreciation for their support of the art project. Faruq clarified that trading Rektguy NFTs wouldn’t transfer equity rights and stated the legality of this initiative.
On 4th December 2023 we announced that a surprise snapshot of Rektguy holders was taken on 12AM EST on 26th October 2023.
We are delighted to reveal that holders at the time of snapshot will be gifted equity in our company, Rekt Brands Inc.
Rekt Brands owns and controls… pic.twitter.com/twPkwrnfvt
— OSF (@osf_rekt) January 1, 2024
Both ‘The Plague’ and ‘Rektguy’ have garnered significant sales volumes, with ‘The Plague’ achieving over $7 million and ‘Rektguy’ surpassing $28 million. These numbers reflect the growing interest and potential of their respective NFT markets.
Legal Perspectives and Community Reactions
The announcements have sparked varied reactions within the NFT community, ranging from excitement about potential game-changing developments to skepticism about their practicality. Azuki’s Researcher in Residence, Waleswoosh, believes that these equity gifts are legal under specific circumstances, primarily since the criteria for eligibility were established in the past, and the NFTs were not originally sold with the promise of equity.
As the NFT sector continues to evolve, these initiatives highlight innovative ways NFT projects are exploring to add value and engage their communities. The approach taken by ‘The Plague’ and ‘Rektguy’ could set precedents for how NFTs intertwine with traditional concepts of company ownership and shareholder rights.
Cointelegraph reached out to the project founders for further comments, but no immediate response was received. This development marks a significant moment in the intersection of blockchain technology and traditional corporate structures, potentially paving the way for new forms of digital asset ownership and community participation.