> That is a lot of word salad. Well legal nuance often is. > Is my understanding wrong? Yes. NFTs can convey ownership of real, personal and/or IP. For exa

> That is a lot of word salad. Well legal nuance often is. > Is my understanding wrong? Yes. NFTs can convey ownership of real, personal and/or IP. For example, take Bored Apes Yacht Club NFTs. If you own a BAYC NFT, then you receive commercial IP rights to an underlying image. Assuming we both reside somewhere in the US, if I were to begin commercially producing products bearing your image, then you individually (as opposed to Larva Labs the company that created the copyrighted image) could sue me for injunctive relief and damages. Alternatively, if someone were to mug you and force you to open your phone and transfer your BAYC NFT to their wallet, it would most likely be considered grand theft because the dollar amount of the property involved. Further, you would also have a remedy in civil law to sue the criminal for the damages. It’s not treated any differently that any other property theft. And of course if you buy the BAYC NFT and later sell it for a profit, the IRS treats it as a capital gain and you have to pay taxes subject to penalties and enforcement action. From the legal perspective most recently Wyoming passed a law creating and establishing the first DAO LLC legal entity, which is a LLC that can be algorithmically managed by smart contracts/holders of NFTs. This further formalizes legal recognition under the law.