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But what law is being broken, if NFTs aren't securities?

by lukev 3y ago

yieldcrv 3y ago
crypto consumers should be far more discerning than they are even the term “rug-pull” is not discerning enough, it refers to a dozen distinct behaviors, of which a few would still be illegal while the other many behaviors are just a misalignment of expectations removing liquidity? thats not illegal under either consumer or securities framework and most commonly called a “rug pull”. communities can provide their own liquidity as a feature of the crypto space, and in no space do purchasers have an expectation for liquidity ceasing to continue making press releases or taking down a website and community channels? also not illegal under the consumer or securities framework. taking other people’s provided liquidity out of a staking contract without saying thats whats going to happen would be illegal under both frameworks. that kind of rug pull is theft. collecting funds and promising to do X and then not even attempting it, thats prosecutable under both the consumer and securities frameworks, in more ways under a securities framework
- lukev 3y ago
  The only way to be discerning with respect to most* crypto is not to participate. Even "succeeding" at crypto just means you sold early enough to a greater fool. * jury still out on the couple major cryptocurrencies, though I hope they follow the same path.
  - yieldcrv 3y ago
    The SEC is not the arm of the government to help you feel validated, and I think thats the crux of your dissonance
bonestamp2 3y ago
I don't think NFTs as a whole are breaking any FTC related laws. However, the way that they are marketed or sold could break some laws if the communications are deceptive. For example, a rug pull might be considered illegal under US Law Title 16, Chapter 1, Subchapter B, Part 238.4 "Switch after Sale": https://www.ecfr.gov/current/title-16/chapter-I/subchapter-B/part-238 https://www.ecfr.gov/current/title-16/chapter-I/subchapter-B...

But what law is being broken, if NFTs aren't securities?

by lukev 3y ago

But what law is being broken, if NFTs aren't securities?

crypto consumers should be far more discerning than they are even the term “rug-pull” is not discerning enough, it refers to a dozen distinct behaviors, of which a few would still be illegal while the other many behaviors are just a misalignment of expectations removing liquidity? thats not illegal under either consumer or securities framework and most commonly called a “rug pull”. communities can provide their own liquidity as a feature of the crypto space, and in no space do purchasers have an expectation for liquidity ceasing to continue making press releases or taking down a website and community channels? also not illegal under the consumer or securities framework. taking other people’s provided liquidity out of a staking contract without saying thats whats going to happen would be illegal under both frameworks. that kind of rug pull is theft. collecting funds and promising to do X and then not even attempting it, thats prosecutable under both the consumer and securities frameworks, in more ways under a securities framework

lukev 3y ago
The only way to be discerning with respect to most* crypto is not to participate. Even "succeeding" at crypto just means you sold early enough to a greater fool. * jury still out on the couple major cryptocurrencies, though I hope they follow the same path.
- yieldcrv 3y ago
  The SEC is not the arm of the government to help you feel validated, and I think thats the crux of your dissonance

bonestamp2 3y ago

I don't think NFTs as a whole are breaking any FTC related laws. However, the way that they are marketed or sold could break some laws if the communications are deceptive. For example, a rug pull might be considered illegal under US Law Title 16, Chapter 1, Subchapter B, Part 238.4 "Switch after Sale": https://www.ecfr.gov/current/title-16/chapter-I/subchapter-B/part-238 https://www.ecfr.gov/current/title-16/chapter-I/subchapter-B...