Yuga Labs, creators of the acclaimed Bored Ape Yacht Club and Mutant Ape Yacht Club, have declared their intention to exclude their NFT collections from any marketplaces that fail to honor creator royalties. This move aims to support the continued development and innovation of content creators in the NFT space by ensuring they receive the royalties they are entitled to. The decision impacts specific collections that employ a copyright filter, including the likes of Sewer Passes and Otherside.
Yuga Aligns with Royalty-Supporting Marketplaces
This strategic position coincides with the launch of Magic Eden’s Ethereum-based marketplace, which has implemented contract-based royalties. Yuga Labs hopes this will guide the sector towards a more creative-centric Web3 ecosystem. The company’s stand has made clear their commitment to the financial sustainability of content creators within the NFT community.
South Korea Ponders Legal Classification of NFTs
Meanwhile, in South Korea, financial authorities are gearing up for discussions with the Chairman of the U.S. Securities and Exchange Commission to ascertain the status of NFTs as crypto assets. The country’s forthcoming laws have currently excluded NFTs from this category, citing lower associated risks due to their predominant use for trading rather than financial investment. The talks aim to achieve a consensus on the legal definition of NFTs and their classification within the financial market.
Fraudulent NFT Schemes Investigated in the US
In the United States, fraudulent activities revolving around NFTs are under investigation after an Air Force cyber analyst was charged with defrauding investors through two Solana-based NFT collections. The individuals involved face serious charges, including wire fraud and money laundering, and could receive prison sentences if convicted. They allegedly deceived investors into sending over $300,000 worth of crypto assets by falsely claiming collaborations with esteemed NFT projects.
The accused had reportedly converted the cryptocurrencies collected from investors into dollars before the price of their NFTs plummeted following the revelation that there was no such collaboration. This case highlights the importance of due diligence in the burgeoning NFT market.
