CyberKongz receives SEC Wells Notice, vows to fight for NFT innovation

CyberKongz receives a Wells notice from the SEC, signaling potential securities law violations.
Despite regulatory scrutiny, CyberKongz NFTs have seen a 14.7% increase in floor price.

As a seasoned analyst with over two decades of experience in the financial industry, I have witnessed numerous regulatory battles between traditional markets and innovative sectors. The latest saga unfolding between CyberKongz and the SEC is no exception to this pattern.

CyberKongz is under close examination by regulators following their disclosure of receiving a Wells Notice from the Securities and Exchange Commission (SEC).

This situation has sparked worries regarding possible breaches of securities laws concerning its ERC-20 token and the related blockchain game.

This issue emerges because the Securities and Exchange Commission (SEC) has emphasized worries about token distribution that doesn’t comply with the necessary registration as securities.

CyberKongz decides to fight back

Expressing distress on the same, the project said in an X post,

We’re really unhappy with the SEC’s stance on our case, but we’ll face this challenge head-on, striving to secure a clearer path forward for NFT initiatives that promises a brighter tomorrow.

Further in the post, CyberKongz expressed frustration over their prolonged engagement with the SEC.

For the last two years, they’ve been dealing with unfair allegations because the regulator hasn’t grasped the intricacies of blockchain technology.

The project contends that the latest regulatory move by the Biden administration may be an effort, driven more by politics than genuine concerns, aimed at stifling the expansion of the cryptocurrency sector.

Furthermore, CyberKongz underlined discrepancies in the data presented. They contended that the action was unfair and potentially harmful to the advancement and growth within the sector.

Our hope is that the incoming government eliminates the injustice we’ve faced in our sector. Until that happens, we’re determined to advocate for NFT initiatives across all platforms.

Community stands in support

Amidst this ongoing concern, Jihoz Zirlin, co-founder of Axie Infinity, has shown support for CyberKongz.

He showed assurance that the fresh leadership will bring a halt to the perceived oppression experienced by blockchain initiatives.

Zirlin said,

It’s clear that you’re involved in something groundbreaking when you begin to face opposition. I align myself with the CyberKongz.

Impact on CyberKongz NFT collection

Even though an SEC Wells Notice was issued lately, pointing towards possible breaches of securities laws, our NFT collection continues its steady growth trajectory.

Based on the data from CoinGecko, I observed a significant jump of approximately 14.7% in the floor price of Ether within the last 24 hours. This surge brought the average price to around 8.20 ETH, which translates to roughly $32,982.

As an analyst, I’m observing a significant surge in popularity of the CyberKongz NFTs, particularly noted for their distinctive two and three-dimensional social avatars, within the Ronin blockchain ecosystem.

For those who might not know, it’s important to note that CyberKongz isn’t alone in facing scrutiny. Digital asset marketplaces such as OpenSea and Immutable are also under close examination by the Securities and Exchange Commission regarding the categorization of these digital assets.

Although OpenSea champions the artistic creativity on their platform, Immutable approaches with caution, as they haven’t taken any enforcement actions yet.

2024-12-18 07:19

CyberKongz decides to fight back

Community stands in support

Impact on CyberKongz NFT collection

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