Dapper Labs case settled smoothly: Flow is confirmed to be a decentralized blockchain, NBA Top Shot NFT is not a security

In 2021, Flow blockchain and NBA Top Shot developer Dapper Labs were sued for allegedly selling NFTs as unregistered securities. Jeeun Friel, the lead plaintiff in the case, stated in the charging documents Calling "NBA Top Shot Moments" a security on the grounds that its value increases with the success of the project, Dapper Labs should register with the U.S. Securities and Exchange Commission, but Dapper Labs failed to do so, thus violating U.S. securities laws.

After a long litigation process, this case has finally reached an important milestone: Dapper Labs has successfully reached a settlement agreement with the plaintiff.

Dapper Labs co-founder and CEO Roham Gharegozlou said: "Dapper Labs is pleased with the outcome of this settlement agreement, which marks an important step forward for Dapper Labs and the Flow community. Jane In short, legal clarity not only allows Dapper Labs to focus on its core mission and continue to provide users with a better service experience, but also provides a vibrant community of developers, partners and entrepreneurs on the Flow chain. Greater freedom allows them to confidently create breakthrough Web 3 applications for consumers around the world.”

It is worth mentioning that this case also confirms that Flow is a fully decentralized, permission-free, and A public blockchain that is not controlled by Dapper Labs. Flow will continue to work toward building an on-chain world that allows individual users to own their own data, digital assets, and online identities, with the goal of ensuring that digital communities can thrive in an open, decentralized environment. On the Flow blockchain, creators build content for the community without taking the risk of platform dependency, helping people explore Web 3 easily and safely.

Legal Clarity Paves Way for Dapper Labs’ Continued Growth and Innovation

Dapper Labs is the creator of the Flow blockchain, a decentralized blockchain Blockchain, designed for the next generation of digital assets, applications and games. Dapper Labs' mission is to make Web3 easily and securely accessible to everyone, while striving to foster innovation and build a world of thriving digital communities.

With the successful settlement of this case, it not only consolidates Dapper Labs’ commitment to innovation and decentralization in the field of digital collectibles, but also further demonstrates that the NBA Top Shot Moments it provides are not securities under U.S. federal law. . With further legal clarity, it also paves the way for Dapper Labs’ continued growth and innovation.

In fact, during the previous litigation process, NBA Top Shot still made good progress. Data provided by Dapper Labs shows that more than 27,000 independent collectors have purchased collection kits or Moments on NBA Top Shot since January 1, 2024; NBA Top Shot’s user conversion rate since November 2023 Increased fivefold (Note: User conversion refers to the conversion from a visitor to the website to a first-time purchaser); in the fourth quarter of 2023, the number of independent collectors who spent an average of more than $1,000 per week on NBA Top Shot was 135, In the first quarter of 2024, this number increased to 241, an increase of 78%. In addition, Dapper Labs launched Fast Break, a daily game using NBA Top Shot Moments that has resonated greatly with the community, with thousands of active players interacting with NBA and WNBA game events every day. It is worth mentioning that in April this year, NBA San Antonio Spurs star Bunyama’s 1-of-1 Moment was successfully sold for a high price of US$145,000.

Other key points in the case settlement agreement

1. Decentralization: Flow blockchain as a fully decentralized public area Running on the blockchain ensures that it can continue to operate without Dapper Labs, providing a strong and independent ecosystem for users and developers.

2. Market expansion: Starting from March 17, 2022, four new markets have been authorized to display and sell NBA Top Shot Moments. This market expansion has also been supported by the NBA and The full support of the NBA Players Association provides collectors with more flexibility and opportunities to trade and enjoy NBA "highlights."

3. Enhanced user experience: The current payment and withdrawal system of NBA Top Shot Moments has been optimized and improved, thanks to cooperation with Checkout.com and Fortress Blockchain Technologies, Inc. Thanks to the company's cooperation, users can now process withdrawals within 2-10 working days.

4. Compliance and Education Commitment: Dapper Labs has implemented a mandatory annual training program for all employees, focusing on requiring everyone to comply with U.S. federal securities laws and ethical marketing practices, This initiative can ensure project transparency, legality and safeguard community interests.

5. Flow tokens and ecosystem growth: The remaining Flow tokens will be transferred to the Flow Foundation wallet, and Dapper Labs will give up control of the tokens in order to support Flow The continued growth and decentralization of the ecosystem.

The above is the detailed content of Dapper Labs case settled smoothly: Flow is confirmed to be a decentralized blockchain, NBA Top Shot NFT is not a security. For more information, please follow other related articles on the PHP Chinese website!