NFT

Despite the current prevalence of NFTs, it is often unclear what legal rights they convey to the new owner upon resale. Owners of copyright and trademark assets underlying NFTs may claim legitimate rights that conflict with those that NFT owners believe they possess.

Many crypto investors – and not just speculators, celebrities, and the wealthy – have suffered major losses in the crypto market this month. As volatility grips the cryptocurrency world, two relatively lesser-known cryptocurrency coins—TerraUSD stablecoin (UST) and its linked Terra Luna token—have fallen into serious trouble.

Interest in non-fungible tokens, commonly referred to as NFTs, reached an all-time high over the past year. NFTs are commonly produced from digital art, collectibles, fantasy and esports, static images, memes, video clips, audio files, and a growing number of other media. These use cases are trendy and potentially lucrative, luring many celebrities and social media influencers into minting, investing, and promoting NFTs on their social media feeds.

Recently, more and more companies are looking to leverage non-fungible tokens (NFTs) to generate funding. NFTs’ adaptability, flexibility, and structure allow for the authenticated transfer of ownership of unique goods on the blockchain and make them a viable alternative to traditional and corporate venture capital, debt financing, and equity sales as a means for raising capital.

StockX is a leading online sneaker and streetwear marketplace that, like dozens of other retailers, recently plunged into the NFT pool. Earlier this year, StockX announced its VaultNFT collection of digital avatars of real-world sneakers. Not long afterward, Nike also ventured into the NFT universe when it mobilized RTFKT Studios, which it had acquired in late 2021.

On March 12, after weeks of online rumors and speculation, Yuga Labs, the company responsible for the Bored Ape Yacht Club (BAYC) and the Mutant Ape Yacht Club (MAYC) NFT collections announced its acquisition of CryptoPunks and Meebits from the well-known mobile software company Larva Labs.

How much privacy should individuals be granted when it comes to financial transactions involving cryptocurrencies and wallets? Should that expectation of confidentiality change if the government believes a certain amount of disclosure could uncover crimes such as money laundering or the financing of terrorist attacks?

The right of resale provides artists an important revenue stream by entitling them to receive a share of the revenues whenever an owner or collector resells their original creations.