Animation : NFT Funded animated series fined $1M SEC by Kevin Jackson

I'm just surprised that it didn't happen sooner.

There's been debate about whether crypto and NFTs should be subject to the SEC for a while. Crypto supporters say coins are currency, not a security, but when you treat them as investment opportunities, you're in a gray area. same thing with NFTs, and it looks like they were definitely promising returns in a market that couldn't sustain itself.

So, you can do this:

To finance the production, organizers created 10,420 NFTS and raised $8 million by selling them. According to the SEC’s release, the tokens sold out in 35 minutes.

But not this:

touted that the price of their NFTs could increase, and took other steps that led investors to believe they would profit from selling the NFTs in the secondary market

Okay. But I am still impressed by the first quote about the 10,420 NFTs raising $8m. Why can't I understand how to do this for my projects? Hmmh!

Geoff Hall im wondering the same thing. I need to understand how this works.

Kevin Jackson please let me know what you find. I’d love to know more about creating NFTs and how to use them as currency.

The thing with NFTs is that they can just as quickly lose their value minutes after being purchased.

I won't name names. But, a particular political figure famously made a HUGE amount of money selling NFTs that featured himself as various "Heroes."

His "fans" bought a crap ton of these things (They were sold for $99.00 each, USD)

The problem came when folks failed to read the fine print which stated, despite said person's claims to the latter, that the NFTs were not guaranteed to increase n value-PERIOD. And, it was highly likely the value of the NFT could decrease immediately after purchase.

It was also suggested by a few news sources that the whole thing was a front for a money laundering scheme.

Long story short: a LOT of people lost money and may have no chance for legal recourse because of the fine print.

I will be creating digital trading cards for an upcoming project so people who subscribe to my upcoming newsletter can purchase and download and I will happily sign when presented to me at a signing event or Con.

I have decided to NOT list the cards as NFTs.

Elaine Haygood Hi Elaine, keep us posted on how the trading card initiative goes, please.

Geoff, please don't get into NFTs now. The bubble has burst.

Thanks for sharing @Kevin! Incredibly important topic, especially right now when people are looking to do more and more things independently!

This is encouraging and depressing simultaneously, Raised 8mn via NFTs wow !! and GOVT is cracking down on these investments

One of the reasons the SEC has gotten involved is that you have to file with them if you're looking to raise that much capital.

Suppose you raise $5M or less. You file a form that basically states that the money you're raising doesn't fall under their jurisdiction because you're raising $5M or less.

These guys raised $8M. The SEC immediately takes a look at the transactions and they have stringent rules about what you can offer in return for the money raised (i.e.: equity in the company/production, stock, etc.).

NFTs are NOT considered a safe investment-Especially if there's no guarantee of a secondary market for them.

I would suggest ANY filmmaker looking to raise money check out the SEC site just to ensure you don't nd up on the wrong side of things.

That's crazy!