Following the revelation of a Wells notice from the SEC, CyberKongz finds itself under regulatory scrutiny, triggering concerns about potential securities law breaches concerning its ERC-20 token and blockchain game.
The recent SEC notice has brought to light worries surrounding token issuances lacking proper securities registration.
CyberKongz Takes a Defiant Stance
In response to this development, CyberKongz has decided to push back, expressing disappointment with the SEC’s approach while vowing to fight for more clarity for NFT projects in the future.
“We are deeply unsettled by the SEC’s stance but are committed to striving for a brighter landscape that offers clearer guidelines for NFT initiatives.”
Expressing frustration at the prolonged engagement with the SEC, CyberKongz shared that they have faced unwarranted allegations due to the regulator’s limited grasp of blockchain technologies over the last two years.
The project perceives the recent enforcement action as a politically motivated move by the Joe Biden administration aimed at impeding the crypto industry’s advancement.
Moreover, CyberKongz stressed the inaccuracies in the information provided, labeling the SEC’s action as unjust and harmful to innovation and progress in the sector.
“We anticipate that the new administration will put a stop to this injustice in our industry. Until then, we will advocate for NFT projects across all platforms.”
Community Rallies in Support
Amid the ongoing situation, Jihoz Zirlin, co-founder of Axie Infinity, has voiced support for CyberKongz, expressing confidence that the new administration will halt what they perceive as unwarranted targeting of blockchain projects.
Zirlin remarked,
“Being subject to persecution is a hallmark of being part of a revolution. I stand in solidarity with CyberKongz.”
Impact on CyberKongz NFT Collection
Despite the SEC’s recent Wells notice and concerns raised regarding potential securities law violations, the CyberKongz NFT collection continues to witness a significant uptrend.
As per data from CoinGecko, the collection has experienced a 14.7% surge in floor price within the past 24 hours, reaching an average of 8.20 Ether [ETH], equivalent to $32,982.
This growth underscores the enduring popularity of CyberKongz NFTs, renowned for their distinctive two and three-dimensional social avatars, on the Ronin blockchain.
It is essential to note that CyberKongz isn’t alone in this scenario. NFT platforms like OpenSea and Immutable are also facing SEC scrutiny regarding the classification of digital assets.
While OpenSea has staunchly defended artists’ creative freedom on its platform, Immutable has maintained caution and not reported any enforcement actions thus far.