SEC drops Yuga Labs probe, Trump files NFT marketplace trademark: Nifty Newsletter
In this week’s newsletter, the US Securities and Exchange Commission (SEC) has dropped its investigation into the non-fungible token (NFT) company Yuga Labs, a company owned by US President Donald Trump filed trademarks for a metaverse and an NFT marketplace, and gambling platform DraftKings plans to settle its NFT lawsuit for $10 million. In other news, Hamster Kombat’s newly launched layer-2 network aims to support Web3 gaming.
Yuga Labs says SEC dropped its investigation into NFT firm
NFT firm Yuga Labs said the SEC dropped its investigation into the company. The NFT firm said in a post that after three years, the agency had finally closed its investigation into Yuga Labs.
The company said this was a win for NFTs and creators, pushing the ecosystem forward. “NFTs are not securities,” Yuga Labs added.
The regulator’s investigation began in October 2022 under the former SEC chair Gary Gensler. It was part of a wider probe into NFTs, creators and marketplaces to see whether NFT assets could be classified as securities.
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Trump company files trademarks for branded metaverse, NFT marketplace
Trump-owned company DTTM Operations filed for trademarks for the word “TRUMP” in connection with a metaverse and NFT marketplace. The filing described a Trump-themed virtual world where users could shop for physical and virtual goods, dine in a restaurant and enjoy simulated luxury transports like limousines and aircraft.
The company also plans an NFT marketplace. However, the filing added a caveat that only content permitted by the president will be included.
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DraftKings settles class-action lawsuit over NFT marketplace for $10M
Gambling platform DraftKings agreed to pay $10 million to settle a class-action lawsuit from its NFT buyers. On Feb. 28, a federal court judge granted a preliminary settlement motion to settle all claims for $10 million.
The deal would split the funds between members of the class-action suit. If approved, the settlement would finally end the suit, which started in 2023. The lawsuit alleged that the company sold NFTs that were investment contracts under securities laws and were unregistered securities.
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Hamster Kombat says Season 2 is ‘more than a game’ amid layer-2 launch
Web3 game Hamster Kombat expanded its ecosystem by launching a layer-2 blockchain called the Hamster Network. The L2, based on The Open Network (TON), aims to support Web3 games and decentralized applications.
Hamster Kombat said the network would allow developers to launch games entirely onchain. “We’re not talking about centralized games that store only specific pieces of data or NFTs onchain,” the team told Cointelegraph. They added that they would allow games to place their “entire logic” within smart contracts.
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Thanks for reading this digest of the week’s most notable developments in the NFT space. Come again next Wednesday for more reports and insights into this actively evolving space.
