Dapper Labs has asked a Manhattan federal court to dismiss a lawsuit filed by investors claiming NBA Top Shot Moments collectible tokens are securities.
NBA Top Shot Moments are blockchain-based digital cards that depict basketball players with their best moments. The collection was developed with input from the National Basketball Association (NBA), which sees non-fungible tokens (NFTs) as another way to engage with sports fans.
In May 2021, many owners of NBA Top Shot Moments sued Dapper Labs and its chief executive Roham Gharegozlou for selling unregistered securities that violated US law. Some claims have been dismissed by the court, others are still pending.
As Dapper Labs pointed out in its motion to dismiss, NFTs are separate collectibles that do not have the characteristics of securities and do not give the right to control the share of any enterprise. According to the developers, calling basketball or baseball cards securities and filing lawsuits because of this is contrary to common sense.
According to the Blockchain Gaming Alliance (BGA), for the third quarter of 2021, the revenue from games using NFT amounted to $2.32 billion. Given the rapid development of the industry, sports organizations have become increasingly interested in collectible tokens. Last year, American football player Tom Brady also spoke about plans to launch the Autograph platform for issuing and selling NFTs.
To prevent money laundering through collectible tokens, last year Dapper Labs announced a partnership with Chainalysis, an analytics company, to track suspicious NFT transactions.
Source: Bits
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