CyberKongz has been the target of an investigation by the U.S. Securities and Exchange Commission. This is not a new entity.
“The SEC’s Division of Enforcement have approached us with very concerning rhetoric that you can not have a token (ERC-20) in tandem with a blockchain game without registering it as a security,” “The project is said in A Statement Post X to Monday.
Wells Notices inform recipients that regulators are considering taking enforcement actions in light of preliminary investigations. The SEC will usually give recipients 30 days after the Wells Notice is served to reply before deciding whether or not to take enforcement action.
CyberKongz’s case could be the subject of a thorough investigation with subsequent charges. “major implications” It said that it will support the Blockchain Gaming Industry. “defend against this stance for the wider space.”
Particularly, projects that combine NFTs with Utility Tokens may be affected. CyberKongz said that it will contest the notice. CyberKongz operates without any venture capital or substantial treasury.
"We have been suffering in silence for the last two years, ever since we first received contact from the SEC," CyberKongz has claimed the regulator as having a monopoly on security. "a complete lack of understanding of blockchain technologies," The result has been "unjust accusations and information inaccuracies."
CyberKongz is not responding to any questions or concerns. DecryptComments are welcome on.
The SEC's concern is centered on the NFT project's April 2021 Genesis Kongz contract migration, which regulators interpreted as a token sale, according to the company's statement. CyberKongz insists that this was only a technological upgrade and not a security offering.
"If they cannot distinguish between a primary sale and a contract migration, what hope do we currently have for a clear regulatory pathway going forward?" It was said that the project would be completed.
CyberKongz, a gaming platform that provides features including randomly generated avatar NFTs in 2D or 3D for use as a game. "play & kollect" Play games online Ronin.
CyberKongz received a notice following similar regulatory scrutiny of NFT platform The Immutable In November, the validity of token sales was also questioned.
"You know you're part of a revolution when you start to become persecuted," Jihoz Zirlin co-founder Axie Infinity. Commenting Click on X. “I stand with CyberKongz.”
Despite the revelation, the project's floor price remains steady at 8.2 ETH ($32,800), up 14.4% over 24 hours, CoinGecko shows.
Sebastian Sinclair edited the book