MICA Daily | SEC issues enforcement notice to Non-fungible Token project CyberKongz

The US Securities and Exchange Commission (SEC) officially issued a 'Well Notice' to the Non-fungible Token project CyberKongz yesterday, indicating that legal action will be taken against the project soon. The reason is similar to previous examples, which is suspected of selling unregistered securities. This may have a significant impact on game tokens and the Web3 gaming industry.

The SEC believes that the issuance of ERC-20 tokens related to blockchain games must be registered as securities. CyberKongz emphasizes defending the Web3 gaming industry and points out that this may be the last attempt by the Biden administration to suppress the industry. The SEC's allegations are related to the Genesis Kongz Non-fungible Token sale conducted by CyberKongz in April 2021, but the company clarifies that this is only a contract migration, not the initial sale.

CyberKongz stated that the company's operations mostly rely on the cash flow generated by its own operations and has never conducted financing. Although it is under investigation by law enforcement, the price of CyberKongz Non-fungible Tokens has not been affected. In the past 24 hours, it has even risen by 11.7% in the X community. CyberKongz has received support from the founder of the well-known Non-fungible Token game Axie Infinity, who believes that the Trump administration will end this unfair treatment.

Disclaimer: The article only represents the personal views and opinions of the author, not the views and positions of Gate.io. All content and opinions are for reference only and do not constitute investment advice. Investors should make their own decisions and trades, and the author and Gate.io shall not be held responsible for any direct or indirect losses incurred by investors in their trades.

〈MICA Daily | SEC issues enforcement notice to Non-fungible Token project CyberKongz〉This article was first published in "Block Times".

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