Hester Peirce, a SEC commissioner with an interest in cryptocurrencies, warns that trading some digital assets could be banned. She went on about, inter alia, non-convertible tokens (NFTs) and whether they can be considered securities.
Hester Peirce of SEC: NFT were supposed to be non-interchangeable
NFT are non-interchangeable tokens that usually represent rights to works of art, music, or graphics. They have unique cryptographic attributes, which means that the blockchain can testify to their originality and ownership. Recently, for example, graphic designer Beeple sold his NFT for over $ 69 million. The rock band Kings of Leon or Grimes, the singer and life partner of Elon Musk, also released their tokens of this type.
The popularity of the NFT may, however, end in an uninteresting way for the market. According to the original concept, as Peirce reminds us, the NFTs were to be unchangeable.
The SEC commissioner adds that some NFT tokens can nevertheless be considered unregistered securities, making them illegal to sell.
– If you do something and you say, “I am selling it to you and I will build it, I will put a lot of effort into building something so that the thing you buy will have a lot of value” it raises the same kind of questions that triggered an ICO, so you have to be very careful when you do something like this – she explained. – You also need to be careful if you choose to [kupić] some of these NFTs and put them in your wallet then split them up and sell their pieces – she added.
NFT have become an investment hit in recent months. Like ICOs before, today they are recognized as a new, innovative solution based on blockchain technology.
In addition to Kings of Leon and Grimes, singer The Weeknd will release his NFT he posted on Twitter, that his will appear on the market soon “A new song living in the NFT space.”
The new NFT broadcasting platform is to be published by Crypto.com.
– Today, culture is driven by influencers who only work on the Internet. This is the perfect time for the NFT to actually go mainstream – said Kris Marszalek, CEO of Crypto.com.