NFTs, or non-fungible tokens, have recently reached a new milestone. Two NFT collections, ‘The Plague’ and ‘Rektguy’, have announced that they are offering shares in their companies to their NFT holders. This innovative move raises questions about the legality and future of distributing company shares in digital assets.
The NFT ‘The Plague’ initiative
Pons Asinorum, founder of the NFT ‘The Plague’ collection, said that holders of their NFTs would receive a share in the company based on the number of unlisted NFTs they own. This decision, although potentially risky from a legal and regulatory point of view, was deemed legal after consultation with several lawyers. He emphasised that these shares were not being sold but offered as a gift, with no initial expectation of obtaining shares from NFT buyers.
The announcement has elicited mixed reactions from the NFT community, ranging from excitement at a potentially revolutionary development to scepticism about its practicality. Azuki, Researcher in Residence, believes that these share gifts are legal in specific circumstances, mainly because the eligibility criteria have been established in the past, and NFTs were not originally sold with the promise of equity.
Rektguy’s innovative approach
Similarly, Ovie Faruq, co-founder of ‘Rektguy’, announced that holders of their NFTs would receive shares in ‘Rekt Brands Inc.’ as a token of appreciation for their support of the art project. Faruq clarified that trading in ‘Rektguy’ NFTs would not result in the transfer of share rights, and also affirmed the legality of the initiative.
This initiative represents a significant development in the NFT space, where now two collections have offered shares to their holders, further aligning incentives. It is a pioneering approach to rewarding and engaging the community, potentially setting a new trend in the NFT market.
