In a stunning turn of events, the Stoner Cats NFT project has been slapped with a trading ban on prominent marketplaces like OpenSea, Blur, and Rarible. The ban came hot on the heels of an announcement by the United States Securities and Exchange Commission (SEC) charging the creators with selling unregistered securities.
Originally sold in 2021, these Ethereum-based NFTs were linked to a star-studded animated series featuring celebrities like Mila Kunis, Ashton Kutcher, Chris Rock, and Ethereum founder Vitalik Buterin. The NFTs allowed access to the six-episode web series, which revolves around the misadventures of cartoon cats with a penchant for getting high.
The SEC’s allegations were centered on the fact that the non fungible tokens were sold as unregistered securities, triggering a significant setback for the project. While the ban has caused the NFTs to vanish from OpenSea, Blur, and Rarible, they still linger on the blockchain and in the wallets of their holders.
OpenSea’s representative confirmed that the platform has disabled trading but opted to keep the project page accessible, given its role as a blockchain explorer for non-fungible-tokens. Rarible also corroborated the ban, citing market monitoring as the basis for their decision, while Blur has yet to comment on the matter.
Remarkably, Stoner Cats NFTs can still be bought and sold on marketplaces like LooksRare and X2Y2, which continue to host active listings. This resiliency reflects the enduring popularity of the project, despite the legal troubles it now faces.
NFT Sales Soar: Stoner Cats’ Lucrative Debut
During the initial sale in July 2021, Stoner Cats managed to sell 10,420 NFT passes, amassing over $8 million. Subsequently, the project creators profited from over $20 million in secondary market sales. However, the SEC stepped in, alleging unregistered securities sales and imposing a $1 million civil fine on the creators.
Part of the settlement agreement involves using the fine to establish a Fair Fund to reimburse investors, with eligibility details yet to be revealed. Additionally, the creators have pledged to destroy any remaining non-fungible tokens in their possession, further complicating the future of these unique digital assets.
In the wake of the SEC charges, the NFT market for Stoner Cats experienced a surge in sales and prices. Floor prices skyrocketed from $30 to $131 before settling at around $61 as the non-fungible tokens disappeared from major exchanges.
The Stoner Cats NFT saga is a stark reminder of the regulatory uncertainties surrounding the non-fungible tokens space. As this project’s fate hangs in the balance, it underscores the need for increased clarity and adherence to securities regulations within the cryptocurrency and blockchain industries. The next chapter in this high-profile NFT journey remains uncertain, but it is certain to attract further attention in the ever-evolving world of digital assets.