Non-fungible tokens (NFTs) have taken the world by storm. They are blockchain-enabled, highly centralized, smart contracts and defined as digital assets that hold different functionalities and characteristics and are indivisible. NFTs can be produced for digital assets like photographs or non-digital assets like ...
Investments in non-fungible tokens base on a complex regulatory and factual framework. High profits are associated with high risks. To deeply understand the general character of the particularis important, it is even more relevant to understand the special circumstances of the special transaction.
NFTs for digital stickers and other virtual collectibles was the early use case. Being mainly a playground for stupid money of the super-rich, they often merely deem to provide financial support to preferred artists.
Ownership of the NFT does not grant ownership in the underlying asset. It might or might not be associated with a license to use for personal, non-commercial use, while other licenses might allow commercial use of the underlying digital asset.
Important market places include OpenSea, Axie Infinity, Solana, CryptoPunks, SuperRare, BakerySwap, AtomicMarket, Rarible, Grimes’ choice, Foundation, and Nifty Gateway, or even at mainstream auction houses. They all work under their individual terms and conditions. Seller and buyer should choose wisely.
PUGNATORIUS supports and accompanies NFT buyers in the overall acquisition process, including ownership, use right and intellectual ownership issues of the transaction.
Since the NFT is here to stay, its use leads to many interesting legal challenges. This starts with the legal and regulatory requirements for the NFT issuer, the possible characteristics as security, and the applicability of AML/KYC requirements of art dealers for NFT transaction.
PUGNATORIUS confidentially supports NFT-unexperienced law firms in their complex professional assignments involving digital assets and blockchain technologies.
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