SEC and NFT intersection
Right now there is no intersection between the SEC and NFTs. If there was there would be breaking news and everyone would know. For now, there is not much regulation on NFTs. NFTs act like a physical possession much like art. There are people collecting them to enjoy and pass down in their family and there are people trying to flip them and make money. These are non fungible (no concept of common) and not shared between two NFTs.
With NFTs there is no need for an appraisal business like there is for other goods. This is because if there is a buyer and seller agreeing on a price it does not matter what it would be appraised at. Not like the extensive process for home appraisals which just gives you an estimate where the buyer and the seller still need to agree on a price. NFT prices are liquid.
Royalties are becoming a growing concept for NFT enthusiasts. NFTs can live forever and be sold countless times. Each time the NFT is sold, each person who has previously owned it will get a pre decided percentage of amount paid. Not all NFTs have Royalties it must be embedded into it.
Where are NFTs Headed?
NFTs are still changing and evolving into what they will be. They are so new we are still using analytical words like non fungible. For example, we don’t say search engines we just say Google. NFTs as art is just the beginning. They don’t have to be jpegs of art. NFTs can be anything digital that is unique. Even further, NFTs may not only be digital, they can be used for things like patents.
The more content we can figure out how to store digitally, like a blockchain, the more certainty we will have.
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