1 At both the outset and the conclusion of its decision, the court emphasized the significance of the Flow Blockchain and Flow Tokens to the Howey analysis. On August 31, 2022, defendants filed a Rule 12(b)(6) motion to dismiss for failure to state a claim, leading to the court’s February 22, 2023, decision.īefore the court was the question of whether Moments were investment contracts and therefore securities, which the court analyzed under the Howey test, which examines whether (i) there is an investment of money (ii) in a common enterprise (iii) with a reasonable expectation of profit derived solely by the promotional or managerial efforts of others. On May 12, 2021, plaintiff Jeeun Friel filed a putative class action against Dapper Labs and its CEO, Roham Gharegozlou, alleging that Moments were securities under the federal securities laws. In connection with the Flow Blockchain, plaintiffs alleged that Dapper Labs created 1.25 billion tokens (Flow Tokens) that holders could stake in order to validate transactions on the Flow Blockchain. Plaintiffs alleged that prior to the launch of Moments, Dapper Labs developed a private blockchain (Flow Blockchain) to, among other things, offer technological support for the Moment NFTs by hosting the NBA Top Shot platform, recording transactions that occurred on a secondary marketplace that was part of the NBA Top Shot platform (Marketplace), and facilitating the validation of Marketplace transactions. Moments were offered and sold on the NBA Top Shot platform, a platform allegedly owned and operated by Dapper Labs.
#Dapper nba top shot serial#
In 2020, Dapper Labs began offering and selling Moments, each of which featured a digital video clip of influential moments in past NBA games with a unique serial number. While the decision represents a first-of-its-kind application of the so-called Howey test to the offer and sale of NFTs, the court itself acknowledged that the facts presented a “close call” and stated that its decision is narrow and based on the specific facts before it. The court also held that plaintiffs adequately alleged control person liability against Dapper Labs’s CEO under Section 15 of the Securities Act.
#Dapper nba top shot registration#
The court held that, at the pleading stage and accepting all allegations as true, plaintiffs adequately alleged that Dapper Labs violated Sections 5 and 12(a)(1) of the Securities Act of 1933 (Securities Act) by offering National Basketball Association (NBA) Top Shot Moments non-fungible tokens (Moments) without a registration statement. Dapper Labs, Inc., denying Dapper Labs and its CEO’s motion to dismiss a putative securities class action. District Court for the Southern District of New York issued an order in Friel v.
#Dapper nba top shot professional#
Sorare has decided to expand to other professional sports while Dapper Labs just signed a partnership with LaLiga, the Spanish football association - LaLiga has also partnered with Sorare.On February 22, 2023, Judge Victor Marrero of the U.S. They use ZK rollups to lower transaction fees.ĭapper Labs and Sorare will soon compete for the same player base. Sorare currently focuses on fantasy football (soccer) and uses the Ethereum blockchain for its NFT platform. We continue to be impressed by Roham’s strong leadership and vision and we could not be more proud to partner with him and the entire team at Dapper,” Coatue Ventures Chairman Dan Rose said in a statement.Īnd this is an interesting statement, as Sorare raised $680 million at a $4.3 billion valuation just a few days ago. “We think Dapper Labs is a leader in the space at the infrastructure level with the Flow blockchain and at the application layer with NBA Top Shot. Dapper Labs has developed Flow, a new blockchain built for scalability and practical use cases, such as NBA Top Shot. Each digital card is registered as a unique token on a blockchain.
The platform is based on NFTs, or non-fungible tokens. The value of these digital collectibles can go up and down over time.
They can then buy and sell some of their cards to other players. Users can buy digital cards that represent NBA players and moments. Some new investors are also joining the round, such as BOND and GIC.ĭapper Labs is better known as the maker of NBA Top Shot.
According to a source close to the company, today’s funding round values the company at $7.6 billion.Įxisting investors Andreessen Horowitz, GV and Version One Ventures are investing once again. Dapper Labs, the company behind popular fantasy basketball NFT game NBA Top Shot, has raised another $250 million in funding.
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