NFT’s Run-Up Rekindles Chatter About Manipulation Ahead of Deal

  • Purchase of Meebits increased in days before the agreement
  • NFTs have been clouded by allegations of impropriety before

An online commotion around seemingly irregular trading of a NFT collection prior to the acquisition of the project is shining light again on a perceived lack of regulatory clarity in one of the most explosive corners of crypto.

During the days leading up to the March 11 purchase by Yuga Labs of the intellectual property of the Meebits collection from Larva Labs, more than a dozen addresses on the Ethereum blockchain purchased a large amount of the nonfungible tokens. The price floor, or the lowest price a seller is willing to accept, went as high as 6.134 Ether, or about $15,800, on March 12, according to NFT Price Floor. That’s nearly double two days earlier. 

Whether that was just good timing or individuals acting off information, legal observers said that may be hard to quantify because of the anonymous nature of crypto and the vague regulatory framework around NFTs. U.S. authorities have said existing regulations are a solid precedent for rules about cryptocurrencies

“There is currently quite a bit of uncertainty as to whether some of these NFT products are improperly not registering as securities,” Darren Heitner, an IP lawyer in Fort Lauderdale, Florida, said in an email message.  

Officials at Larva Labs couldn’t be reached over social media contacts when seeking comment. Yuga Labs didn’t respond to requests for comments. 

Published By : Bloomberg

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