Blockworks Quotes Braden Perry in Fantasy Startup Investing NFT Marketplace Shutdown Article
Braden Perry, among other experts, was quoted in a recent Blockworks article discussing the legal complexities to Visionrare’s temporary shutdown less than 24 hours into its beta launch. Visionrare, comparable to a fantasy sports league, is a non-fungible token (NFT) marketplace that enables users to bet and buy fake shares of startups. However, Visionrare was temporarily shut down less than 24 hours into the beta launch of its core product, TechCrunch, resulting in criticism and pushback over this new platform.
Braden Perry, a former CFTC enforcement attorney and a partner at Kennyhertz Perry, commented on the issue stating that when users must pay for a virtual investment it “adds massive regulatory complexity and scrutiny.”
“When you start charging retail customers for a product, traditional theories of fairness and deception are in play. Visionrare was using ‘virtual’ stocks from real companies without their approval, which asks for legal challenges,” Perry told Blockworks. “[Purchasing] fake shares in any company can only lead to confusion, with the potential for wrongdoing on many levels.”
To read this article in full: https://blockworks.co/fantasy-startup-investing-nft-marketplace-shutdown-a-day-into-beta-launch-heres-why/
About Kennyhertz Perry’s Commodities, Futures, and Derivatives Practice Group
Kennyhertz Perry advises clients on a wide range of commodities and derivatives regulatory matters. Kennyhertz Perry has experience in all types of derivative transactions and design structures to meet clients’ specific trading, financial, and/or credit needs. The roots of the practice are in the commodities markets, where Kennyhertz Perry partner Braden Perry spent time as a Senior Trial Attorney with the Commodity Futures Trading Commission. Our lawyers regularly advise our clients on compliance with the complex laws and regulations governing the securities and derivatives industries, including the Commodity Futures Modernization Act of 2000, the Commodity Exchange Act, the Gramm-Leach-Bliley Act, the Securities Acts of 1933 and 1934, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the SEC and CFTC regulations, the rules of the various derivatives exchanges and clearinghouses and other industry self-regulatory organizations and the “Blue Sky” state securities laws. Keeping abreast of regulatory developments is imperative and enables our lawyers to guide clients on comment-making about proposed legislation and regulation, provide ongoing operational and compliance counseling, and offer advice on appropriate modifications of transaction structure and documentation.
Clients also benefit from Kennyhertz Perry’s experience in related areas of law, such as litigation, banking, securities, insurance, and its regular practice before the Commodity Futures Trading Commission. Leaders in the financial industry choose Kennyhertz Perry because the firm’s lawyers tailor their advice to the unique issues presented by each matter they handle.
To learn more about Kennyhertz Perry, LLC, please visit kennyhertzperry.com.
*The choice of a lawyer is an important decision and should not be based solely upon advertisements