In Brief:
- The Solana based NFTs project are canceling plans to reward holders over regulatory fear
- FTX NFTs will not list projects that reward holders with a share of secondary market sales.
Solana based NFT projects are canceling plans to reward holders with royalties over regulatory fears. The news followed soon after cryptocurrency exchange FTX.US marketplace will support Solana-based NFTs.
As FTX NFTs is a centralized platform under the jurisdiction of U.S. regulators that need to know your customer identification checks. Solana marketplaces like Solanart and DigitalEyes, FTX NFTs “will not list projects that reward holders with a share of secondary market sales in the form of crypto payments.”
FTX.US president Brett Harrison said the launch includes royalties, reward schemes that gives ongoing passive income to holders.
Various solana-based NFT projects with royalty-like schemes have announced that they are changing course or canceling those plans. Projects like Solarians, Turtles, and Toasty Turts all made similar announcements this week.
Solarians thread showed “Even if not to list with FTX, proceeding with fee-sharing will expose the project to compliance issues in the future which is not beneficial to the holders in the long-term.”
The OG Robot on Solana Solarians, “Many members of the community wanted to see what we have actually been working on in terms of rewards structure.”
“Ultimately, I think it’s better that the regulatory risks that are currently prevalent in the NFT landscape be openly discussed as early as possible,” said Harrison. “It’s better for projects to proactively learn about and come into compliance with U.S securities law now, rather than wait until later when there may be greater direct scrutiny from regulators.”
