SEC Finds “Stoner Cats” Violated Securities Laws
The United States Securities and Exchange Commission (SEC) has announced that the animated web series, “Stoner Cats,” created by Mila Kunis’s production studio, violated federal securities laws. The company behind the show has agreed to pay a $1 million fine without admitting or denying the SEC’s findings.
As a result of this action, Stoner Cats will no longer exist as an NFT community. However, the fate of the Stoner Cat NFTs currently in circulation and the six-episode series they unlock remains uncertain.
Will the NFTs be Destroyed?
As part of the settlement, Stoner Cats has agreed to destroy all NFTs in its possession through a process known as “burning.” This involves sending the NFTs to a digital wallet with no private key, effectively locking them up forever.
However, only the producers and executives can burn NFTs in their possession. On-chain tokens held by more than 5,000 unique wallet holders on Ethereum will not be affected.
Will NFT Holders Lose Benefits?
While it is impossible to destroy NFTs without holders’ consent, their utility can be neutralized by the creators. This means that access to the “Stoner Cats” web series, bonus features, and the Stoner Cat community may become worthless.
The web video series is hosted on Arweave, a decentralized blockchain protocol. The creators have stated that they do not control the content, which can never be removed from Arweave.
How will Stoner Cats Compensate NFT Buyers?
The $1 million fine paid by Stoner Cats will be used to establish a “Fair Fund” to compensate investors who bought Stoner Cats NFTs. The details of how the money will be distributed and who will qualify for payment have not been disclosed.
Hot Take: Stoner Cats NFTs Surge in Value
Despite the SEC’s actions, the value of Stoner Cats NFTs has skyrocketed by 163% in just three hours. This increase in value may be due to the expectation that current holders could be eligible for compensation from the “Fair Fund.”
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