Stoner Cats NFTs Surge in Value Despite SEC Charges
The U.S. Securities and Exchange Commission (SEC) has charged the NFT-driven cartoon series project, Stoner Cats, with selling unregistered securities. However, despite this regulatory trouble, NFT collectors are still buying up the tokens on secondary markets and driving up their prices.
Since the SEC’s enforcement action was announced, dozens of Stoner Cats NFTs on Ethereum have been sold on the OpenSea marketplace. This surge in demand has caused the lowest listed price for the NFTs to more than double from 0.019 ETH (about $30) to 0.049 ETH (about $79).
Why Are People Still Buying Stoner Cats NFTs?
Even though the project’s content production concluded in 2022 and it is now facing regulatory action, some buyers may be purchasing the NFTs as a joke or a cultural relic. Others may hope that the tokens will gain value on the secondary market or that there will be a way to get a refund.
The creators of Stoner Cats have agreed to create a “Fair Fund” to reimburse investors, but it remains unclear how much money will be available and who will be eligible for refunds.
The Rise and Penalty of Stoner Cats
In July 2021, the NFTs were originally sold for 0.35 ETH (about $800) each. The project raised over $8 million in just 35 minutes and saw secondary market sales exceeding $20 million, according to the SEC.
Stoner Cats 2 LLC, the production company behind the show, has agreed to pay a $1 million civil penalty and destroy any remaining NFTs in its possession.
The animated series was produced by Mila Kunis’ Orchard Farm Productions studio and featured voice acting from Ashton Kutcher, Chris Rock, Seth McFarlane, Jane Fonda, and Vitalik Buterin, the creator of Ethereum.
Hot Take: Stoner Cats NFTs Continue to Sell Despite SEC Charges
Despite facing charges from the SEC for selling unregistered securities, Stoner Cats NFTs are still in high demand. NFT collectors are flocking to secondary markets and driving up prices significantly. This surge in interest may be due to buyers finding humor or cultural value in owning tokens from a project involved in regulatory action. Others may be hoping for future value appreciation or a possible refund. While the creators have agreed to reimburse investors through a “Fair Fund,” the details remain uncertain. Stoner Cats initially raised millions through its NFT sale and will now pay a $1 million civil penalty while destroying any remaining tokens. The animated series featured notable actors and personalities including Mila Kunis, Ashton Kutcher, and Vitalik Buterin.
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