The creators of “Stoner Cats,” a short animated show featuring Mila Kunis and Ashton Kutcher, face backlash for their venture into non-fungible tokens (NFTs).
The United States Securities and Exchange Commission (SEC) has charged Stoner Cats 2 LLC (SC2), the company behind the show, over an unregistered digital asset offering.
Mandatory Stoner Cats NFTs for Show Access
SC2 stands accused of selling NFTs linked to the “Stoner Cats” series without the requisite registration as securities. To resolve the charges, SC2 has consented to a cease-and-desist order and will pay a penalty of $1 million.
In July, SC2 sold over 10,000 NFTs at approximately $800 each. These NFTs granted holders access to episodes of “Stoner Cats,” a direct-to-NFT series portraying five medicinally-altered feline characters. Mila Kunis’ Orchard Farm Productions produced the show featuring Jane Fonda.
Given the celebrity draw of Kunis and Kutcher, the entire NFT batch sold out within 35 minutes, amassing $8 million. The SEC, however, claims that SC2 flouted securities regulations by failing to register the NFTs as investment contracts.
Read more: NFTs Explained: What Are Non-fungible Tokens and How Do They Work?
The SEC’s order suggests that SC2 emphasized the Hollywood credentials of the team during its promotional efforts. With top-tier celebrities providing voiceovers, investors expected the NFTs to appreciate in value similarly to stocks, contingent on the show’s success.
Read more: 7 Most Common NFT Scams
Moreover, the SEC pointed out that SC2 imposed a 2.5% royalty fee on secondary sales. This resale incentive enabled SC2 to tally over $20 million in transactions.
SC2 maintai
Go to Source to See Full Article
Author: Josh Adams
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
