Lawyer: Dapper Labs is difficult to win the Top Shot NFT class action case

According to reports, lawyers said that Dapper Labs might not succeed in the class action against its Top Shot NFT, and other projects should be paid attention to. Lawyers of Skadden, Arps, Slate, Meagher and Flom LLP in the United States said that the court decided last week to allow the class action accusing Top Shot moments of securities to continue to advance, which indicates how NFT might be treated in the future. There are two key factors in this case, namely Howey Test and Dapper Lab’s sole control over the Moments trading market.

Interpretation of this information:

The recent class action against Dapper Labs’ Top Shot NFT has raised concerns about how NFTs will be treated legally in the future. The court’s decision to allow the class action to advance suggests that NFTs may be subject to securities laws. Skadden, Arps, Slate, Meagher and Flom LLP lawyers emphasized that Dapper Labs’ sole control over the Moments trading market and how the project fares under the Howey Test will be significant factors in the case’s outcome.

Dapper Labs’ Top Shot NFT has been a raging success, with some moments selling for millions of dollars. However, some users have questioned the legality of the project, and the recent class action adds weight to their concerns. The lawsuit alleges that Top Shot moments meet the criteria of securities, which would require Dapper Labs to comply with securities laws.

The Howey Test is a legal precedent that determines whether a particular asset qualifies as a security. It consists of four criteria: (1) there must be an investment of money, (2) the investment must be in a common enterprise, (3) there must be an expectation of profits, and (4) the profits must come from the efforts of others. If Top Shot moments are found to meet these criteria, Dapper Labs will be subject to securities laws, which could have significant consequences for the project and the wider NFT ecosystem.

Another key factor in the case is Dapper Labs’ sole control over the Moments trading market. The lawsuit alleges that Dapper Labs has manipulated the market by controlling the supply of moments and manipulating prices, which would further support the argument that Top Shot moments are securities.

In light of the recent developments, NFT projects should pay close attention to how the Top Shot case unfolds. The outcome could set a precedent for how NFTs are treated legally, which could have far-reaching implications for the entire industry.