New perspective that I haven’t heard before, better explains why quite a few respectable people argue that (many) NFTs are securities. Great newsletter as usual by Matt Levine.
I like to explain crypto initial coin offerings by saying that “they’re like if the Wright Brothers sold air miles to finance inventing the airplane,” so here’s another old-timey analogy for non-fungible token offerings. Imagine that one day in the boom times of the 1920s a young animator named Walter Disney shows up at the stock market one day looking to raise money for his new company. “I am going to make a fortune making movies and theme parks,” he says, “and I am giving you the opportunity to invest early. I’m not selling you shares of my company, though; I’m selling something even better. Here’s a drawing of a mouse. If you give me $1 million, I will use it to build a movie studio and theme-park empire, and the mouse will feature prominently in that empire, and you will get the royalties from that mouse. Here’s a dog, and a duck, and some nephew ducks. Same deal, though the nephew ducks are cheaper.”