How much do you know about the legal risks of NFT teachers who “take orders”?

Due to their uniqueness, inseparability, scarcity and other characteristics of NFT and digital collections, their value is often determined by the subjective consciousness of buyers and sellers, with large fluctuations and no specific rules . Reasons that cannot serve as general equivalents. It is precisely because of its unique value attributes that only those NFTs and digital collection projects that are generally popular in the market have the ability to preserve and appreciate value, and NFTs that are no longer popular and no one cares, even if they are well-made and limited. Released, it will only become worthless over time .

It can be said that popularity is the life of NFT. At present, apart from the enduring popularity of several legendary NFT projects such as Bored Ape and CryptoPunks, the remaining NFTs more or less need to rely on the operation team behind them to carry out appropriate marketing hype to “continue their lives”. Although there are certain differences between my country’s digital collections and foreign NFTs, they have the same needs as foreign NFTs in terms of maintaining their popularity. As a part of the hype method, bringing a single teacher came into being.

So today, Sister Sa’s team is here to chat with you about the legal risks of NFT with teacher Shan.

What is an NFT teacher with a single

The so-called teacher with a single is also called a lecturer, a financial advisor, and in some specific cases, it is even regarded as a “childcare”. As long as things can be speculated, there will be teachers with Dan . From the ancient times of real estate speculation, gold speculation, crude oil speculation, foreign exchange speculation to the current NFT speculation, the teachers with a single can always find business opportunities with their sharp tongue and keen sense of smell.

To put it simply, NFT teacher with a single refers to the basic principles, development history, successful NFT project details of NFT and digital collections, and sharing investment and financial knowledge to specific or unspecified social groups through online or offline methods. group of people. Some daring teachers will even cooperate with some NFT platforms to publicize their NFT and digital collection projects with greater investment value in an implied or explicit way to induce people to invest.

In fact, although it is true that there is a teacher with a single in the field that can be fired (even a teacher with a single appeared when the mascot of a sports meeting was fired not long ago), but there are actually many kinds of teachers with a single, roughly It can be divided into professional teachers with single orders and non-professional teachers with single orders , and among professional teachers with single orders, it can be divided into teachers with single orders on platforms and teachers with single orders on non-platform platforms.

Non-professional teachers with singles generally refer to those who entered the circle relatively early, are more interested in blockchain technology and have long-term in-depth research and applications in various applications, including but not limited to virtual currency, NFT, and the Metaverse. Old players who invest in actual combat experience. These old players are often active in various domestic communities due to their early exposure to blockchain applications, rich experience in investing in various virtual currencies, and have accumulated a good reputation. Such old players are often willing to share their experience and research results in crypto asset communities and circles at home and abroad, and provide investment advice based on their own experience and knowledge for junior and intermediate users who want to enter the pit or need help.

Sister Sa’s team believes that the guidance of such non-professional NFT teachers to other users is a kind of friendship behavior of mutual help , as long as they give reasonable investment advice based on their own investment experience and research results, in the absence of specific Due to the special interests of the platform, if there is no intentional inducement, deception, etc., even if the investor fails to invest after listening to his investment advice, such teachers with orders do not need to bear legal responsibility.

The role of the platform with a single teacher in the NFT market

Like most commodities, the current NFT market also has the 28 theorem , and NFT projects in the top 20% (actually less) account for about 80% of the total value of the entire market. According to the data provided by Ouke Cloud Chain, the well-known old classic NFT series such as Bored Ape, CryptoPunks, Azuki, CLONE X, etc. are still old and strong, occupying the top ten on the list for a long time, and the daily transaction volume has reached more than one million US dollars. The eye-catching new project MURI, due to a wave of popularity on March 19, took the novice halo to the top on March 21, and the daily transaction volume reached a terrifying $17 million.

If you only look at a few top-ranked or short-term NFT projects, novice friends who don’t know enough may think that they can easily make money by simply buying a few NFTs, but in fact, the volatility of NFT projects is far greater than that of stocks. and other traditional financial investment products. As of March 29, 2022, the halo of MURI is no more, and the daily transaction volume has dropped to around $500,000. Although the average daily transaction number can remain above 100, the average transaction price has dropped significantly. Therefore, if NFT is regarded as an investment product, its investment risk is extremely huge . Even due to the existence of many knock-on transactions and wash transactions, it is difficult to judge the value of a specific NFT project simply from transaction data.

Through various NFT data observation platforms, we can find that the number of transactions of NFT projects ranked after about 270 is basically 0, whether it is some projects with large issuance and holding such as More Loot, MakersPlace, etc., Like MissCryptoClub and Chainfaces, the value of projects that have been issued in small quantities by the route of scarcity but failed to catch on in the end has been infinitely approaching 0. In fact, for NFT projects with an average daily transaction volume of less than $10,000 after 160, the situation is already precarious.

Therefore, what professional teachers have to do is to maintain and enhance the popularity and popularity of NFT projects to ensure their value . This is also the reason why many people are not optimistic about NFTs and digital collections. Sister Sa’s team has also been calling for their financialization to be avoided: if the value of a commodity (product) is largely given by market hype, then its It is a bubble in itself, not only big and small, but also may burst in an instant.

Occupation with a single teacher, what are the legal risks?

As mentioned above, professional teachers can be divided into platform teachers and non-platform teachers . A teacher with a single platform refers to an individual or professional operation team that has an employment relationship or other close relationship with a certain platform, receives a fixed salary or commission income from one or more platforms, and has greater interests tied to a specific platform.

The non-platform teachers are mostly developed on the basis of non-professional teachers, and they are also some well-known people in the currency and investment circles. Compared with platform instructors, although they all take orders as their profession, non-platform instructors are more famous in the crypto asset circle, generally do not have close connections with specific NFT and digital collection platforms, and often act in their personal capacity. , generally through the opening of classes, accepting apprentices and teaching arts or financial custody to obtain commissions as their main source of income.

(1) Non-platform teachers with single orders

For non-platform teachers, because NFTs and digital collections are not officially defined as financial products such as securities and futures, they simply give investment advice for NFTs and digital collections projects, even if they are paid consultations. At present, legal risks are not Not much . However, if you use VPN circumvention software to buy or sell or help others to purchase overseas NFTs, it may violate the provisions of Article 6, paragraph 1 of the “Interim Regulations of the People’s Republic of China on the Administration of International Networking of Computer Information Networks”: computer information networks directly conduct international networking, and must use The international ingress and egress channels provided by the national public telecommunication network of the Ministry of Posts and Telecommunications. This constitutes an administrative violation and may face administrative penalties such as fines.

In addition, there is a question that everyone is more concerned about: if the platform recommended by the teacher with a single has an administrative violation, and the teacher with a single has no relationship with the platform and provides advice without knowing the illegal behavior of the platform, is it also illegal? We believe that although Teacher with Dan is actually helpful to the illegal acts carried out by the platform, since my country’s “Administrative Punishment Law” and “Administrative Litigation Law” do not clearly stipulate how to punish “joint violations”, according to my country’s “Administrative Punishment Law” and “Administrative Litigation Law” Article 3 of the Administrative Penalty Law stipulates that if there is no legal basis or legal procedures are not followed, the administrative penalty is invalid. It is difficult for the administrative organs to punish the behavior.

Even if the platform is involved in a criminal offense, whether a teacher with a single will bear criminal responsibility also depends on whether it is associated with the platform. If you are neither an employee of the platform, nor should you be aware of the criminal acts committed by the platform, even if his investment advice objectively helps the criminal acts committed by the platform, since there is no subjective intention to commit a common crime, it still does not constitute an accomplice of the platform. , should not bear criminal responsibility.

However, if a teacher with a single first buys a batch of NFTs and digital collections, and then uses his own influence to “fudge” a large number of investors into the market but sells them at a high level, he may be suspected of fraud . In addition, if NFT and digital collection platforms are obtained through improper channels, it may affect their internal price information and use this information, and it may also constitute a crime of infringing trade secrets (this has actually happened in the shoe speculation circle).

(2) Platform with single teacher

For platform-based teachers, in addition to the same problems as non-platform-based teachers, the risks of their own administrative violations and criminal violations are even greater .

First of all, the behavior of operators arbitrarily promoting and hyping NFTs and digital collections belongs to the collusion stipulated in Article 14, paragraph 1 of the “Price Law of the People’s Republic of China” (hereinafter referred to as the “Price Law”), manipulating market prices and harming other operators. or the legitimate rights and interests of consumers; at the same time, Article 14 of my country’s “Price Law” also prohibits making huge profits by fabricating and disseminating price increase information, driving up prices, pushing commodity prices to rise too high, and other violations of laws and regulations. unfair pricing practices. Violations of the relevant provisions of the “Price Law” not only face administrative penalties, but may even constitute the crime of illegal business operations in serious cases.

Secondly, if the platform or team to which Mr. Dan belongs to use virtual currency to trade NFTs and digital collections, it is a violation of Article 1 of the “Notice on Rectifying Virtual Currency “Mining” Activities (referred to as “9.24” Notice) issued by ten ministries and commissions in 2021. (16) The behavior is illegal financial activities , and the domestic platform will face administrative penalties and may have criminal risks. As a platform employee and a teacher who provides help to the platform, in the event that the platform constitutes a crime, the operation of taking down the line and returning the commission depends on the specific situation. If it plays a greater role in the crime committed by the platform, then It will also be considered as an accomplice of the platform to be convicted and punished.

In addition, there are currently many platforms and groups on the Internet that use the banner of NFT and digital collections to conduct fraud, illegal fundraising, and pyramid selling. For the crime of pyramid selling activities, this kind of “teacher with a single” is not actually a single, and it is aimed at the investor’s wallet at the beginning . Investors must always be vigilant.

write at the end

At present, judging from the observations of the members of Sister Sa’s team in the user groups of major platforms in China, the hype of NFTs and digital collections is very common. Avoiding the financialization of NFTs and digital collections is the long-standing proposition of the Sajie team. NFTs and digital collections themselves are an important part of the Metaverse economy and the cornerstone of building the Metaverse. Limiting NFTs to ordinary commodities and collections is not only limited to It is conducive to its own compliance development, and can also promote the construction of the Metaverse. It is a more long-term and sustainable development choice.

On July 25, 2017, the SEC issued a Report of Investigation Pursuant to Section 21(a) of the Securities Exchange Act under Section 21(a) of the Securities Exchange Act of 1934. of 1934: The DAO) In the report, based on the investigation of the public issuance of tokens by the DAO organization Slock.it, the Securities Regulatory Commission clearly pointed out that its tokens belong to the “Securities Act of 1933” and the “Securities Exchange Act of 1934” in the United States. securities“. Since then, the tokens issued by the DAO organization and the NFTs that prove membership will be recognized by the SEC as securities and subject to the same supervision. Although this NFT is not another NFT due to different uses, and my country’s digital collections have not yet been included in the category of financial products such as securities and futures, the hype trend may alienate NFTs and digital collections. Although we hope that the domestic digital collection market is regulated, we do not want it to be regulated in the way of financial products in the end.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-much-do-you-know-about-the-legal-risks-of-nft-teachers-who-take-orders/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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