Metaverse Casino To Stop Selling NFTs | But, Why?

Metaverse Casino To Stop Selling NFTs

As more and more companies are entering Metaverse, Casinos are not left behind. Casino owners are funding their Metaverse project by selling NFTs. News circulated claiming US Officials asked Metaverse Casino to stop selling NFTs

On April 13, Securities regulators in Texas and Alabama ordered Cyprus-based online casino developer Sand Vegas Casino Club to stop selling non-fungible tokens (NFTs), claiming the company was offering unregistered securities and defrauding the public. “What happens in the Metaverse, does not stay in the Metaverse,” says Texas Securities Commissioner.

Let’s go deeper into this news and find out the reason why Metaverse casino stopped selling NFTs. Is it safe or a fraud? Will it harm us? Will it truly profit the owners? So, without wasting time, let’s get started with Metaverse Casino to stop selling NFTs.

Metaverse Casino To Stop Selling NFTs

Securities regulators in two U.S. states to stop selling non-fungible tokens that promise a cut of profits from casinos on metaverse platforms. A virtual, Cyprus-registered casino, Sand Vegas Casino Club, faced an emergency cease and desist order from Texas and Alabama state securities regulators. The company is ordered to “stop a fraudulent investment scheme tied to metaverses.” 

On April 13, the Texas State Securities Board reported issuing the order, accusing Sand Vegas Casino Club, Martin Schwarzberger, and Finn Ruben Warnke of illegally offering non-fungible tokens (NFTs) to fund the development of virtual casinos in metaverses.

Related: 15+ Best Selling NFT Artists | People With Amazing NFT Art Skills

What Is The Benefit Of Casino NFT?

Metaverse Casino To Stop Selling NFTs

Allegedly, Sand Vegas offered 11,111 NFTs to raise funds for its metaverse casinos. The firm offered those who purchased Gambler NFTs and Golden Gambler NFTs a share of the casino’s future profits. By Sand Vegas’ projections, owners of Gambler NFTs could expect profits between $1,224 and $24,480 per NFT annually, and Golden Gambler NFTs holders would earn between $6,480 and $81,000 per NFT over the same period.

Holders of the NFT can participate in profit-sharing from the operations. The team forecasted proceeds of up to $24,480 from the “Gambler” NFTs and up to $81,000 per year from the higher-end “Golden Gambler” NFTs.

By April 9, the listing price for Gambler NFTs was between 0.23 ETH (around $744.38) and 777.77 ETH ($2.5 million), while the listing price for Golden Gambler NFTs was between 2.13 ETH ($6,793) and 169 ETH ($547,000).

Related: Best NFT Jobs In 2022 | Can You Make A Career Out Of NFTs?

Why Are The Casinos Seized? 

According to the order, the respondents claimed their NFT offerings were not securities and thus did not fall under securities laws. The document specified:

“The Respondents are also devising a scheme to obstruct any attempt to regulate the Gambler NFTs and Golden Gambler NFTs. They are misleading purchasers by claiming they can simply avoid securities regulation by implementing illusory features or using different terminology.”

Authorities in Texas allege that Sand Vegas said the NFTs are not regulated as securities, despite using the profit-sharing model as a selling point.

Related: Most Popular NFT Tokens | Best For Investing Today

Wrapping Up

That’s all for Metaverse Casino to Stop Selling NFTs.

On a final note, NFTs are highly profitable, still, you need to be alert. NFTs have their own laws that differentiate them from fake or illegal NFTs. We always recommend using legal ways to purchase and sell NFTs. If in the future as well some kind of illegal NFTs are sold they might also be seized as Metaverse casino to stop selling NFTs.

Keep exploring our website to know more about Metaverse.

Frequently Asked Questions

Q1. How Much Is A Gambling Ape?

Gambling Apes Official is trading at a floor price of $1,170.41. There are a total of 7777 NFTs minted held by 3744 unique owners with a total market cap of $10,126,720.65.

Q2. What Are Gambling Apes?

Gambling Apes is a generative NFT collection of 7,777 unique apes, created from over 120 different traits. The traits vary in rarity, resulting in some apes being ultra-rare and others being more common. Among the most notable traits are the background, fur, clothing, and headwear.

Q3. What Is NFT In Crypto?

Non-fungible tokens (NFTs) are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency.

Leave a Comment

Your email address will not be published.

Scroll to Top