NFTs Are Securities? All Eyes Turn to Top Shot Case

A lawsuit against Dapper Labs, the creator of NBA Top Shot Moments, may proceed as a US judge has ruled it's "plausible" the collectibles may prove to be securities. The plaintiffs accuse Dapper Labs of earning hundreds of millions of dollars by selling unregistered securities and restricting users from withdrawing their money.

Dapper Labs' lawyers argue that Top Shot NFTs are not securities, but collectibles. Investors will closely watch this case as the SEC continues to press cryptocurrency issuers to register their tokens. Top Shot Moments feature multimedia highlights depicting key moments in basketball history and are traded on a marketplace owned by Dapper Labs.