News

DraftKings Kills Off NFT Business

The sports betting platform discontinues Reignmakers product and marketplace over legal concerns.

Jul 31, 2024 • 1 min read

DraftKings is shutting down its NFT business "effective immediately," the company said in an email to customers.

What's the scoop?

Immediate Shutdown: DraftKings has decided to discontinue Reignmakers and its NFT Marketplace due to a class action lawsuit alleging its NFTs were unregistered securities.
Legal Challenges: This year, DraftKings faced multiple lawsuits claiming its NFT sales violated securities laws.
Initial NFT Venture: DraftKings entered the NFT market in 2021, inspired by the success of NBA Top Shot, and launched an in-house marketplace.

Bankless Take:

NFTs may prove more difficult than tokens to establish legal classification for. While most, if not all, corporate NFTs launched as an avenue to profit off of 2021’s speculative craze, as NFTs increasingly become a new medium to create, consume, and share media, the breadth of their application will surely provide a challenge for regulators. This has already caused legal troubles for the industry on multiple occasions, like with Stoner Cats and Impact Theory.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

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