When the popularity of non-fungible tokens (NFT) took off last year, most assumed that collectibles could never be securities. Given the regulatory compliance involved in issuing securities, that classification should be avoided unless it’s intentional and desirable. Hence the features of an NFT should be carefully considered before launch.
There was quickly an awareness that if NFTs are fractionalized, the fractions start to look like fungible tokens. And those fractions of a token could very well be a collective investment or a security.
As NFTs have evolved, so have their features. If an NFT gives you an interest in some income or revenues, then that NFT is also potentially a security.
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