CyberKongz Concludes SEC Investigation
The Ethereum-based gaming and NFT initiative CyberKongz announced the conclusion of its investigation by the U.S. Securities and Exchange Commission (SEC) on Tuesday, marking a significant milestone for the project in the evolving regulatory landscape. This conclusion follows a series of resolved inquiries from the SEC, particularly since the onset of a more crypto-affirmative approach under the Trump administration.
Details of the Investigation
CyberKongz, which has engaged the SEC over the past two years, first received a Wells notice from the agency in December, indicating potential enforcement action against the project. However, the SEC’s investigation has now wrapped up without any findings or punitive measures. Upon hearing the news, a representative from the SEC opted not to comment, mirroring the regulator’s recent policy of silence surrounding such closures.
Reaction from CyberKongz Team
“After years of litigation, unjust allegations, crippling legal fees, and the biggest hurdle we could possibly encounter—we are free. This is an extremely proud moment for CyberKongz. We are a small, passionate, and creative Web3 team that elected to fight this battle for the betterment of Web3.”
The inquiry was largely rooted in the utilization of CyberKongz’s BANANA token, as well as elements connected to its blockchain game and the 2021 migration of its Genesis Kongz contract, which the SEC had perceived as a form of token sale. In light of the widespread trend of projects integrating token launches with blockchain gaming, CyberKongz criticized the SEC’s discourse as “very concerning rhetoric” that might have “major implications for the entire Web3 gaming industry.”
Looking Ahead
In reflecting on the resolution, Myoo, the pseudonymous creator and artist behind CyberKongz, conveyed optimism for the future, declaring,
“We have taken some hard hits; but ultimately we have come through the other side—stronger and more determined than ever. The next chapter involves going back to our roots and doing what Kongz does best.”
Trends in the NFT Space
CyberKongz is among several NFT projects recently celebrating victories against the SEC. In March, Yuga Labs, the force behind the Bored Ape Yacht Club, also shared that its SEC inquiry had concluded, calling it a “huge win” for the NFT space. Similarly, the NFT marketplace OpenSea saw its own investigation terminated in late February, though it continues to seek regulatory clarity on NFT marketplace rules.
Overview of CyberKongz
Launched in 2021, CyberKongz debuted its genesis NFT collection on Ethereum and has since expanded with various companion collections, including one on the Ethereum sidechain Ronin, where its Play & Kollect game migrated in 2023. Despite earlier sales exceeding $300,000, the current floor price for CyberKongz’s flagship collection sits at around $5,447 in Ethereum.
Edited by Andrew Hayward
