Saturday, February 4, 2023

The nft king of LaLiga and NBA asks for passage in Spain and runs into Garzon and regulation

Dapper Labs, the US-based conglomerate considered the father of NFTs that has since created the protocol to change the way digital assets are understood, is a giant in the sector with its eyes set on Spain. Despite the firm’s success in the United States, the newness of its business may raise doubts about how to qualify it. as you may have learned five daysThe company met with representatives of the Ministry of Consumption during a public consultation promoted by the ministry in the framework of the elaboration of legislation that will regulate loot boxes Or loot boxes in Spain to clarify.

The firm has deals with the NBA, with the NFL and with LaLiga to create digital collectibles that can be exchanged later. Since Dapper Labs entered into an agreement with the NBA in 2019 as of last November, NBA Top Shot “Moments,” the certified proprietary videos that are its flagship product, have generated 28 million transactions worldwide for a combined value of more than $1,200 million. Did it

Las loot boxes They are packs that are purchased in some video games with random content that is used within the game. In the draft standard on them, Consumers argues that these products available in some video games share characteristics with betting. It is believed that they may lead to the emergence of thoughtless, compulsive, and pathological consumption behaviors. For this reason, and without forgetting that a large proportion of video game users are minors, it was deemed necessary to promote regulation.

The Cuatrecasas law firm summarizes that the recipients of this law will be those entities that exploit or commercialize loot boxes, That is, primarily, video game organizations. On the other hand, game operators are expressly prohibited from exploiting and marketing loot boxes or loot boxes,

In addition, for those who work with loot boxes, the same restrictions on advertising as on bets will apply, in addition to a ban on face-to-face advertising. This would mean, among other things, limits on sports sponsorship.

From Dapper Labs they comment that their interactions with regulators in the countries where they operate “are intended to explain what is included in our product and, therefore, what is not our product, resolving doubts and both establishing a link between the parties”.

in conversation with five daysJorge Urrutia del Pozo, vice president of football at Dapper Labs and general director of LaLiga Golazos, explains that this is indeed their product. “Our collectible videos are videos that remind you of moments. We have great LaLiga goals in Spain. The player’s story, the narration appears, can be shared on social networks and added to the collection. Then there is a market where people can go to buy and sell their collectibles. When I was young, I used to buy an album and then go to the kiosk for sticker envelopes. Then he exchanged them. We shared that experience re-imagined”, he compares.

if affected by the law of loot boxes, Dapper Labs will be limited in its advertising options to its core audience. “Ultimately, a lot of product success hinges on how to attract people who are passionate about a sport. That’s why our communication is focused on creating a digital archive experience that didn’t exist before ,” Urrutia says of Dapper Labs’ approach.

irregularity

One of the key factors in the draft law loot box There is randomness. “Random reward mechanisms are virtual objects, functions or processes of any kind that are integrated into the dynamics of certain video games and whose activation provides the player with, on a random basis, the opportunity to receive virtual rewards or prizes that can be used in the environment These entertainment products”, defined Bill by stating that these mechanisms, when associated with the uncertainty of an outcome of a random nature, intensify the level of physiological arousal; And they also promote, as in games of chance, their repeated use.

When selling its products to users, Dapper Labs offers Moment Packs where they can touch different options. For example, in a LaLiga Great Goals pack called Kings of the World, still available for purchase at the date of this article’s publication, it offers three moments in exchange for $29.99. These three moments are specified among a total of 36 possibilities that can be consulted beforehand. 10 are classified as common, 26 as rare. When you buy the pack, you get two common moments for sure and in the third, there’s a 99% chance you’ll touch a common again, while a 1% chance in 26 to define one as a rare Is.

In addition to selling packs, Dapper Labs also runs challenges for users, which in turn entitles them to rewards when completed. On behalf of the company they say that these rewards are not random for completing certain challenges. “It’s what separates our products from random loot boxes.”

“The nature of the product means that only adults can access Moments purchases, which is in line with regulation. The spirit of the law is very much in place to prevent minors from being exposed to these types of loot box transactions. , for example, in the case of video games, and framing them as such. So they’re different situations, but if we don’t take the time to have these kinds of conversations to establish the features of the product, This can lead to confusion as to whether it is or is not”, they conclude from Dapper Labs.

NFT and crypto assets

gap

Although an NFT is a crypto asset by definition, it has nothing to do with the term crypto asset when it is mentioned. 96% of payments on Dapper Labs are done in fiat charter, Jorge Urrutia del Pozo begs to differ that Dapper Labs NFTs are not an investment. “We work with sports entities to offer digital collectibles where the objective for the user is not an investment, but a way to get closer to the players, teams, leagues they are passionate about and what drives them. It’s true Some of these assets may or may not revalue later, but this is not a bet, this is not an investment for someone who wants to make money, this is not a fantasy game. Digital archive”, he reiterated.

cnmv

In January this year, the National Securities Market Commission (CNMV) published a series of rules to avoid advertising crypto assets that are the object of investment. “With respect to this last point, our internal analysis indicates that Dapper Labs products are outside the scope in which the regulations apply at this time,” he says.

commitment

Dapper Labs emphasizes its commitment to governance. “We have analyzed the regulatory framework and we are committed to complying with the established regulations applicable to our products and we are working closely with those in charge of developing and implementing this regulation to resolve any doubts or questions related to Dapper. Labs and their products”, he highlights.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
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