After only a day in open beta, Visionrare suspended all virtual trading on its NFT marketplace and issued refunds to users who snapped up faux shares on the platform’s “fantasy startup investing” game.
Legal Hurdles Shutdown Visionrare in One Day
The Visionrare platform allowed users to bid on auctions of VisionShares — aka “limited edition fantasy equity in the form of NFTs.” With these virtual shares, users participated in a fantasy-sports competition where the goal was to build the “most profitable” simulated portfolio. However, the fun and games came to a crashing halt because Visionrare failed to secure permission from the featured startups to sell NFTs of mock shares in their companies.
Visionrare also received significant pushback from tech entrepreneurs and investors who questioned the legality of the NFT platform. They also worried if VisionShares could be considered securities. Concerns also swirled that Visionaires’s gamified exchange would be perceived as both a taunt to the SEC and a bellwether of the market’s peak.
Founders Jacob Claerhout and Boris Gordts released a statement saying they may have “underestimated the legal complexities” in releasing the game in its current form and pledged to refund all VisionShares sold to date. The team also noted that some refunds were still pending as their payment partner completed credit card processing.
Claerhout and Gordts, however, aren’t quite done with their plan to merge startup investing with tournament-style gameplay. “In the coming days, we will relaunch Visionrare as a completely free-to-play game. All players start with a fixed amount of credits that they can use to build their startup portfolio.” Once set up, they competed “in leagues based on how well their portfolios perform in the real world. Down the line, we’ll figure out if and how we can add a financial element again.”
Consult With an NFT Lawyer
Legalities matter — especially when it comes to the cryptocurrency and NFT markets. The SEC and state finance agencies are eager to slap certain types of blockchain businesses with hefty fines. If you’re launching a blockchain, crypto, or NFT project, consult with an attorney who knows the niche. It could save you tons of headaches down the road. This is not one of those times where “acting first and apologizing later” applies.
