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12 May 2021

Crypto VC Firm Outlier Ventures Wants to Do ICOs with NFTs - Decrypt

Crypto VC Firm Outlier Ventures Wants to Do ICOs with NFTs - Decrypt


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Dubbed the “NFTSPA” (pronounced “Nifty Spa”), it’s a set of guidelines that asks early investors to buy into limited edition NFTs now, for the promise of future NFTs down the line: the fundraiser gets a nice cash infusion, and the investor gets something that could become more valuable over time.

Outlier Ventures is also claiming that as fundraising vehicles, NFTSPAs “should not” constitute securities offerings in the US.

The expectation was that those tokens would become more valuable over time, and that the company issuing them would use investor funds to make it happen. .

Substantively, it's almost identical, except that those were fungibleERC-20 tokens, and these are NFTs.”.

The expectation that the company would play a role in increasing the value, in this case, is what made the coins securities.

Chris Donovan, who runs Outlier Ventures’ legal department, asserted that “exposure to the future franchise value of an NFT project” has nothing to do with the expectation of profit.

“What it is is promise [of] exposure to future goods and inventory and possibly other elements of what a project is doing, which may or may not necessarily be valuable in the same way that any particular NFT or NFT franchise may or may not be valuable.”.

While Donovan was confident that fundraising efforts the NFTSPA wouldn’t run afoul of securities laws, he added that Outlier Ventures would adapt to the SEC as needed. 

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