The Securities and Exchange Commission (SEC) has revealed that Stoner Cats NFT holders were given a compelling reason to actively trade their NFTs. These holders received a 2.5% royalty for every subsequent transaction in the secondary market. This incentive led to a staggering 10,000 secondary transactions, amounting to a value exceeding $20 million. What’s more, before the premiere of the Stoner Cats web series, at least 20% of these NFTs were being resold.
The SEC’s announcement sheds light on the potential market manipulation that ensued within the Stoner Cats NFT ecosystem. By providing financial incentives to NFT holders, the creators encouraged rapid buying and selling of these digital collectibles. This tactic led to an astonishing number of secondary transactions, resulting in a substantial financial turnover.
Moreover, it is concerning to note that a significant portion of these NFTs were resold even before the first episode of the Stoner Cats web series had been made available to the public. This suggests that certain individuals may have been primarily interested in the monetary gains associated with quickly flipping these NFTs rather than the actual content or artistic value of the web series itself. The SEC’s findings raise questions about the true purpose and nature of the Stoner Cats NFT project and the motivation behind its participants.