• A recent court ruling has classified DapperLabs‘ use of emojis as investment advice.
• Former SEC branch chief Lisa Braganca warned the public against using certain emojis in promotional materials following the ruling.
• The plaintiffs accused Dapper Labs of promoting NBA Top Shot Moments as investment opportunities, through its marketing materials with carefully selected emojis.
Ruling Classifies Emojis As Investment Advice
A US court ruled that using emojis relating to rocket ships, stock charts and money bags could be classified as investment advice. The ruling was contained in a lawsuit filed against Dapper Labs and its CEO Roham Gharegozlou for allegedly violating securities laws by offering its NBA Top Shot Moments – non-fungible tokens (NFTs) that capture key highlights and video clips from NBA games.
Former SEC Branch Chief Warns Against Emoji Usage
Following the court ruling, former SEC branch chief Lisa Braganca warned the public against using certain emojis in promotional materials via Twitter. The plaintiffs argued that Dapper Labs had promoted NBA Shot Moments as investment opportunities through their marketing materials containing carefully selected emojis such as rocket ships, stock charts and money bags.
Accusations Against Dapper Labs
The plaintiffs accused Dapper Labs of promoting NBA Top Shot Moments as investment opportunities, through its marketing materials with carefully selected emojis. The filing referenced a tweet in which DapperLabs used the rocket ship, stock market and money bags emoji to show market performance.
Dapper Lab’s Response To Accusations
Dapper Labs defended themselves by arguing that the use of the emojis was intended to provide accuracy to market data and not a means of promoting sales. However, several members of the crypto community have argued that Emojis could mean different things to different folks, hence a rule on its usage could impede freedom of speech.
It is clear that investing involves risk no matter what format it is presented in – emoji or otherwise – so it’s important for investors to be aware of their investments before they make them. Investors should always do their own research before making any decisions regarding investments or other financial matters