OpenSea, the leading NFT marketplace, recently removed the Ethereum NFT pass associated with the Fractional Uprising project, citing a violation of its policies against securities and options.
According to reports from Decrypt, the team behind Fractional Uprising disputes the claim, asserting that their NFT does not constitute a security offering.
In a recent tweet accompanied by a video clip, Fractional Uprising expressed dissatisfaction with OpenSea’s decision to disable their collection, noting that while their project remains visible on the platform, trading and listing functionalities have been suspended.
— Fractional Uprising Studios (@FU_STUDIOS) February 23, 2024Three weeks after delisting us without an appeal, @opensea promotes a VC backed studio doing the same thing we started three years ago. Even changed their logo to match!
We built our studio from the ground up with two people and a mission. We didn't start this to win, we started… https://t.co/EvyBr7eOSI
Developers have voiced concerns over OpenSea’s lack of clarity and transparency in their communications. Fractional Uprising representatives argue that their project’s description and offerings do not differ significantly from those of other NFT initiatives and are frustrated by the absence of an appeal process.
The delisting unfolds against a backdrop of significant developments within the NFT marketplace. Last month, OpenSea CEO Devin Finzer indicated the company’s openness to mergers and acquisitions, signaling potential growth and diversification strategies.
Furthermore, the NFT landscape may soon experience regulatory changes. Today, the leader of South Korea’s Financial Supervisory Service announced plans to engage in discussions concerning the regulation of NFTs.
With major cryptocurrencies increasing in speculation and value, South Korea is contemplating reclassifying NFTs as virtual assets. Such a move would broaden the scope of regulatory oversight to include NFT issuers and distributors, subjecting it to similar stringent regulations faced by cryptocurrency service providers in the country.