• The US court ruled that using emojis relating to rocket ships, stock charts, and money bags could be classified as investment advice.
• Former SEC branch chief Lisa Braganca warned the public against using certain emojis in promotional materials following the ruling.
• DapperLabs is accused of promoting NBA Top Shot Moments as investment opportunities through its marketing materials with carefully selected emojis.
Court Ruling on Emoji Use
On Feb. 22nd, a US court ruled that using emojis relating to rocket ships, stock charts, and money bags could be classified as investment advice. This 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 (NFTs).
Warning from Former SEC Chief
Following the court’s decision, former SEC branch chief Lisa Braganca issued a warning via Twitter advising against the use of certain emojis in promotional materials. She noted that these emojis could be interpreted as an attempt to promote investment opportunities.
Accusations Against DapperLabs
The plaintiffs accused Dapper Labs of promoting NBA Shot Moments as an investment opportunity through its marketing materials with carefully selected emojis. They argued that although the word “profit” wasn’t used in any tweet, the selected emoji objectively mean one thing: a financial return on investment. As evidence they referred to a tweet from DapperLabs which showed market performance with rocket ship, stock market and money bag emojiS.
DapperLabs has defended itself by claiming that the use of these emojis was intended to provide accuracy to markets data rather than for sales promotion purposes. Several members of the crypto community have also argued that Emojis could mean different things to different folks and thus having a rule on their usage would impede their freedom of speech.
In conclusion, following a recent US court ruling classifying some emoji use as potential investments advice, former SEC Chief Lisa Braganca warned against such practices while encouraging transparency in all sales promotions activities among cryptocurrency firms and users alike