Emojis Are Now Financial Advice – Is Fun Dead In Finance?
By Benzinga
Finance can often be seen as dry and unexciting, right?
Twitter and StockTwits users will know that emojis have brought a fun and lighthearted touch to the industry.
But, beware. U.S. District Judge Victor Marrero recently ruled that the use of emojis in finance can no longer be just a fun addition; they're a legitimate form of financial advice. Let’s back up.
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What Happened: On Feb. 22, Judge Marrero ruled that the use of certain emojis in the context of finance objectively mean one thing: a financial return on investment.
Specifically, the "rocket ship" 🚀 emoji, "stock chart" 📈 emoji, and "money bags" 💰 emoji were deemed to be indicative of an investment opportunity.
While the Securities and Exchange Commission (SEC) hasn’t officially ruled the use of certain emoji’s are a form of financial advice, Former SEC Branch Chief Lisa Braganca said that “users of these emojis are hereby warned of the legal consequence of their use.”
This ruling came about as part of a larger case involving Dapper Labs and their offering of NBA Top Shot "Moments."
The judge determined that the way in which Dapper Labs offered its digital collectibles created an investment contract under the Howey test, which defines an investment contract as "a transaction, or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party."
This ruling has significant implications for the NFT industry, more specifically, those that offer NFTs alongside a native token.
Dapper Labs created its own blockchain, known as the “Flow Blockchain” with the native Flow (CRYPTO: FLOW) token as part of a larger so-called Flow Network, which would host applications that run atop and whose transactions are validated on the Flow Blockchain.
The plaintiffs in the case accuse Dapper Labs of “propping up the market for Moments as well as the overall valuation of NBA Top Shot” by not allowing users to withdraw their money in an attempt to draw interest and increase value for its Flow Blockchain and Flow token.
Judge Marrero denied Dapper Labs’ motion to dismiss the lawsuit before trial, meaning the case will proceed.
Image by Gino Crescoli from Pixabay
