- a16z, OpenSea and Stand With Crypto have launched a $6 million creator protection fund.
- OpenSea has pledged $5 million and a16z $1 million.
- The fund will help the NFT market, with this coming weeks after SEC issued a Wells Discover towards OpenSea.
Enterprise capital agency Andreessen Horowitz is collaborating with NFT market OpenSea and Coinbase-backed non-profit Stand With Crypto to launch a brand new fund aimed toward authorized protection for the crypto creator ecosystem.
On Friday, a16z Crypto, Stand With Crypto and OpenSea introduced the launch of Creator Authorized Protection Fund, with an preliminary $6 million funding. The fund targets authorized safety for artists and creators, in line with particulars the three platforms shared.
“This collaboration marks a significant milestone in our mission to empower and protect the voices of artists and creators who rely on blockchain technology,” the companies wrote.
OpenSea pledges $5 million
Creator Authorized Protection Fund’s unveiling comes simply two weeks after the US Securities and Trade Fee (SEC) issued a Wells Discover towards OpenSea – a number one NFT market. SEC’s discover signifies the regulator is contemplating a lawsuit towards the platform for securities violations.
Following the SEC’s Wells Discover, OpenSea issued a press release noting that it could “stand up and fight.” Co-founder and CEO Devin Finzer referred to as the regulator’s strategy stunning, with OpenSea saying it could dedicate $5 million to a fund aimed toward defending NFT creators.
On Sept. 13, {the marketplace}, along with a16z and Stand With Crypto unveiled the creator protection fund. a16z famous it could contribute $1 million whereas OpenSea pledged $5 million. OpenSea CEO commented that the fund will provide authorized experience to each creators and builders.
We’re honored to kick off the Creator Authorized Protection Fund alongside @a16zcrypto and @standwithcrypto.
Each creator, large or small, ought to have the ability to innovate with out worry. https://t.co/96wPpLTKjF
— OpenSea (@opensea) September 13, 2024
The fund will utilise authorized specialists from varied legislation companies, together with Cooley LLP, Fenwick & West LLP, Goodwin Procter LLP and Latham & Watkins LLP.
SEC and crypto crackdown
The SEC continues to draw criticism from throughout crypto and from US lawmakers over its regulation by enforcement strategy to crypto.
On Thursday, the regulator introduced a settlement with eToro. It included financial penalty and a stop and desist order that can see the platform delist all crypto tokens besides Bitcoin, Ethereum and Bitcoin Money.