In this week’s newsletter, read about non-fungible token (NFT) marketplace OpenSea registering a foundation in the Cayman Islands and fueling rumors of a potential token airdrop. Animoca Brands chairman Yat Siu says that NFTs will be bigger than in 2021 and 2022, NFT project CyberKongz receives a Wells notice from the United States Securities and Exchange Commission and Pudgy Penguins’ token plummets more than 50% after its launch. 

OpenSea Cayman Islands registration fuels token airdrop rumors

NFT marketplace OpenSea’s foundation registration in the Cayman Islands sparked anticipation of a potential token launch and airdrop. Community members hoped they would be rewarded for using the NFT trading platform. OpenSea told Cointelegraph in a statement that the foundation registration was real but did not provide further information. 

On Nov. 4, OpenSea CEO Devin Finzer announced that the platform would undergo major changes. While the executive did not provide more details, the platform said it would showcase an improved marketplace in December. 

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NFTs will be “even bigger” than they were in 2021 — Animoca’s Yat Siu

In a Cointelegraph interview, Animoca Brands chairman Yat Siu predicted that NFTs would continue to be adopted and become “even bigger” than in 2021 and 2022, the peak years for blockchain-based digital collectibles. 

Siu said that NFTs are reputational investments comparable to high-end physical artworks. The executive said that if a person owns a Picasso, their status becomes special. Siu added that NFTs could provide a similar effect. The executive said that NFTs are status symbols, conveying cultural and symbolic capital. 

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“Major implications” for gaming tokens as CyberKongz hit with SEC Wells notice

NFT platform CyberKongz received a Wells notice from the US Securities and Exchange Commission. A Wells notice is a letter issued by the SEC informing a company that the regulator may proceed with enforcement action. CyberKongz claimed this was a last-minute attempt from the outgoing Biden administration to set the industry back. 

The project said that the new administration may have a different stance. “We hope that the new administration puts an end to this unjustness on our industry, but until then we will fight for NFT projects on all chains,” CyberKongz wrote on X. 

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Pudgy Penguins’ PENGU token down more than 50% after launch

Popular NFT collection Pudgy Penguins launched a native token called PENGU, which was met with massive sell pressure and dropped by over 50% in its first hours of trading. The Solana-based token initially reached a $2.8 billion market capitalization before dropping to less than $2 billion. 

The project has not revealed any specific use cases for the token, but the coins are anticipated to play a role in the project’s governance. 

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Thanks for reading this digest of the week’s most notable developments in the NFT space. Come again next Wednesday for more reports and insights into this actively evolving space.