• 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.
• The plaintiffs accused Dapper Labs of promoting NBA Shot Moments as investment opportunities through their marketing materials with carefully selected emojis.
Court Ruling: Investment Advice Through Emoji Usage
On Feb. 22, a US court ruled that using emojis such as rocket ships, stock charts, and money bags could be classified as investment advice. This ruling came from a lawsuit filed against DapperLabs and its CEO Roham Gharegozlou for allegedly violating securities laws by offering its NBA Top Shot Moments.
Former SEC Chief Warns Against Using Emojis
Following the court ruling, former SEC branch chief Lisa Braganca took to Twitter to warn the public against using certain emojis in promotional materials. The ruling stated that Dapper Labs had used these carefully selected emojis in order to promote its NBA Shot Moments as potential investments for consumers.
Plaintiffs Accuse Dapper Labs of Promoting Investments
The plaintiffs accused Dapper Labs of promoting NBA Top Shot Moments as investments through their marketing materials with carefully selected emojis such as rocketships, stock charts, and money bags. In one tweet referencing market performance, DapperLabs had used all three of these symbols to represent potential returns on investments made by consumers into their products.
Dapper Labs Argues That Emoji Use Was Intended To Provide Accuracy
Despite this accusation however, DapperLabs argued that the use of these emojis was intended solely to provide accuracy in describing market data rather than promote sales or encourage people to invest in their products. This argument was made due to the fact that many members of the crypto community have said that emoji usage can mean different things for different people and thus limitations on its usage could impede freedom of speech.
In conclusion, this recent court ruling serves as an important reminder for companies within the crypto space regarding how they should use language when advertising their products online. Companies should take extra caution when utilizing symbols such as emojis so they don’t get caught up in legal issues related to providing unregistered advice or encouraging others to invest without proper disclosure or registration requirements being met first.