Dapper Labs Reaches Settlement with Plaintiffs, NBA Top Shot Makes Significant Progress

In 2021, Dapper Labs was sued for allegedly selling NFTs as unregistered securities. After a lengthy litigation process, Dapper Labs recently reached a settlement agreement with the plaintiffs, marking a significant progress in this legal dispute.

The co-founder and CEO of Dapper Labs expressed satisfaction, believing it is an important step forward for the company and the Flow community. He emphasized that legal clarity not only allows Dapper Labs to focus on providing better services for users but also creates greater freedom for developers, partners, and entrepreneurs on the Flow blockchain.

It is worth noting that this case also confirms that Flow is a completely decentralized, permissionless, and publicly accessible blockchain that is not controlled by Dapper Labs. Flow will continue to be committed to building an on-chain world that allows users to own their own data, digital assets, and online identities, aimed at ensuring that digital communities can thrive in an open and decentralized environment.

This settlement not only solidifies Dapper Labs' innovative position in the digital collectibles space but also further indicates that the NBA Top Shot Moments it offers do not fall under the definition of securities as defined by U.S. federal law. This paves the way for Dapper Labs' continued growth and innovation.

Data shows that NBA Top Shot has still made significant progress during the litigation period. Since the beginning of 2024, over 27,000 independent collectors have purchased collectibles on the platform. The user conversion rate has increased fivefold since November 2023, and the number of high-spending users has also seen substantial growth. In addition, the Fast Break game launched by Dapper Labs has garnered widespread attention from the community.

Other key points in the settlement agreement include:

1. Confirm the decentralized characteristics of the Flow blockchain.
2. Expand the trading market for NBA Top Shot Moments.
3. Optimize the payment and withdrawal system to enhance user experience.
4. Implement employee compliance training to ensure project transparency and legality.
5. Transfer control of Flow tokens to support the continuous growth and decentralization of the ecosystem.

These measures will not only benefit the development of Dapper Labs but will also bring positive impacts to the entire digital collectibles industry. With the removal of legal barriers, we can expect to see more innovations and groundbreaking developments emerge in this field.