After more than two years of tension facing the top financial regulator in the United States, the famous game and NFT project on Ethereum – CyberKongz has officially announced that the U.S. Securities and Exchange Commission (SEC) has concluded its investigation without taking any enforcement action. This is a significant turning point, not only for CyberKongz but also has positive implications for the entire Web3 Gaming industry.




In December of last year, #CyberKongz received a Wells notice from the SEC – a clear signal indicating that the agency was considering prosecution. The case relates to the project's previous activities, including:



  • BANANA token – the currency in the CyberKongz game ecosystem.



  • Blockchain games integrated with NFTs.


  • The movement of the Genesis Kongz contract in 2021 was suspected by the SEC as a form of illegal token issuance (token sale).




However, to date, the investigation has officially closed, with no adverse conclusions or enforcement actions taken. CyberKongz asserts:



"After many years of struggle, unreasonable accusations, terrible legal costs, and seemingly insurmountable pressures – we are free."




Why is the CyberKongz case noteworthy?


CyberKongz is one of the oldest and most reputable NFT projects on $ETH , previously achieving sales over $300,000 per transaction. The main collection currently maintains a floor price of around $5,447 (converted from ETH), and the project has developed multiple product lines, including the game "Play & Kollect," which is currently operating on the Ronin sidechain – a chain focused on gaming.


The important point is that CyberKongz's case did not occur in a 'legal vacuum,' but arose from the SEC tightening its grip on projects related to NFTs and gaming, especially tokens integrated into games. This previously caused the Web3 community to be concerned that all tokens in games could also be considered securities, pushing the entire industry into legal risk.


CyberKongz has also stated that the SEC's rhetoric regarding tokens in games is 'concerning,' which could severely impact the entire Web3 gaming industry if not clarified.



A turning point from the new administration


CyberKongz's legal victory occurs against the backdrop of President Donald Trump's administration showing a more favorable stance towards the crypto industry. In recent months, many SEC investigations into NFT/Web3 projects have also been closed, notably including:



  • Yuga Labs, the creator of Bored Ape Yacht Club – declared a 'big win' when the SEC halted its investigation in early March.



  • OpenSea, the largest NFT marketplace – was also confirmed not to be penalized after the investigation concluded at the end of February.




However, not every aspect is clear. Even #OpenSea is still seeking further guidance from the SEC regarding the rules for NFT exchanges, indicating that the legal environment for Web3, although 'cooling down,' is still not entirely certain.



CyberKongz: Back and stronger than ever?


The anonymous founder of CyberKongz – artist Myoo – wrote on X:



"We have taken many heavy hits, but in the end, we have overcome them all – stronger and more determined than ever. Now is the time to return to our roots and do what Kongz does best."



The project now aims to return to focusing on content creation, community expansion, and game development – which were the keys to their initial success. With a more favorable legal environment, CyberKongz expects to open a new chapter for Web3 Gaming, with greater confidence and stability from a legal foundation.



User perspective from Binance and the Web3 community


For users on Binance or interested in the Ethereum ecosystem, this event brings positive signals for the entire NFT and Web3 Gaming industry, especially as Binance also supports many NFT projects and integrated gaming tokens.


What can be learned from the CyberKongz case?



  • Gaming projects integrating tokens need to be more transparent and cautious in designing their operational mechanisms to avoid being misunderstood as issuing securities.



  • Users should closely follow legal news to assess risks before investing in tokens within the gaming ecosystem.



    Market confidence may gradually recover, especially with projects that have 'escaped charges' from the SEC like CyberKongz, Yuga Labs, or OpenSea.





⚠️ Risk warning


The cryptocurrency and NFT market is always volatile and carries risks, especially in new areas like Web3 Gaming. Although regulatory signals are becoming more positive, investors need to stay alert, keep updated regularly, and avoid FOMO (fear of missing out) when participating in gaming or NFT projects that do not have a clear legal foundation.


Invest responsibly and allocate your portfolio wisely to protect your assets in a rapidly changing environment like today.

#anhbacong