Luca Schnetzler, the CEO of Pudgy Penguins and commonly known as Luca Netz in the NFT industry, has expressed his unwavering confidence in the face of recent actions taken by the US Securities and Exchange Commission (SEC) against the NFT market.
On August 28, the SEC sent a Wells notice to NFT marketplace OpenSea, suggesting that NFTs traded on the platform could potentially be classified as securities. Subsequently, on September 17, the SEC imposed a $750,000 fine on the restaurant Flyfish Club for offering NFTs.
While some argue that a response to the SEC’s actions is necessary, Schnetzler dismisses them as baseless. In an interview with Cointelegraph, he referred to the SEC’s actions as a “nothing burger,” claiming that the real issue lies in certain problems surrounding NFT issuance, rather than the entire industry.
Schnetzler also pointed out that if the SEC were to target OpenSea, they would have to take action against numerous larger organizations that have already entered the NFT space. This sentiment was echoed by lawyer Oscar Franklin Tan in a previous interview, where he explained that while some NFTs could be considered securities under specific circumstances, they are not synonymous with the digital collectibles found on OpenSea.
According to Schnetzler, OpenSea is not misleading customers with false promises or dreams. He stated that the platform operates in a unique subsection and therefore, he has no concerns about the SEC’s actions.
In terms of investor protection, Schnetzler emphasized the importance of individual accountability when purchasing digital assets like NFTs. While government agencies like the SEC focus on safeguarding investors, Schnetzler believes that ultimately, investors themselves must take responsibility for their choices. He stated that despite the various interpretations of NFTs, at the end of the day, they are simply JPEG files.
In related news, Pudgy Penguins’ CEO revealed that the company’s GIFs have garnered over 10 billion views. Schnetzler also expressed aspirations to collaborate with prominent brands like Disney and Hello Kitty.