Non-fungible tokens—also called NFTs—are not new, but 2021 is unquestionably the year of the NFT. The meteoric rise in popularity of NFTs has spurred the creation of entirely new business models, and along with them, a myriad of legal and regulatory questions and gray areas where existing laws haven’t kept pace with the technology or its uses. As regulators work to determine the best governing regimes for NFTs, stakeholders continue to grapple with the uncertainty.
For companies planning to bet on NFTs, the ability to navigate these gray areas effectively is crucial to realizing the company’s strategic objectives. In this article, we examine a variety of business models using NFTs and the related legal considerations for companies considering entering these markets.