CyberKongz, a gaming-based NFT project, has been issued a Wells Notice by the U.S. Securities and Exchange Commission, raising concerns over its ERC-20 token and blockchain game integration, indicating a potential legal battle might be in the cards.

The team said they were “extremely disappointed at the approach the SEC has taken” on X post on Dec. 16, referring to the Well’s notice, a formal SEC warning of potential enforcement. They also pledged to fight back, arguing the result could have major consequences for the web3 gaming and NFT sectors.

The SEC has expressed some concern with CyberKongz’s pairing of its ERC-20 token with its blockchain-based game. The SEC’s Division of Enforcement argues in CyberKongz’s case that this setup constitutes a security that has to be registered, much like the stance it took against Ripple. This position, the project argued, highlights a failure to understand blockchain technologies and would create a dangerous precedent across the entire web3 gaming industry.

The SEC’s concerns relate to its view that the 2021 Genesis Kongz contract migration was a primary sale. CyberKongz said this was a baffling interpretation of smart contracts and accused the regulator of failing to make a distinction between technical processes versus actual token sales. 

CyberKongz stated that its team has been under the microscope for the past 2 years and has suffered in silence during this period. With a small team and no prior capital raises or massive treasuries, the project will now try to challenge the SEC’s position to push for clearer rules in the digital asset space.

The statement also sought to blame the current administration, claiming its “anti-crypto agenda” had harmed the entire blockchain industry, and expressed hope for a new direction under the next administration. CyberKongz also voiced solidarity with industry leaders, including Brian Armstrong of Coinbase, Devin Finzer of OpenSea, and Hayden Adams of Uniswap Labs, who are also facing regulatory pressure from the SEC. 

“It has become increasingly apparent that the current administration is trying to force their anti-crypto agenda at the last minute. We hope that the new administration puts an end to this unjustness.”

CyberKongz on X.

By treating tokens as securities, the SEC seeks to subject them to stricter regulatory scrutiny and compliance with existing financial regulations, making it mandatory for projects to register and provide disclosures akin to those of traditional financial instruments. Critics say this approach suppresses innovation and overlooks the decentralized nature of blockchain technologies. 

Pudgy Penguins surpassed the phenomenal Bored Ape Yacht on Ethereum price for the first time. This surged amid the NFT’s native token, which would be released in the short term.

Pudgy Penguins price on Ethereum (ETH) surged to 21.49 ETH or equal to $83.930, surpassing the Bored Ape Yacht price of 19.85 ETH or equal to $83.930.

According to CoinGecko data on Dec. 09, these NFTs increased by 7.1% from 19.85 ETH in the past day of trading. Trading volume also surged almost half of the latest trading day to 2,653 ETH.

The increase of this penguin-inspired non-fungible token (NFT) amid the native token $PENGU that was announced a few days ago. This token will be released this year on the Solana (SOL) blockchain.

The Igloo Inc. would prepare 88 billion in token supply, with 25.9% of the supply allocated to the community. Another 24% will be allocated to another community, while the company will account for 11.48%.

“$PENGU will have a total supply of 88,888,888,888 and will launch on Solana,”

they mentioned on X’s post on Dec. 06

Viral Pudgy Penguins NFT

According to the post, these viral Pudgy Penguins were gaining momentum this year with millions of followers and billions of viewers across the globe. These NFTs also reached a market cap of 188,569 ETH after the price surged, which is only a few caps away from Bored Ape Yacht NFT with 196,101 ETH.

The NFTs, with 8,888 unique penguin cartoons, price on Ethereum will also target a new all-time high of 22.9 ETH that was created 10 months ago on Feb. 17.

Penguin’s firm also secured $11 million to build a new project on Layer 2 to support ventures named Cubed Labs and targeting mass cryptocurrency adoptions. This project will take a user-first approach to building abstracts and deploying the testnet ahead of the next wave of consumer crypto products.

After a dull stretch, NFT sales have taken a turn for the better. What’s behind this momentum, and is it a sign of a lasting revival?

NFTs are finally making a comeback

Non-fungible tokens are starting to show signs of life again after a rather dull performance in the last few weeks.

According to data from CryptoSlam, sales between Sep. 30 and Oct. 6 soared past $84.9 million, marking the highest sales volume since the week ending Aug. 25, which recorded over $93 million.

What’s even more interesting is that the NFT market has been gaining momentum throughout September. During the week of Sep. 16-22, NFT sales reached $69 million, and the following week, Sep. 23-29, saw a modest uptick to $75 million.

The current week, as of Oct. 7, has already clocked over $5.5 million in sales, suggesting that the market could continue this upward trend.

In addition to the rise in sales volume, there’s been an increase in activity, with over 2 million transactions recorded in the last seven days as of Oct. 7, a 29.73% jump from the previous period.

However, it’s not all sunshine. The average sale price of NFTs has dropped by 32.91%, now sitting at around $43 per sale, indicating that while more people are engaging with NFTs, the high-priced collectibles may still be lagging behind.

With the numbers showing positive momentum, what’s driving this rebound? Let’s dive deeper into which blockchains are leading the NFT race, why NFTs are making a comeback, and what we can expect in the days to come.

Which blockchains are leading the race?

As of Oct. 9, Ethereum (ETH) still holds the crown as the dominant blockchain in the NFT space, but the landscape is shifting, and other platforms are quietly gaining ground.

Ethereum (ETH)

Ethereum remains the leader in terms of NFT sales, bringing in over $26.5 million in the past week. Ethereum’s sales accounted for nearly 31% of the entire NFT market, but it’s also plagued by a relatively high percentage of wash trading — roughly 11.69%.

Wash trading involves artificially inflating the volume by buying and selling within the same wallet to create the illusion of higher demand.

Despite this, Ethereum’s vast user base and dominance in the NFT ecosystem cannot be ignored, as it recorded over 136,000 buyers during this period.

However, the volume of transactions (over 654,000) suggests a growing reliance on smaller trades, with the average sale price taking a sharp dip.

Mythos (MYTH)

Mythos (MYTH), a relatively newer player, is perhaps the most surprising competitor. Sales skyrocketed by over 6200% in the last week alone, reaching $15.3 million, giving it the second spot.

This explosion is driven by its gaming-centric focus, tapping into a relatively untapped and highly passionate user base. In-game assets such as NFTs have been a concept that gamers are increasingly embracing, and Mythos is positioning itself as the leader in this niche.

What’s even more interesting is that this surge isn’t heavily tied to wash trading, as only 0.28% of its transactions are wash trades, showing the platform is experiencing genuine user-driven growth.

Mythos has attracted over 632,000 transactions this week alone, which is nearly five times that of Ethereum, signaling that it might be a blockchain to watch closely as it builds on this rapid adoption.

However, gaming NFTs are highly dependent on the success of the underlying games. Hence, if those games fail to attract or retain users, the NFT market on Mythos might see a sharp decline.

Bitcoin (BTC)

Bitcoin (BTC) entering the NFT race was not something many anticipated a few years ago. Traditionally viewed as a store of value, Bitcoin’s blockchain wasn’t designed with NFTs in mind.

However, the introduction of Ordinals has breathed new life into Bitcoin’s potential in this space. While its weekly sales volume of $14.1 million might seem modest compared to Ethereum, the fact that Bitcoin’s NFT market is growing organically, with only 5.15% wash trading, is worth noting.

Interestingly, despite having fewer transactions and users compared to Ethereum, Bitcoin boasts a higher average sale price, hinting that its NFT market might be more geared toward high-end, premium assets.

Solana (SOL)

Solana (SOL) continues to be a serious competitor, posting over $10.8 million in sales this week, ranking fourth.

However, Solana’s wash trade percentage — at a whopping 22.7% — is one of the highest among the top blockchains, indicating that while Solana is seeing growth, much of its activity may be artificially inflated.

Yet, with nearly 223,000 unique weekly buyers and over 421,000 weekly transactions, it’s clear that Solana remains a key player, especially among collectors who prefer faster and cheaper transaction fees than Ethereum offers.

Polygon (POL)

Polygon (POL), known for its efficiency and low transaction costs, clocked over $10.7 million in sales last week, with wash trades making up only 0.25% of its transactions — far lower than Ethereum or Solana.

Polygon also recorded an impressive 84,532 sellers, indicating that the blockchain is attracting a healthy level of marketplace activity.

Why are NFTs surging again?

The recent surge in NFT sales can be traced to a few key developments, the most notable being a high-profile, yet dubious, CryptoPunk sale and the introduction of innovative NFT features by Telegram.

A flash loan-fueled transaction involving CryptoPunk #1563 recently made headlines when it appeared to sell for an eye-popping $56.3 million on the Ethereum blockchain.