• Former SEC branch chief Lisa Braganca warned the public against using certain emojis in promotional materials following a court ruling.
• The court ruling classified DapperLabs‘ use of emojis relating to rocket ships, stock charts, and money bags as investment advice.
• The plaintiffs accused Dapper Labs of promoting NBA Top Shot Moments (NFT) as investment opportunities through its marketing materials with carefully selected emojis.

Warning by Former SEC Chief

Former SEC branch chief Lisa Braganca issued a warning against using certain emojis in promotional materials following a court ruling that classified DapperLabs‘ use of emojis as investment advice. She urged the public to be mindful of their use of certain emojis to promote digital assets.

Court Ruling Against Emoji Use

A US court ruled that using emojis relating to rocket ships, stock charts, and money bags could be classified as investment advice. This was contained in a lawsuit filed against Dapper Labs and its CEO Roham Gharegozlou for allegedly violating securities laws by offering its NBA Top Shot Moments (NFT). These NFTs capture key highlights and video clips from NBA games.

Accusations Against Dapper Labs

The plaintiffs accused Dapper Labs of promoting NBA Shot Moments as investment opportunities through its marketing materials with carefully selected emojis. The court filing referenced a tweet in which DapperLabs used the rocket ship, stock market, and money bags emoji to show market performance.

Dapper Lab’s Defense

Dapper Labs argued that the use of the emojis in the tweets was intended to provide accuracy to market data and not a means of promoting sales. However, several members of the crypto community have argued that Emojis could mean different things to different folks, hence, a rule on its usage could impede freedom of speech.

Conclusion

Using certain types of promotional material such as carefully selected emojis can be seen by courts as providing investors with financial return on investments or other forms of investment advice. It is important for members within the industry to be mindful when utilizing these type tools when communicating information about digital asset offerings or any other type investments products or services being offered in order to avoid potential legal issues down the road.