Three NFT markets restrict “Stoner Cats” trading after US SEC action

Author: Mike Dalton, CryptoSlate; Compiler: Songxue, Golden Finance

As of September 18, at least three non-fungible trading (NFT) markets have restricted trading of the cartoon NFT series Stoner Cats.

The project is the brainchild of actress Mila Kunis, who also voices a character in the animated web series accompanying the NFT series.

Each market has taken a different approach to limiting Stoner Cats. OpenSea and Blur continue to showcase items from the collection, but each site blocks transactions by hiding listings and offers under individual NFT pages.

An OpenSea spokesperson confirmed that Stoner Cats cannot be bought, sold or transferred on the platform, but said the series has not yet been delisted or removed.

Meanwhile, Rarible has hidden the entire collection of Stoner Cats. The collection “has been removed from public view,” the website said. Rarible’s page assures users that they still own the items in question; like most NFTs, these collections can circulate freely on the blockchain or be traded on other compatible marketplaces.

A separate report from Decrypt quoted Rarible as saying that the company had blocked access to Stoner Cats “based on its market monitoring of recent events.”

Regulations and trading volatility at play

Regulatory action may be a direct or indirect factor behind each delisting. On September 13, the U.S. Securities and Exchange Commission (SEC) accused the parent company of Stoner Cats of violating securities regulations and announced a settlement of $1 million.

The actions also coincided with sudden trading swings. According to data from DappRadar, Stoner Cats’ daily trading volume surged from near zero to over $6,000 and $11,000 on September 12 and September 13 before falling to near zero again. The current base price is $96, more than three times higher than at the end of August and early September.

These unsustainable trends – rather than any perceived legal risks – may prompt each market to restrict trading. However, no market provides a solid reason for their decision, and any reasons are ultimately speculative.