Industry leaders a16z, OpenSea pledge $6 million to shield NFT artists from legal threats Industry leaders a16z, OpenSea pledge $6 million to shield NFT artists from legal threats
Coinbase-backed nonprofit Stand With Crypto Alliance is leading efforts to set up a legal fund for creators impacted by enforcement actions.
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Updated: Sep. 13, 2024 at 6:29 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The Stand With Crypto Alliance, a Coinbase-backed non-profit organization, is leading efforts to establish the Creator Defense Fund initiative that has raised $6 million from venture capital firm Andreessen Horowitz (a16z) and NFT marketplace OpenSea.
According to a Sept. 13 press release, a16z contributed $1 million to the fund, while OpenSea pledged the remaining $5 million.
The alliance said that legal pressures — like the SEC’s recent Wells Notice to OpenSea — signal that blockchain-based creators will continue to face significant regulatory threats, and the fund aims to help those who need it.
Creator Defense Fund
The fund aims to offer legal support to artists and creators who are facing government actions or navigating regulatory uncertainty, particularly within the crypto space.
Miles Jennings, general counsel at a16z, emphasized that the fund is designed to assist creators who use blockchain to connect with fans, monetize their work, and foster creativity. He explained that the initiative includes partnerships with leading law firms to provide legal consultations for creators.
According to Jennings, NFTs are innovative blockchain-based tools that enable digital property rights over various digital and physical assets. The assets are proof of ownership of anything, including digital art or concert tickets.
He added:
“Blockchain technology will bring artists and fans closer together while also helping artists better monetize their work, ultimately bringing more creativity into the world. The fear of potential legal repercussions should not hold back well-meaning artists from experimenting with new technologies that may better serve their fans and families.”
OpenSea CEO Devin Finzer announced the release of a free open-edition NFT titled “Rising Tides Lift All Boats” on Base to commemorate the fund’s launch and symbolize the industry’s resilience.
Notably, crypto community members have welcomed the move, with Bradley Freeman of Stack saying:
“Creators are the lifeblood of NFTs and the rarest resource in a world of infra and dev tools. If you’re a creator at the bleeding edge of technology, you are extremely valuable and you will be rewarded over the coming years and decades for being early.”
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a16z
Andreessen Horowitz (known as “a16z”) is a venture capital firm in Silicon Valley specializing in investing in seed, start-ups, early, mid-stage, growth, and late stage.
OpenSea
OpenSea is a decentralized peer-to-peer marketplace for buying, selling, and trading NFTs.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.