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ARTICLE · 07 FEBRUARY 2022

What Do You Get When You Cross An NFT With A Loot Box?

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

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According to Atari, they are known as "GFTs" or giftable NFTs appearing as gift-wrapped digital boxes.

United StatesTechnology

According to Atari, they are known as "GFTs" or giftable NFTs appearing as gift-wrapped digital boxes. In celebration of the video game company's 50th anniversary, Atari teamed up with NFT developer Republic Realm for the GFT collection. The GFTs will automatically unwrap at a later date to reveal what's inside, essentially combining loot box mechanics with NFTs.

Loot boxes are no strangers to scrutiny as they have been the subject of regulatory attention and litigation since they became wildly popular in video games. In general, loot boxes have been criticized based on comparisons to illegal gambling. And many parents have raised concerns that loot boxes may encourage gambling-like habits. In response to the criticism, the gaming industry has largely adopted self-regulatory practices. Industry practice includes disclosing drop rates and loot box odds in addition to providing meaningful disclosures and ESRB labeling for games that include purchases with randomized

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This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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