DeFi’s PoolTogether Crowdfunds Legal Defense With NFT Collection

PoolTogether is a decentralized finance startup PoolTogether. legal trouble it’s now turning to non-fungible tokens, or NFTs, to crowdfund its defense fund.

Funds from the company’s “Pooly” NFT collection, released on Thursday, will go toward “supporting PoolTogether Inc. in defending against the class action lawsuit,” according to its website.

PoolTogether is an app-based and no-loss savings game in which users can win prizes by depositing funds using DeFi protocols.

The lawsuit in question dates back to last October when Joe Kent – a former staffer for the notoriously anti-crypto Sen. Elizabeth Warren (D-Mass.) – sued PoolTogether for violating New York state’s gambling laws.

In his complaint, Kent is also described as being “gravely concerned that the cryptocurrency ecosystem – which requires the use of enormous amounts of electricity – is accelerating climate change and allowing people to evade financial regulations and scam consumers,” – concerns that match those espoused by his former boss, Sen. Warren.

Kent’s suit against PoolTogether is seen as a test case to change the landscape of DeFi regulation, with the plaintiff having only deposited $10 on the platform before filing the suit.

Kent’s suit names PoolTogether, the Brooklyn-based corporation, and its founder, Brooklyn resident Leighton Cusack, as well as a host of the protocol’s investors, including Dragonfly Capital, Compound Labs and Galaxy Digital Capital Management, as defendants. Stanislav Kulchov, founder and CEO at DeFi platform Aave is also named.

By naming both the company and its investors, Kent’s suit seeks to determine who is legally responsible when a DeFi protocol “harms” a user. Depending on the outcome of the case, this could have enormous ramifications for decentralized projects – including decentralized exchanges (DEXs) and decentralized autonomous organizations (DAOs) – as a whole.

PoolTogether’s Cusack announced the Pooly Drop on Twitter Thursday. The crypto community rallied behind them. Within just two hours, the collection had raised 73ETH (around $135,000), with its goal of 769ETH (around 1,425,000), with 27 days remaining to mint.

NFTs are available for purchase in three editions:.1ETH, 1ETH and 75ETH per piece. PoolTogether encourages holders of NFTs to spread the word on Twitter by changing their profile pictures to show Pooly NFTs.

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