The Coinbase-backed nonprofit Stand With Crypto Alliance is leading the effort to establish the Creator Defense Fund initiative, which has raised $6 million from venture capital firm Andreessen Horowitz (a16z) and NFT marketplace OpenSea.
According to a press release on September 13, a16z will donate $1 million to the fund, while OpenSea has pledged to donate the remaining $5 million.
The coalition said legal pressures such as the SEC's recent Wells Notice to OpenSea suggest that blockchain-based creators will continue to face significant regulatory threats in the future, and that the fund is aimed at helping those who need it.
Creator Defense Fund
The fund aims to provide legal support to artists and creators facing government action or navigating regulatory uncertainty, particularly in the cryptocurrency space.
A16z general counsel Miles Jennings emphasized that the fund is designed to support creators who use blockchain to connect with their fans, monetize their work, and nurture their creativity, explaining that the initiative includes partnering with a major law firm to provide legal advice to creators.
According to Jennings, NFTs are an innovative blockchain-based tool that enables digital ownership over a variety of digital and physical assets. These assets can serve as proof of ownership of anything, such as digital art or concert tickets.
He added:
“Blockchain technology will bring artists closer to their fans while also allowing artists to more effectively monetize their work, ultimately bringing more creativity into the world. Fear of potential legal repercussions should not prevent well-intentioned artists from trying new technologies that might better serve their fans and families.”
To celebrate the launch of the fund and symbolize the resilience of the industry, OpenSea CEO Devin Finzer announced that the company will release a free, open-edition NFT on Base titled “Rising Tides Lift All Boats.”
Notably, members of the crypto community welcomed the move, with Stack’s Bradley Freeman stating:
“Creators are the lifeblood of NFTs and the scarcest resource in the world for infrastructure and development tools. If you're a creator working on the cutting edge of technology, you'll be highly valued and rewarded for being a pioneer for years and decades to come.”
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