The real reason we don’t do giveaways..

“There are few things that are for certain, ageing, and tax is said to be the only ones!”

#CMA is all about living and breathing the time of de-centralization, we are in it for the long haul, we fundamentally believe Crypto and the NFT space is the future of how we interact, engage, and conduct business. Having said that we are also very protective of our community members and will do everything in our power to never jeopardise their well-being, their privacy, or the persona. Although we believe in the fact that the metaverse will one day be where we spend majority of our time, we are not there yet, and there are hurdles, obstacles but also rules that needs to be abided to. These rules however outdated they may be, or whether you agree with them is at present moment mostly irrelevant! Till the world starts to build a regulatory framework that makes everything crystal clear for users, and producers we are risking legal actions if we do not adhere to these rules.

Now we could follow the wild West approach and think of ourselves only, and just drop some wild giveaways to pump our popularity, however this would be a) the wrong thing to do, and b) could put you in harm’s way (depending on the country you live in) — therefore #CMA will not be doing any giveaways. We understand the disappointment, and trust us when we say, we would love nothing more than to give you the opportunity to win some of our NFTs, but there is a keyword that many do not consider here, that makes it very risky for us, but more so for you. The word “giveaway”, means an opportunity for you to win something, based on actions and luck (no skills), so it can be considered a lottery of sorts. We have had lengthy conversations with our lawyer, accountant, and tax advisor (yes, we have a team of people like that helping us out, trying to keep all of us safe from breaking any laws), and the conclusion was that giveaways follows the laws that are regulating lotteries. What does that mean? Well to put it very direct, in most of the world, running a lottery is only allowed by, yes you got it — the government! Further to this, if the NFT has any value (which we obviously believe them to have), monetary that is, it can be considered an item that needs to be taxed, or at least reported on your annual tax / income statement. Should you make a profit on your NFT, by selling it for more than “$0” (because you won it, you didn’t pay for it) you need to declare that as profit, out of which you again need to pay tax!

Depending on which country you live in, the penalty is not only a civil case, potentially a fine, but can go to the extent of criminal case, meaning prison sentence! In some countries this may not be relevant, but as we believe in a fair approach, or at least as fair as possible, we simply cannot risk your safety or ours for a giveaway! Now does that mean we will not do anything “special” for our community?! NO, it just means we will eventually do something for ALL our NFT holders, because in that case it is no longer a lottery but a simple “award” or “dividend” if we are talking about financials!

We know that giveaways are a big promotional thing in the NFT space, and we get it, it is fun, exciting, great for publicity — but in the end it is also incredibly risky for the teams that do them without check with legal / accounting, and more so for the potential winner. For us the risk outweighs a couple of likes, or retweets — if we lose some giveaway hunters but keep our community safe, that is something we are more than willing to do! By the end of the day, your safety, excitement, respect, care, and satisfaction are all that matters to us!

Stay safe out there, it is in some areas the Wild West still, but not for long, regulators are eyeing our industry. However good or bad that may be, they will try to set examples from the big boys like Coinbase or Binance, to the little guys like you and us. The only thing from our side we can do, is to continue to be transparent in what we are doing and how we are doing it. Through that share it with you so you can take all precaution that is needed to not get hit with certainty. Because certainty is, the government will always want a big bite of your pie.

Scarlet

Communications & Marketing,

#CMA Squad member