Draft:Dapper Labs
{{AFC submission|d|corp|u=You play to win the game|ns=118|decliner=Alpha3031|declinets=20241215024239|ts=20241024175553}}
{{AFC submission|d|corp|u=You play to win the game|ns=118|decliner=Robert McClenon|declinets=20230302020835|small=yes|ts=20221212163448}}
{{AFC comment|1=
This draft is written from the viewpoint of the company, focusing on what the company says about itself. Corporate notability is based on what independent reliable sources have written about the subject.
Not every business corporation is notable, and this draft does not establish corporate notability. You may ask for advice about corporate notability at the Teahouse. Robert McClenon (talk) 02:08, 2 March 2023 (UTC)}}
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{{Short description|Web3 company}}
{{Draft topics|north-america|business-and-economics}}
{{AfC topic|org}}
{{Infobox company
| name= Dapper Labs
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| type = Private
| industry = Web3
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| location_city = Vancouver, Canada
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| key_people = Roham Gharegozlou (CEO, Founder), Dieter Shirley (CTO, Co-Founder), Mik Nayeem{{cite web |title=Dapper Labs: 2022 CBNC Disruptor 50 |url=https://www.cnbc.com/2022/05/17/dapper-labs-disruptor-50.html |website=CNBC |access-date=8 December 2022 |date=17 May 2022}}
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| homepage = {{URL|https://dapperlabs.com/}}
}}
Dapper Labs is a private blockchain, NFT and digital entertainment company known for developing CryptoKitties, NBA Top Shot and the Flow blockchain.
History
In 2018, it was announced that CryptoKitties would be spun off into its own company, Dapper Labs. Dapper Labs raised $15 million from several venture capital firms and angel investors, with the investment round being led by Venrock.{{cite web |last1=Takahashi |first1=Dean |title=CryptoKitties creator Dapper Labs raises $15 million to build more blockchain cats |url=https://venturebeat.com/business/cryptokitties-creator-dapper-labs-raises-15-million-to-build-more-blockchain-cats/ |website=VentureBeat |access-date=7 December 2022 |date=1 November 2018}} The success of CryptoKitties resulted in significant congestion on the Ethereum network where the game is housed, which prompted Dapper Labs to develop its own blockchain, named Flow.{{cite web |title=Two Years After Crashing the Ethereum Network, CryptoKitties Is Moving to New Blockchain |url=https://dailyhodl.com/2020/05/22/two-years-after-crashing-the-ethereum-network-cryptokitties-is-moving-to-new-blockchain/ |website=Daily Hodl |access-date=7 December 2022 |date=22 May 2020}}
Dapper Labs' first NFT product was the NFT standard, ERC-721, with creation led by CTO Dieter Shirley.{{cite web |last1=Laporte |first1=Nicole |title=How Dapper Labs is making Web3 safe for normies with help from the NBA, UFC, and La Liga |url=https://www.fastcompany.com/90721921/dapper-labs-web3-safe-with-help-nba-ufc-and-la-liga |website=Fast Company |access-date=7 December 2022 |date=8 March 2022}}{{cite web |title=ERC-721 NON-FUNGIBLE TOKEN STANDARD |url=https://ethereum.org/en/developers/docs/standards/tokens/erc-721/ |website=Ethereum.org}} Dapper Labs also developed the Dapper Wallet, allowing the purchase of NFTs with credit cards.
Dapper Labs has created multiple marketplaces for major sporting leagues, selling video highlights in the form of digital collectibles via non-fungible tokens on the Flow blockchain. Most notably, the company partnered with the NBA and NBPA to create NBA Top Shot.{{cite web |last1=Dean |first1=Sam |title=Goodbye, Staples Center. Hello, Crypto.com Arena |url=https://www.latimes.com/business/story/2021-11-16/crypto-staples |website=Los Angeles Times |access-date=7 December 2022 |date=16 November 2021}}{{cite web |last1=Perez |first1=A.J. |title=NBA Top Shot Reaches $1B in Sales Amid NFT Market Downturn |url=https://frontofficesports.com/nba-top-shot-reaches-1b-in-sales-amid-nft-market-downturn/ |website=Front Office Sports |access-date=8 December 2022 |date=20 May 2022}} The company has also worked with the NFL and NFLPA (NFL All Day),{{cite web |last1=Shea |first1=Bill |title=NFL, NFLPA unveil NFT deal with Dapper Labs, producer of NBA Top Shot |url=https://theathletic.com/news/nfl-nflpa-unveil-nft-deal-with-dapper-labs-producer-of-nba-top-shot/e3SvUiVUEwnP/ |website=The Athletic |access-date=7 December 2022 |date=29 September 2021}}{{cite web |last1=Shea |first1=Bill |title='NFL All Day' is here: Can the NFL's version of NBA Top Shot work amid an NFT downturn? |url=https://theathletic.com/3516586/2022/08/18/nfl-all-day-nft-top-shot/ |website=The Athletic |access-date=7 December 2022 |date=18 August 2022}} WNBA and WNBPA (WNBA Moments),{{cite web |last1=Takahashi |first1=Dean |title=Dapper Labs creates NFT-based WNBA Moments on Top Shot |url=https://venturebeat.com/games/dapper-labs-creates-nft-based-wnba-moments-on-top-shot/ |website=VentureBeat |access-date=8 December 2022 |date=25 August 2021}} LaLiga,{{cite web |last1=Fried |first1=Ina |title=Dapper Labs raises $250M, strikes NFT deal with LaLiga |url=https://www.axios.com/2021/09/22/dapper-labs-raises-millions-strikes-laliga-deal |website=Axios |access-date=8 December 2022 |date=22 September 2021}} and the UFC (UFC Strike).{{cite web |last1=Dorsey |first1=Avon |title=The UFC Taps Dapper Labs for Its First Foray Into the Metaverse |url=https://hypebeast.com/2022/1/ufc-x-dapper-labs-collectible-moment-packs-first-metaverse-entry |website=Hypebeast |access-date=8 December 2022 |date=21 January 2022}} Outside of sports, Dapper Labs built a marketplace for Genies{{cite web |last1=Bambysheva |first1=Nina |title=Dapper Labs Reveals Plans For Next NFT Marketplace After NBA Top Shot |url=https://www.forbes.com/sites/ninabambysheva/2021/04/28/dapper-labs-reveals-plans-for-next-nft-marketplace-after-nba-top-shot/?sh=69de47007019 |website=Forbes |access-date=7 December 2022 |date=28 April 2021}} and worked with Dr. Seuss Enterprises on Seussibles!, a series of NFT collectibles.{{cite web |last1=Chu |first1=Gillian |title=Dr. Seuss Enterprises Releases 'Seussibles!' NFTs |url=https://hypebeast.com/2021/12/dr-seuss-enterprises-dapper-labs-and-tibles-seussibles-nft-collectibles-release-info |publisher=Hypebeast |date=December 19, 2021}}
=Litigation and investigation=
In 2021, a class action lawsuit (Friel v. Dapper Labs) was filed against Dapper Labs, in which plaintiffs Gary Leuis, Jeeun Friel, and John Austin{{cite web |last1=Lawler |first1=Richard |title=Was trading NBA Top Shots actually like trading stocks? A lawsuit will decide |url=https://www.theverge.com/2023/2/22/23610592/nba-top-shot-nft-securities-lawsuit-dapper-labs |website=The Verge |access-date=24 October 2024 |date=February 22, 2023}} alleged that NBA Top Shot Moments are unregistered securities.{{cite web |last1=Quiroz-Gutierrez |first1=Marco |title=Trial of former OpenSea product manager could broaden regulators' definition of 'insider trading' |url=https://fortune.com/crypto/2023/04/24/trial-opensea-insider-trading-nfts-wire-fraud/ |website=Fortune |access-date=24 October 2024 |date=April 24, 2023}}{{cite web |last1=Quiroz-Gutierrez |first1=Marco |title=Judge rules Dapper Labs can't dodge lawsuit on whether Top Shot NFTs are securities |url=https://fortune.com/crypto/2023/02/22/nba-top-shot-nfts-securities-dapper-labs-lawsuit/ |website=Fortune |date=February 22, 2023}} In February 2023, the federal judge presiding over the case declined to dismiss the suit, writing that it is "facially plausible" that Moments are securities.{{cite web |last1=Weiss |first1=Ben |title=The SEC investigated NBA Top Shot developer Dapper Labs, but decided to close case in September |url=https://fortune.com/crypto/2024/04/11/sec-dapper-labs-investigation-case-closed-september-2023-roham-gharegozlou/ |website=Fortune |access-date=24 October 2024 |date=April 11, 2024}} A settlement was eventually reached in June 2024, where the company agreed to pay US$4 million and change their business practices. More specifically, Dapper Labs decentralized the Flow blockchain, allowed Moments to be displayed, bought, and sold on other marketplaces, corrected withdrawal delays including updating customer wallets, enhanced AML/KYC protocols, increased withdrawal limits, and partnered with new payments and custody providers. The settlement also forced the company and its CEO, Roham Gharegozlou, to release control of reserve Flow tokens to the Flow Foundation and required Dapper Labs to train employees regarding marketing in compliance with securities laws.{{cite web |last1=Rohrer |first1=Eden L. |last2=Hinkes |first2=Andrew M. |last3=Nichols, Jr. |first3=D. Mcnair |last4=Durham |first4=Joshua |title=Does the Dapper Settlement Offer Rules of the Road for NFT Issuers? |url=https://natlawreview.com/article/does-dapper-settlement-offer-rules-road-nft-issuers |website=National Law Review |access-date=24 October 2024 |date=June 12, 2024}}
In 2024, Fortune reported that Dapper Labs was investigated by the Securities and Exchange Commission for unstated reasons. The investigation was terminated on September 29, 2023 and the SEC declined to release a set of recommendations associated with the report.
Recognition
In 2022, Dapper Labs was recognized on CNBC's Disruptor 50 list, Fast Company's Most Innovative Companies list,{{cite web |title=The World's Most Innovative Companies of 2022 |url=https://www.fastcompany.com/most-innovative-companies/2022 |access-date=24 October 2024 |website=Fast Company |date=2022}} and was awarded "Best in Sports Technology" at the Sports Business Awards.{{cite web |last1=Lemire |first1=Joe |title=Dapper Labs, With a Nod to NBA Top Shot, Takes Best in Sports Technology at Sports Business Awards |url=https://www.sportsbusinessjournal.com/Daily/Issues/2022/05/19/Technology/dapper-labs-thanks-to-nba-top-shot-takes-best-in-sports-technology-at-sports-business-awards |website=Sports Business Journal |access-date=24 October 2024 |date=May 19, 2022}}
References
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