Wizards of the Coast are the developers of the popular card game “Magic: The Gathering”. They have issued a cease and desist against an NFT project called “MtgDAO”. They say the project is clearly a violation of their copyrights.
What kind of project is this? It’s not that easy to see through.
The idea of “mtgDAO” is apparently to create its own Magic format, in which games can only be played with “permitted” cards. Players are to own the actual card in the real world and additionally acquire a self-created NFT of the card, in order to play the game “legally”.
By issuing its own NFTs, mtgDAO wants to further restrict the availability of the cards and maintain stable prices.
The function of mtgDAO would then be to provide players with a kind of “ticket” that allows them to participate in tournaments.
NFT Makers: Investment in real card is hard to justify
What is bizarre about the project? The creators of the NFT criticize the card game in a whitepaper for being “an insecure investment” (via mtgdao).
It says:
It is hard to justify investing significant money in individual cards when the value of a card can constantly change. The truth is that individual cards are an unpredictable investment – many lose value.
mtgDAO
It is then explained that the price ultimately depends on how many cards the creators print. Even if the creators promise not to print certain cards anymore, they still have the option to simply release a similar or even better card.
The criticism of cards as “insecure investments” is particularly bizarre because NFTs are considered by many to be completely “insecure investments”, which fluctuate extremely in price or even drop to zero. The mtgDAO project wants to ensure stable prices through a restriction of the card.
Developers praise enthusiasm, but forbid project nonetheless
What Magic is doing: They have hired a law firm to deliver a cease and desist letter to the creators of “mtgDAO”.
It is said that the enthusiasm is obviously great and impressive – the developers are also impressed by the work on the format, but… unfortunately, unfortunately, the project would still violate copyright.
Moreover, Wizards of the Coast is currently considering entering the NFT space themselves. Therefore, it is strictly forbidden to associate NFTs with the company’s brands.
As fans of Magic, the NFT creators should surely understand this.
NFT developers call Magic makers “reactionary”
This is how the NFT creators respond: Quite annoyed. On Twitter, it now says that this letter suggests that the NFT projects from Wizards of the Coast would likely fail. Many gamers are against NFTs. They see them as “empty status symbols” that only show how much money someone can spend.
There are much better ways for the creators of Magic to profit from the new rules of the market, such as with the model of mtgDAO. The position of Wizards of the Coast is retrogressive, and they now want to send them an email to show that something like mtgDAO is a good opportunity and not a threat.
Many gamers do indeed view NFTs critically. Some game designers have already questioned the model strongly:
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