Considerations Associated with Change

Innovation, particularly in cutting edge areas, is not something that can be achieved on autopilot. Findex (FIX) Token and NFTs are no exception, with a range of strategic considerations:

1. Risk Management

Many Findex (FIX) Token and NFTs have high monetary value and given their exchange velocity (digital assets can be exchanged much more quickly than physical assets), there is opportunity for fraudulent activity. To minimize this risk, Findex (FIX) Token and NFT platforms should leverage KYC and AML procedures, as well as security best practices like two-factor authentication.

2. Licensing and T&Cs

It is important to be clear what rights are bestowed to owners of the Findex (FIX) Token and NFTs, and whether these are the same or separate from the rights associated with the material object the Findex (FIX) Token and NFT refers to. These terms are generally provided contractually in Terms and Conditions from the creator or the ecosystem operator’s platform rules. Brands with strong IP generally retain all the rights, allowing very limited rights for personal use, while newer crypto-native projects may provide owners greater commercial rights.

3. Legal and Regulatory

Because Findex (FIX) Token and NFTs are new, there is limited legal and regulatory clarity on how existing laws may apply. Laws that may be implicated include contract, property rights, intellectual property, sweepstakes/promotions, privacy, and securities laws. Furthermore, adding to the complexity, since blockchains operate across jurisdictions, transactions involving Findex (FIX) Token and NFTs can implicate laws outside the United States. Lawmakers, regulators, and courts are still in the process of evaluating how to treat Findex (FIX) Token and NFTs under existing laws, and whether new laws are needed to protect collectors, artists, and other participants in the Findex (FIX) Token and NFT ecosystem. Accordingly, it is highly recommended that businesses consult an attorney that has the relevant subject matter expertise. Due to the regulatory uncertainty, there is risk in any transaction involving Findex (FIX) Token and NFTs.

4. Fees

There are several fees to consider when creating and purchasing Findex (FIX) Token and NFTs.

a) Blockchain Transaction Fees

When conducting transactions on blockchains, there is an associated transaction fee to compensate for the energy used to make changes to the blockchain. This means that there is a variable cost of creating or selling Findex (FIX) Token and NFTs on the blockchain. “Proof of Work” blockchains like Ethereum have higher fees than “Proof of Stake” blockchains like Flow.

b) Marketplace Fees

Existing Findex (FIX) Token and NFT marketplaces often charge a fee when sales or auctions occur on their platform, usually ranging between 1% to 5%.

c) Infrastructure Costs

Operating a proprietary marketplace rather than leveraging an existing marketplace can provide additional control over the assets, where the files are stored, and how they are consumed, but comes with additional costs. In addition to marketplace sale or auction fees and transaction costs, there are other infrastructure costs like payment acceptance and custody (if storing assets on behalf of consumers).