Truth Labs' 'Operation: Resurrection' Faces Scrutiny Over Legal Concerns, $132M Valuation Cap

Concerns are rising around Truth Labs' innovative but potentially legally dubious method of offering equity through the Operation: Resurrection experiment. The process involves purchasing an NFT and then burning it to receive equity in the merged Truth/Upstream entity, a mechanism that has been criticized for potentially being an unregistered security offering. This method has been described as a roundabout way for unaccredited investors to buy shares in the company, raising questions about its legality. Additionally, Truth Labs has been mocked for offering a valuation cap of $132 million to its community, with some seeing this as metaphorically 'lighting money on fire.' Despite the controversy, some community members initially saw the 'burn for equity' model as an incredible initiative, only to be disappointed by the realization that the equity received might only amount to $100 at a $135 million valuation. The situation has been linked to a broader narrative involving elite performative art memes, media frenzy, and significant market value destruction.