What Happened to Dapper Labs?
Dapper Labs, a blockchain technology company, rose to prominence with its NFT platforms like NBA Top Shot, NFL All Day, and Flow blockchain. After facing legal challenges regarding unregistered securities and privacy violations, the company has pivoted its strategy, focusing on utility-backed collectibles and new licensing agreements while continuing to operate its core platforms and launching new ventures like Disney Pinnacle.
Quick Answer
Dapper Labs has navigated significant legal challenges, including a $4 million settlement for an NBA Top Shot NFT securities lawsuit in 2024 and a $5 million settlement for a privacy violation lawsuit in 2026. The company has ceased issuing new NFTs for NFL All Day as of May 2026, signaling a strategic pivot towards a 'next-generation' NFL product, while its NBA Top Shot and Disney Pinnacle platforms continue to operate and see new developments, including record sales and on-chain permanence for collectibles. Dapper Labs remains a private company, with its share price estimated at $11.44 as of July 2026.
📊Key Facts
📅Complete Timeline14 events
Dapper Labs Founded
Dapper Labs is founded by Roham Gharegozlou, Dieter Shirley, and Mack Flavelle, focusing on blockchain technology and NFTs.
NBA Top Shot Launch
Dapper Labs launches NBA Top Shot, an officially licensed digital collectible platform for NBA highlights, which quickly gains popularity.
$305M Series C Funding Round
Dapper Labs closes a $305 million funding round led by Coatue, with participation from Michael Jordan, Kevin Durant, and Andreessen Horowitz, bringing total capital raised to $357 million.
$7.6 Billion Valuation
Dapper Labs reaches a valuation of $7.6 billion following a $250 million funding round.
UFC Strike Launch
Dapper Labs partners with UFC to launch UFC Strike, an NFT marketplace for iconic UFC moments.
First Round of Layoffs (22%)
Dapper Labs lays off 22% of its staff amidst a downturn in the NFT market, citing the need for long-term business health.
NBA Top Shot Lawsuit Motion to Dismiss Denied
A federal court denies Dapper Labs' motion to dismiss a class-action lawsuit alleging NBA Top Shot Moments are unregistered securities, allowing the case to proceed.
Third Round of Layoffs (51 Employees)
Dapper Labs conducts its third major round of layoffs, letting go of 51 employees as it continues to navigate the 'crypto winter'.
NBA Top Shot Lawsuit Settlement Approved
The $4 million class-action settlement for the NBA Top Shot NFT securities lawsuit receives final court approval, dismissing the claims without admission of fault.
NBA Top Shot Announces On-Chain Permanence
NBA Top Shot, in partnership with the NBA and NBPA, announces that all Top Shot collectibles will have on-chain permanence, enhancing verifiability.
Disney Pinnacle Sees Record Sales
Dapper Labs announces record-breaking sales and high-velocity secondary market activity for its Disney Pinnacle platform, including a $7,500 sale for a digital pin.
VPPA Lawsuit Settlement Final Approval
The $5 million settlement for the Video Privacy Protection Act (VPPA) class-action lawsuit against Dapper Labs receives final court approval, with the claim deadline set for the same date.
NFL All Day Halts New NFT Issuance
Dapper Labs announces it will cease issuing new NFTs for its NFL All Day platform, signaling a strategic shift towards a 'next-generation' NFL digital collectible product.
Estimated Share Price Update
Nasdaq Private Market estimates Dapper Labs' private share price at $11.44, reflecting ongoing market activity and valuation data.
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🔍Deep Dive Analysis
Dapper Labs, founded in 2018, emerged as a pioneer in the blockchain and NFT space, gaining widespread recognition with the launch of CryptoKitties and later, the highly successful NBA Top Shot. The company's proprietary Flow blockchain underpins its various digital collectible platforms, which expanded to include NFL All Day, UFC Strike, Disney Pinnacle, and La Liga Golazos.
The peak of the NFT boom in 2020-2021 saw NBA Top Shot Moments selling for tens of thousands of dollars, propelling Dapper Labs to a valuation of $7.6 billion by September 2021, having raised over $600 million in funding from prominent investors including Andreessen Horowitz, Google Ventures, and Michael Jordan. However, the subsequent 'crypto winter' and a broader recalibration of the NFT market led to significant challenges.
A major turning point was the class-action lawsuit filed in May 2021, alleging that Dapper Labs sold unregistered securities through NBA Top Shot Moments. While Dapper Labs denied liability, arguing Moments were collectibles for entertainment, a federal court denied their motion to dismiss in February 2023, allowing the case to proceed. This lawsuit ultimately concluded with a $4 million settlement in October 2024, without Dapper Labs admitting fault or liability.
Concurrently, Dapper Labs faced a Video Privacy Protection Act (VPPA) lawsuit, accusing it of illegally sharing user data via Meta tracking pixels across its platforms. This case resulted in a $5 million settlement, which received final court approval in April 2026, with claims due by the same date. In response to these legal and market shifts, Dapper Labs implemented structural changes, including efforts to decentralize the Flow blockchain and allow third-party marketplace access for NBA Top Shot NFTs.
In May 2026, Dapper Labs announced it would cease issuing new NFTs on its NFL All Day platform, though existing collectibles remain tradable. This move is part of a strategic pivot to develop a 'next-generation' NFL digital collectible product, with details expected before the September 2026 NFL season. Despite these adjustments, Dapper Labs continues to innovate; its Disney Pinnacle platform, launched in early 2024, saw record-breaking sales in February 2026, and NBA Top Shot announced on-chain permanence for its collectibles in October 2025, alongside ongoing activations and sales. As of July 2026, Dapper Labs' share price was estimated at $11.44, and the company reported $79.2 million in assets in June 2026, indicating continued operations and a focus on long-term sustainability in the evolving Web3 landscape.
What If...?
Explore alternate histories. What if Dapper Labs made different choices?