A lawsuit is being considered because Yuga Labs employed celebrities to promote and artificially inflate the value of both its ApeCoin and BAYC NFTs.
A class-action lawsuit has been presented by the legal firm Scott+Scott, which claims that Yuga Labs, an NFT company, tricked investors into purchasing its digital collectibles. The popular Bored Ape Yacht Club (BAYC) NFTs were developed by Yuga Labs, and its native token is known as the ApeCoin and is presently valued at $6.31. (roughly Rs. 500). According to the planned lawsuit, Yuga Labs employed celebrities to promote and artificially inflate the value of its ApeCoin and BAYC NFTs. The most costly NFTs among the 10,000 offered by BAYC had costs that surpassed $2,272,620. (roughly Rs. 18 crores).
An examination of how ApeCoin reached its all-time high of $26.70 (approximately Rs. 2,130) before falling by 82.5 percent serves as the basis for this lawsuit’s starting point.
The floor price of BAYC NFTs increased by more than 25% in March of this year. The change was brought about by Yuga Labs, the parent company of BAYC, purchasing CryptoPunks and Meebits, two other well-known NFT collections.
The legal company has noted that at June’s end, the floor price, or the lowest price of BAYC NFTs, plummeted from ETH 151.5 to ETH 92.9.
“Yuga Labs investors were improperly persuaded to purchase financial products developed by Yuga Labs, specifically the non-fungible tokens for the Bored Ape Yacht Club and ApeCoin” (BAYC NFTs). The leadership inflated the price of the company’s NFTs and tokens via celebrity boosters and endorsements, according to a blog post written by Scott+Scott.
There are 10,000 different cartoonized, bored-looking apes in the BAYC NFT series. Several famous people, like Jimmy Fallon, Justin Bieber, Madonna, and Snoop Dogg, own pricey BAYC NFTs.
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The legal firm said on its blog that the NFT business developed the ApeCoin to “further defraud” gullible investors after selling off “fraudulently advertised NFTs” for millions of dollars.
According to the blog post, retail investors were left with tokens that had lost over 87 percent from the inflated price high on April 28, 2022. “Once it was revealed that the touted growth was entirely dependent on continued promotion (as opposed to actual utility or underlying technology),” the post noted.
Individual BAYC and ApeCoin investors can join this class action lawsuit against Yuga Labs through avenues created by the legal firm. Holders of BAYC and ApeCoin who believe they have lost money trading BAYC NFTs and ApeCoin between April and June of this year are welcome to join Scott+Scott in their class action lawsuit against Yuga Labs.
On Twitter, parody and opposition to the impending lawsuit are being expressed in the meanwhile.
