SNEAK PEEK
- According to a lawsuit, Yuga Labs “inappropriately induced” the neighborhood to buy NFTs for the Bored Ape Yacht Club and the project’s related APE coin.
- Furthermore, it asserts that Yuga Labs misled “unsuspecting investors” about the growth prospects and likelihood of huge returns on their investments.
- According to BAYC hodler SoapBoxCar, the anticipated litigation doesn’t seem to have much of an influence on the area.
According to a planned class-action complaint, Yuga Labs “inappropriately persuaded” the community to purchase non-fungible tokens (NFTs) for the Bored Ape Yacht Club and the project’s associated ApeCoin (APE) token.
So there’s a class action lawsuit against @yugalabs as investors were “inappropriately induced to buy financial products created by Yuga Labs”.
— Kevin Wu 🦾🤖🦾 (@kevwuzy) July 24, 2022
Extremely ridiculous😂 Take responsibility for your own actions people. https://t.co/WeuVVLNGv6 pic.twitter.com/7c9Jywvv9V
On Thursday, a proposed class action brought by the legal firm Scott+Scott was released, alleging that Yuga Labs had “inflated the price” of the BAYC NFTs and the APE token by using celebrity endorsers and promoters.
Additionally, it claims that Yuga Labs sold “unsuspecting investors” on the growth prospects and potential for enormous profits on their investments. It also stated that After selling off millions of dollars worth of falsely advertised NFTs, YUGA LABS introduced the Ape Coin to defraud investors even more.
Apart from this, the lawsuit pointed out that retail investors were left with tokens that had lost more than 87% of their value from the exaggerated price high on April 28, 2022, once it became clear that the growth that had been projected was completely contingent on ongoing promotion.
Affected investors who lost money on BAYC NFTs and Apecoin between April and June of this year are being sought by the law firm.
APE reached an all-time high of $26.70 over this period before falling around 82.5% to $4.66 at the end of June, while the floor price decreased from 151.5 ETH to 92.9 ETH.
The anticipated lawsuit doesn’t seem to have much of an impact on the neighborhood, according to BAYC hodler SoapBoxCar, who tweeted on Sunday that many people are upset they “got rekt” when they bought at the top.
User briann6211 also mentioned that Yuga Labs “never produced a token… Apecoin DAO created a token that was eventually used” by the business.
Ironically yuga labs never created a token… Apecoin DAO created a token which was then adopted by Yuga Labs
— Brian (@briann6211) July 24, 2022
It appears that Scott+Scott will need to provide evidence that Yuga Labs and its celebrity sponsors broke the law by neglecting to disclose their paid promotion if the case is ever heard in court. Given the strength of Yuga Labs’ initiatives, it may be challenging to demonstrate that Yuga Labs engaged in such tactics.
