- SEC will be investigating Yuga Labs.
- The US agency will investigate the sale of BAYC NFTs and the distribution of ApeCoin.
- ApeCoin prices went down after the SEC probe news broke out on the internet.
The US agency, SEC has always been in the news over multiple probes into several cryptos and NFT related firms. Recently the United States Securities and Exchange Commission is investigating the Yuga Labs.
Yuga Labs is the development team behind the popular Bored Ape Yacht Club NFTs. The agency will be investigating the sales of BAYC NFTs and the distribution of ApeCoin.
As per the reports the agency will be looking into if the firm has broken any rules while distributing NFTs which act like stocks.
Yuga Labs has been one of the firms that were never questioned. The company responded on the matter by saying,
It’s well-known that policymakers and regulators have sought to learn more about the novel world of Web3. We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem,
Yuga Labs also added,
As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way.
As soon as the news broke out in the community that SEC is investigating Yuga Labs over potential federal rules violation, ApeCoin holders are cashing out.
In the past 24 hours, the price of ApeCoin has fallen over by 11%. As of now, it is trading at $4.70 which was somewhere near $5.27.
In the case of ApeCoin, Yuga labs have made their stand clear stating that they are not the official creator of ApeCoin.
According to the ApeCoin website, the Ape Foundation is the “steward” of the Ethereum-based token, which is designed to be used throughout the growing Bored Ape ecosystem of apps and marketplaces.
BAYC NFT collection is one of the top and most expensive collections after CryptoPunks. It is a collection of 10,000 unique NFTs portraying Ape with different facial expressions, clothes, accessories, and other attributes.