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Since launching last April, the Bored Ape Yacht Club has quickly established itself and is taking a big chunk of the NFT industry pie. By volume The collection always comes first. In the past 7 days, BAYC’s sales have raised 12 million ETH. In comparison, other collections such as CryptoPunks and Moonbirds show figures of 6.9 million ETH and 3.2 million ETH respectively.
But the shadow overshadows this image. Indeed, Yuga Labs has just been accused of “inappropriately” encouraging its investors to buy its NTF. They are accused of using the same strategy to attract ApeCoin buyers.
The law firm Scott + Scott filed a lawsuit against parent company Bored Ape Yacht Club claiming that Yuga Labs abused investor credulity by using techniques such as celebrity endorsement. Scott + Scott’s official document mentions the following:
YUGA LABS executives have used celebrity endorsements and sponsorships to increase the value of the company’s NFTs and tokens, generally fueling growth prospects and generating huge capital gains for unsuspecting investors.
ApeCoin also targets
This case also targets ApeCoin. Yuga Labs launched its Ethereum-based token in mid-March of this year. The start was quite positive. At the end of April, the token peaked at $ 26. Since then, however, its value has only declined. It is currently $ 6.2.
Using the same argument, the law firm said the company introduced ApeCoin to “scam” investors. He also blamed two projects, BAYC and ApeCoin, for the growth. just for the promotion and the fact that they really didn’t have any use :
After YUGA LABS sold millions of dollars of fraudulently funded NFTs, YUGA LABS launched ApeCoin to continue defrauding investors. When it turned out that advertised growth depended entirely on ongoing advertising (rather than the actual utility of the coin or underlying technology), individual investors were left with tokens trading at more than 87% of the inflated price on April 28, 2022. .
The law firm has urged users who suffered leaks between April 2022 and June 2022 to report it.
BAYC is supported by the NFT community
However, it appears thatCommunity members tend to side with the Bored Ape Yacht Club. In the end, they qualified this case as “real rubbish”. In fact, users quickly shuffled the deck. They claim this case was initiated by a group of investors who bought ApeCoin at the highest level and are now furious to be “righteous”.
Lolz, this lawsuit against @yugalabs is just a bunch of crazy because they bought the top of the ApeCoin chart with $ APE and got it right. 🤣 pic.twitter.com/8v8pOdg1mg
– chefdisco.eth ᵍᵐ 🍌 (@SoapBoxCar) July 24, 2022
Despite the shadow cast by this threat, it exists. big chances for BAYC to resume sales this week. Ethereum gas fees fluctuated around the yearly low. Collectors usually see such opportunities as a great opportunity to create reserves.