Yuga Labs, the firm behind the Bored Ape Yacht Club (BAYC) collection, is facing a class action lawsuit for inappropriately inducing investors to buy NFTs and tokens whose value were artificially affected.
Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world
The law firm Scott+Scott said in a press release that Yuga Labs' top management used celebrity promoters and endorsements to "inflate the price" of BAYC's NFTs and apecoin (APE). The company noted:
"After selling off millions of dollars of fraudulently promoted NFTs, Yuga Labs launched the Ape Coin to further fleece investors."
The law firm says those who suffered losses after they bought Yuga Labs' tokens or NFTs between April 2022 and June 2022 should reach out to it to join the class action lawsuit. At the time of writing, Yuga Labs made no official comments regarding the matter.
The average floor price of BAYC's non-fungible tokens plunged by 44% since May 1 from 153 ETH to 85 ETH, according to data from CoinGecko. At the same time, the price of the APE token also crashed from $25.9 to $6.3 over the past three months.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange