Recently there is a class action lawsuit filed against Yuga Labs, founder of the Bored Ape non-fungible token (NFT) collection. According to this report, Yuga Labs would have inappropriately incited investors to buy these NFTs and the associated ApeCoin (APE).
Scott+Scott wants class-action lawsuit
The proposed class-action lawsuit is being led by the law firm Scott+Scott and was released on Thursday. It also stated that Yuga Labs uses famous people to inflate the price of both the Bored Ape Yacht Club (BAYC) NFTs and the APE token.
Scott+Scott is currently still looking for investors who have suffered losses on the BAYC NFTs and ApeCoin between April and June 2022.
Share APE and BAYC fell hard
During this period, APE rose to its all time high from $26.70 before falling hard to $4.66. This is therefore a decrease of 82.5%. In addition, the minimum price for an NFT dropped from 151.5 Ethereum (ETH) to 92.9 ETH.
The report further indicates that Yuga Labs sought to boost growth by promising high returns on investment for “ignorant investors”:
“After selling millions of dollars worth of fraudulently promoted NFTs, YUGA LABS launched the Ape Coin to swindle investors even more.”
“Once it was revealed that the touted growth relied entirely on continued promotion (as opposed to actual utility or underlying technology), retail investors were left with tokens that lost more than 87% from the high price on April 28, 2022,” added Scott. +Scott ready for this.
Law firm still needs proof
Should this case eventually end up in court, the law firm would have to prove a number of things. First that these celebrities were paid for their promotion without indicating this. This is mandatory by law. They should also be able to prove the pump and dump. This could potentially be very difficult for Scott+Scott.
ApeCoin was also recently featured in the Discord environment from Crypto Insiders. Here our analysts have made an analysis based on the chart. In this community you will also quickly come into contact with many different experienced traders and crypto enthusiasts who are always ready to answer your questions.
