A law firm intends to file a lawsuit against a popular NFT company, Yuga Labs. The firm alleges that Yuga Labs fraudulently promoted the ApeCoin and Bored Ape Yacht Club.
The law company, Scott+Scott, is representing individuals who bought these assets from April to June. The company has published a report saying the NFT company induced people to buy its financial products.
Additionally, the lawsuit stated that the company used celebrity endorsements and promotions to mislead people. These endorsements inflated the prices of its NFT and ApeCoin token.
NFT Investors To Sue Yuga Labs
According to the investors, they lost around 87% of their total investment since the 28th of April. During the BAYC hype, Yuga Labs said they sold NFTs worth millions. The individuals believe the introduction of the ApeCoin was another attempt to dupe buyers.
Furthermore, the law company has called on other buyers who suffered losses during the same period to come forward. However, the law firm has not filed the complaint in court yet.
Meanwhile, this is an interesting case for the crypto community. Currently, it is uncertain whether NFTs are regarded as securities or not.
Many individuals believe the court would have to take a stand on the classification of NFTs. The result of that decision will change how people view NFTs.
Before now, Yuga Labs had submitted a lawsuit against a popular artist. The company claimed that the artist infringed on its trademark without any notice or permission from the company.
Yuga Labs And The NFT Sector
In other news, Yuga Labs has been making headlines in the NFT industry. Apart from the BAYC NFTs, the company is also working on other projects.
One of the major projects the company is working on is the Otherside metaverse. Unfortunately, the latest cryptocurrency market crash has affected its development.
The sales of Otherside NFT hit a new record low in June. The average sale of the NFT ranges from about $22,000 to $6,000.
Several popular figures have also joined the BAYC frenzy, such as Snoop Dogg and Eminem. These popular artists showcased the BAYC NFTs in their latest music video.
Besides, Yuga Labs is a famous name in the world of NFTs. Unfortunately, the hype surrounding the creation and sales of NFTs seems to have died down in the past months.
Perhaps, it is due to the crypto market decline that started earlier in 2022. However, NFTs remain popular among users in the NFT space.