• BTC Dominance: %
XBT.Market
Advertisement
  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us
No Result
View All Result
XBT.Market
No Result
View All Result
Home Bitcoin

Yuga Labs ‘inappropriately induced’ BAYC investors: Class action

Jon Hartney by Jon Hartney
July 25, 2022
in Bitcoin, Blockchain, Business, Market
0
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Law firm Scott+Scott alleges that Yuga Labs promoted a chance at huge returns on investment to “unsuspecting investors.”

A proposed class-action lawsuit alleges that Yuga Labs “inappropriately induced” the community to buy Bored Ape Yacht Club non-fungible tokens (NFTs) and the project’s affiliated ApeCoin (APE) token.

The proposed class-action driven by law firm Scott+Scott was published on July 21, claiming that Yuga Labs used celebrity promoters and endorsements to “inflate the price” of the BAYC NFTs and the APE token.

Related articles

Bitcoin derivatives data shows room for BTC price to move higher this week

January 23, 2023

Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher

January 22, 2023

It also alleges that Yuga Labs promoted the growth prospects and chance for huge returns on investment to “unsuspecting investors.”

“After selling off millions of dollars of fraudulently promoted NFTs, YUGA LABS launched the Ape Coin to further fleece investors.”

“Once it was revealed that the touted growth was entirely dependent on continued promotion (as opposed to actual utility or underlying technology) retail investors were left with tokens that had lost over 87% from the inflated price high on April 28, 2022,” it added.

The law firm is currently seeking impacted investors who suffered losses on BAYC NFTs and Apecoin between April and June of this year.

During this timeframe, APE surged to its all-time high of $26.70, before dropping roughly 82.5% to $4.66 at the end of June, while the floor price went from 151.5 Ether (ETH) down to 92.9 ETH.

So there's a class action lawsuit against @yugalabs as investors were "inappropriately induced to buy financial products created by Yuga Labs".

Extremely ridiculous Take responsibility for your own actions people. https://t.co/WeuVVLNGv6 pic.twitter.com/7c9Jywvv9V

— Kevin Wu (@kevwuzy) July 24, 2022

The community seems to be relatively unfazed by the proposed lawsuit, with BAYC hodler @SoapBoxCar suggesting via Twitter on July 24 that a bunch of people are mad they bought at the top and “got rekt.”

User @briann6211 also highlighted an interesting point in that Yuga Labs “never created a token… Apecoin DAO created a token which was then adopted” by the firm. Several members also noted that the Apecoin tanked after a free airdrop to BAYC holders, while the broader market was also suffering from a sharp downturn at the time.

Ironically yuga labs never created a token… Apecoin DAO created a token which was then adopted by Yuga Labs

— Brian (@briann6211) July 24, 2022

If the lawsuit eventually gets taken to court, it appears that Scott+Scott will need to prove that Yuga Labs and its celebrity promoters failed to disclose their paid advertisements, as they are legally required to do so.

As the law firm is also claiming a pump and dump occurred, it would need to prove that Yuga Labs engaged in such practices, which may difficult given the strength of Yuga Labs’ projects.

Pump and dumps, or rug pulls usually imply that a project has dumped artificially inflated assets on a community before abandoning the project altogether.

Related: ApeCoin price eyes 45% rally following Otherside metaverse demo

The nature of Apecoin and BAYC NFTs may also be tricky, as the law firm may have to argue that they were promoted as investment contracts under the category of unregistered securities.

Cointelegraph has reached out to Yuga Labs for comment on the proposed lawsuit, but is yet to hear back from the company.

Read Entire Article
Tags: CointelegraphCryptocurrencyInvestmentMining Bitcoin
Share76Tweet47

Related Posts

Bitcoin derivatives data shows room for BTC price to move higher this week

by Jon Hartney
January 23, 2023
0

BTC options data suggest that the Bitcoin price rally still has legs, even with wider economic concerns growing and the

Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher

by Jon Hartney
January 22, 2023
0

BTC could take a break from its sharp rally and if BTC price bounces off underlying support, APE, MANA, AAVE...

Genesis bankruptcy case scheduled for first hearing

by Jon Hartney
January 22, 2023
0

The first hearing in Genesis Capital's bankruptcy case will be held on January 23, according to court filings

Terra lending protocol Mars to launch mainnet

by Jon Hartney
January 22, 2023
0

The Mars Hub will launch an independent Cosmos application chain and issue MARS to users who hold the token during...

Central African Republic eyes legal framework for crypto adoption

by Jon Hartney
January 22, 2023
0

A 15-member committee is tasked with working on a legal framework that will allow cryptocurrencies to operate in

Load More
  • Trending
  • Comments
  • Latest

Ethereum Classic gets ‘endorsement’ from Vitalik Buterin, but ETC price still risks 50% crash

July 27, 2022

Critique on Helium’s $6.5K monthly revenue causes a stir

July 28, 2022

All aboard! Elon Musk’s Vegas Loop now taking Dogecoin payments

July 7, 2022

Cardano Vasil hard fork hit with another delay for several weeks

July 29, 2022

All aboard! Elon Musk’s Vegas Loop now taking Dogecoin payments

0

Crypto owners banned from working on US Government crypto policies

0

Korean startup Uprise lost $20M shorting LUNC

0

Ethereum testnet Merge mostly successful — ‘Hiccups will not delay the Merge.’

0

Bitcoin derivatives data shows room for BTC price to move higher this week

January 23, 2023

Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher

January 22, 2023

Genesis bankruptcy case scheduled for first hearing

January 22, 2023

Terra lending protocol Mars to launch mainnet

January 22, 2023

XBT.Market

This website is an automated news feed powered by the Nebulome cloud system. The site is made possible by YYC TECH Consulting and Alberta Digital Mining Company. As a team with major crypto and bitcoin enthusiasm, we have curated major sources of news, trading and financial data to bring you, our viewer, an unbiased source of truth.

Recent Posts

  • Bitcoin derivatives data shows room for BTC price to move higher this week January 23, 2023
  • Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher January 22, 2023
  • Genesis bankruptcy case scheduled for first hearing January 22, 2023
  • Terra lending protocol Mars to launch mainnet January 22, 2023
  • Central African Republic eyes legal framework for crypto adoption January 22, 2023

News Categories

  • Bitcoin
  • Blockchain
  • Business
  • Market

Tags

bitcoinMagzine Cointelegraph Cryptocurrency insidebitcoins Investment Mining Bitcoin NewsBTC

Quicklinks

  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us

© 2022 Xbt.Market - Powered by YYC Tech Consulting & ADMCO.

No Result
View All Result
  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us

© 2022 Xbt.Market by Nebulome.

  • bitcoinBitcoin(BTC)$22,847.00-1.76%
  • ethereumEthereum(ETH)$1,635.40-2.51%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.000.21%
  • binancecoinBNB(BNB)$325.59-1.79%
  • usd-coinUSD Coin(USDC)$1.000.45%
  • rippleXRP(XRP)$0.395122-1.49%
  • Binance USDBinance USD(BUSD)$1.000.46%
  • cardanoCardano(ADA)$0.385724-3.16%
  • dogecoinDogecoin(DOGE)$0.088373-4.51%
  • matic-networkPolygon(MATIC)$1.26-0.24%
  • OKBOKB(OKB)$44.30-3.06%
  • SolanaSolana(SOL)$22.67-4.96%
  • Lido Staked EtherLido Staked Ether(STETH)$1,635.68-2.29%
  • polkadotPolkadot(DOT)$6.65-4.15%
  • Shiba InuShiba Inu(SHIB)$0.000013-7.13%
  • litecoinLitecoin(LTC)$97.60-3.40%
  • AvalancheAvalanche(AVAX)$19.69-4.89%
  • tronTRON(TRX)$0.0661440.09%
  • daiDai(DAI)$1.000.17%
  • UniswapUniswap(UNI)$6.67-4.22%
  • cosmosCosmos Hub(ATOM)$14.79-1.60%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$22,869.00-1.45%
  • chainlinkChainlink(LINK)$7.06-1.72%
  • ToncoinToncoin(TON)$2.28-3.86%
  • leo-tokenLEO Token(LEO)$3.380.25%
  • ethereum-classicEthereum Classic(ETC)$22.26-3.49%
  • moneroMonero(XMR)$165.87-1.12%
  • bitcoin-cashBitcoin Cash(BCH)$130.02-3.87%
  • Aerarium FiAerarium Fi(AERA)$7.14-13.09%
  • stellarStellar(XLM)$0.090056-2.03%
  • AptosAptos(APT)$14.39-10.76%
  • Lido DAOLido DAO(LDO)$2.713.54%
  • NEAR ProtocolNEAR Protocol(NEAR)$2.542.27%
  • CronosCronos(CRO)$0.082298-1.50%
  • ApeCoinApeCoin(APE)$5.62-6.63%
  • filecoinFilecoin(FIL)$5.25-5.43%
  • QuantQuant(QNT)$137.54-2.63%
  • algorandAlgorand(ALGO)$0.277457-1.10%
  • HederaHedera(HBAR)$0.073111-1.20%
  • vechainVeChain(VET)$0.025309-4.90%
  • Internet ComputerInternet Computer(ICP)$5.58-4.28%
  • The GraphThe Graph(GRT)$0.173932-12.84%
  • The SandboxThe Sandbox(SAND)$0.81-8.81%
  • FantomFantom(FTM)$0.51-12.74%
  • Axie InfinityAxie Infinity(AXS)$11.690.21%
  • decentralandDecentraland(MANA)$0.74-7.37%
  • AaveAave(AAVE)$84.52-4.50%
  • eosEOS(EOS)$1.07-4.22%
  • MultiversXMultiversX(EGLD)$45.25-5.73%
  • FlowFlow(FLOW)$1.09-9.33%
  • theta-tokenTheta Network(THETA)$1.12-6.16%
  • tezosTezos(XTZ)$1.19-4.04%
  • Terra Luna ClassicTerra Luna Classic(LUNC)$0.000177-4.26%
  • FraxFrax(FRAX)$1.00-0.31%
  • Frax ShareFrax Share(FXS)$13.255.33%
  • paxos-standardPax Dollar(USDP)$1.011.45%
  • true-usdTrueUSD(TUSD)$1.000.41%
  • Rocket PoolRocket Pool(RPL)$45.688.25%
  • huobi-tokenHuobi(HT)$5.26-8.17%
  • kucoin-sharesKuCoin(KCS)$8.61-1.79%
  • havvenSynthetix Network(SNX)$2.62-10.70%
  • bitcoin-cash-svBitcoin SV(BSV)$42.49-2.44%
  • ChilizChiliz(CHZ)$0.150865-8.70%
  • Curve DAOCurve DAO(CRV)$1.07-3.08%
  • ImmutableXImmutableX(IMX)$0.99-11.96%
  • PancakeSwapPancakeSwap(CAKE)$4.590.69%
  • USDDUSDD(USDD)$0.990.19%
  • BitTorrentBitTorrent(BTT)$0.000001-1.48%
  • eCasheCash(XEC)$0.000036-4.82%
  • dashDash(DASH)$62.75-5.18%
  • makerMaker(MKR)$763.84-5.50%
  • BitDAOBitDAO(BIT)$0.58-2.34%
  • iotaIOTA(MIOTA)$0.239901-4.53%
  • Mina ProtocolMina Protocol(MINA)$0.80-7.77%
  • GateGate(GT)$4.44-0.32%
  • KlaytnKlaytn(KLAY)$0.205647-5.19%
  • neoNEO(NEO)$8.99-2.24%
  • Trust WalletTrust Wallet(TWT)$1.51-5.83%
  • OKCOKC(OKT)$32.711.21%
  • ArweaveArweave(AR)$11.50-10.58%
  • OsmosisOsmosis(OSMO)$1.10-0.08%
  • OptimismOptimism(OP)$2.64-14.35%
  • cUSDCcUSDC(CUSDC)$0.0227710.09%
  • gemini-dollarGemini Dollar(GUSD)$1.000.31%
  • zcashZcash(ZEC)$44.32-5.25%
  • THORChainTHORChain(RUNE)$1.84-5.54%
  • cDAIcDAI(CDAI)$0.022149-0.04%
  • GMXGMX(GMX)$65.16-7.79%
  • singularitynetSingularityNET(AGIX)$0.425515-32.98%
  • Baby Doge CoinBaby Doge Coin(BABYDOGE)$0.000000-0.40%
  • Tokenize XchangeTokenize Xchange(TKX)$6.76-1.06%
  • RadixRadix(XRD)$0.050343-0.18%
  • PAX GoldPAX Gold(PAXG)$1,872.390.57%
  • RenderRender(RNDR)$1.59-24.03%
  • enjincoinEnjin Coin(ENJ)$0.487707-6.19%
  • Fetch.aiFetch.ai(FET)$0.454198-20.94%
  • zilliqaZilliqa(ZIL)$0.029698-3.70%
  • Convex FinanceConvex Finance(CVX)$6.27-5.73%
  • cETHcETH(CETH)$32.94-2.32%