Creators of Bored Ape Yacht Club accused of NFT and ApeCoin pump
Law firm Scott+Scott is preparing to file a class-action lawsuit against Yuga Labs, the company behind the Bored Ape Yacht Club NFT collection (BAYC) and the project ApeCoin (APE).
According to the statement, the firm ‘unreasonably induced’ investors to buy ‘their financial products’. Yuga Labs allegedly used celebrity-endorsed advertising to pump the price of the NFT and the token.
“As soon as it became clear that the advertised growth depended entirely on promotion, retail investors were left with tokens that had fallen more than 87% from the inflated price on April 28, 2022,” the lawyers said.
The firm is in the preliminary stages of seeking participants for the class action. The complaint has not yet been filed in court.
After launch on March 17, APE traded at around $8.50. On April 28 the token price reached $27.50, and at the time of writing it had fallen to $6.20. The coin had lost about 78% from its peak.
![\"Creators](\"https://forklog.com/wp-content/uploads/image1-525-1024x801.png\")
Crypto enthusiasts on Twitter urged investors to “take responsibility for their own actions”.
\n
So there’s a class action lawsuit against @yugalabs as investors were «inappropriately induced to buy financial products created by Yuga Labs».<\/p>\n
Extremely ridiculous😂 Take responsibility for your own actions people. https://t.co/WeuVVLNGv6 pic.twitter.com/7c9Jywvv9V<\/p>\n
— Kevin Wu 🦾🤖🦾 (@kevwuzy) July 24, 2022<\/p>\n<\/blockquote>\n
<\/p>
Another user called potential plaintiffs ‘a bunch of crazy people’ who bought APE at the highs.
\n
Lolz this lawsuit against @yugalabs is just a bunch of people mad cuz they bought the top of the $APE ApeCoin chart and got rekt. 🤣 pic.twitter.com/8v8pOdg1mg
\n
— chefdisco.eth ᵍᵐ 🍌 (@SoapBoxCar) July 24, 2022
\n
\n \n
Earlier BAYC was supported by Eminem, Snoop Dogg, Madonna and other celebrities.
In March, Yuga Labs raised $450 million in a funding round at a $4 billion valuation.
In early May ApeCoin fell by 30% amid the launch of the Otherside metaverse. On the same day the NFT marketplace OpenSea announced that APE would be accepted as a form of payment.
Read ForkLog’s Bitcoin news in our Telegram — cryptocurrency news, prices and analytics.
Нашли ошибку в тексте? Выделите ее и нажмите CTRL+ENTERРассылки ForkLog: держите руку на пульсе биткоин-индустрии!