BAYC Creators Could Face a Class Actions Lawsuit

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BAYC Creators Could Face a Class Actions Lawsuit
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Yuga Labs – the US company that created the popular NFT series The Boring Ape Yacht Club (BAYC) – faces a possible class action lawsuit. A group of individual investors claimed that the company inappropriately advertised its tokens in order to deceive people into buying them.

Yuga Labs and its disgruntled investors

Yuga Labs appears to be another group in the crypto space that has to contend with certain issues during the ongoing bear market. Individual investors have complained that some of the company’s products, including ApeCoin, have been misleadingly marketed by celebrities, resulting in unnaturally inflated prices.

As a result, some traders suffered heavy losses once the coin’s valuation plummeted. In search of some kind of justice, they even turned to the US law firm Scott+Scott in an attempt to start a legal battle with Yuga Labs.

“Following the sale of millions of dollars in fraudulent NFTs, Yuga Labs launched ApeCoin to further defraud investors,” the lawyer said.

Notably, ApeCoin, the native token of the Bored Ape Yacht Club, surged to a new all-time high just a month after its launch. At the end of April, APE reached nearly $27. However, it is currently trading away from that peak, hovering around $6.

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“If you suffer losses from purchasing Yuga Labs tokens or NFTs between April 2022 and June 2022, we encourage you to contact Scott+Scott to learn more about your legal rights,” the company notice said. .

The ups and downs of 2022

Earlier this year, Yuga Labs raised $450 million to develop its NFT Metaverse business. The financing, led by Silicon Valley venture capital firm Andreessen Horowitz, raised the company’s valuation to $4 billion.

However, over the next few months, the company’s NFT trading volume began to plummet. In particular, the transaction volume of Otherdeed NFT has fallen by more than 95% from its all-time high. Otherdeeds are digital collectibles used to claim virtual lands in Otherside, a Metaverse space created by Yuga Labs.

Bored Ape Yacht Club (BAYC) – one of the most popular NFT series – has also become less attractive to investors compared to last year’s peak levels. Interest increased slightly last month when Eminem and Snoop Dogg released their latest song, a video clip featuring their personal Bored Apes.

The famous rapper is two of the many celebrities who spent hundreds of thousands of dollars to buy NFTs from the series. Others include tennis champion Serena Williams, Canadian singer Justin Bieber and soccer star Neymar.

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