Technology

NFT: Why is Bored Ape Yacht Club at Risk of Suing?

Bored Ape Yacht Club NFTs are at risk of facing a huge lawsuit that could very well change the market for non-fungible tokens.

Following a scam and crypto collapse, NFT Bored Ape Yacht Club is threatened with lawsuits. US law firm Scott+Scott accuses Yuga Labs, the company behind the famous token collection, of defrauding its investors.

empty promises

When the BAYC (short for Bored Ape Yacht Club) series was released, Yuga Labs allegedly lured investors into buying its NFTs by promising them guaranteed returns. Since then, the NFT series has capitalized on the success for which it is known, with sales regularly exceeding hundreds of thousands of euros, a movie project (cancelled), a video game and many copies around the world.

However, the price of NFTs, like cryptocurrencies, fluctuates. After a significant drop in recent months, the law firm handling the case believes BAYC’s investors were deceived and is seeking a refund of lost funds. The file specifically accuses Yuga Labs of using some celebrity fame to fuel the enthusiasm for the project: “Yuga Labs executives used celebrity promotions to drive up the price of the company’s NFTs and tokens, promoting growth prospects and substantial return on investment. innocent investors.

At the moment there are no complaints, but the problem is actual

No official complaints have been received. Currently, the law firm is looking to gather as many investors as possible in order to start the lawsuit in the proper form. All Internet users who bought Yuga Labs products between April and March of this year are concerned.

If successful, the complaint promises to cause serious problems for Yuga Labs as well as the entire NFT market. In particular, it will be about determining once and for all whether NFTs are financial assets. This question often comes up in the realm of non-fiat currencies, and the US Securities and Exchange Commission has repeatedly pursued crypto projects accused of such facts. However, such questions about NFTs are tantamount to questioning the digital art market and investors’ personal responsibility.

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