Times of financial crisis are rarely the most interesting and constructive. Except those who are in the camp of those who buy back the risky investments of others at a low price. Because the trend quickly turns into a greedy and aggressive search for responsible people, most often different from themselves. Particularly in the cryptocurrency sector, as volatile as it is (almost) devoid of any centralized structures to complain about. But nothing, because law firms offer to fix this by launching risky collective actions. The latter is against the Yuga Labs studio, which is responsible for the Bored Ape yacht club and the APE cryptocurrency.
The Bored Ape Yacht Club (BAYC) project, since its launch, has become a symbol of the euphoria that has gripped the NFT token sector. With a floor price that remains unabashedly above 85 ETH (around $130,000) while their selling price was below $100. And the hyperactive development dynamics that led to the emergence of the APE cryptocurrency, and more recently, to the Otherside metaverse. Every time with real success.
A dynamic that is also the source of many criticisms of Yuga Labs, the studio responsible for this digital success story. We are talking about dubious acquaintances with neo-Nazi iconography, which is sometimes very alarming. Or even in relation to the tokenomics of the APE cryptocurrency, which is very far from decentralization and Web3, as its initiators assure us. The latter is presented as independent from Yuga Labs, which would only accept it after launch. Important detail for the rest of this case.
Yuga Labs opposes class action
This case clearly comes from the United States. This is a country where you can file a complaint about almost all the consequences of stupid behavior, if there was no explicit warning not to do so. And between the one who dived into the pool of 10 cm of water, and this dog, which died from being dried in the microwave, is now Yuga Labs. This is part of a class action lawsuit initiated by the law firm Scott+Scott. In the meantime, clearly looking for investors to line up in the ranks of potential plaintiffs. Purpose: “to claim compensation for losses incurred in the purchase of Yuga Labs and NFT tokens.”
“Yuga Labs investors were improperly incentivized to purchase financial products, namely ApeCoin and non-fungible Bored Ape Yacht Club (“NFT”) tokens. Yuga Labs management used celebrities and endorsements to inflate the prices of NFTs and the company’s tokens. This tends to promote the prospect of growth and change for a huge return on investment for unsuspecting investors.”
The procedure is still at the stage of a simple solicitation of an offer. Because there has not yet been an official complaint from Scott + Scott in this case (if it really exists). The main workhorse is the ability to deposit NFT tokens in the Securities and Exchange Commission (SEC) financial securities box. This would constitute a breach by Yuga Labs regarding their previous registration with this US entity. But this exercise seems risky given the legal uncertainty surrounding these non-fungible tokens at this time.
Yuga Labs – APE cryptocurrency in sights
That is why Scott + Scott is also attacking the APE cryptocurrency, launched in parallel with the Yuga Labs structure. However, the latter was simply “adopted” by the company, once launched in such a way that it was presented as a standalone. A bit like the CRV cryptocurrency of the Curve protocol, August 2020. With this little view, don’t give a damn about the world, while remaining at a sufficient distance not to risk possible legal consequences. Like a class action lawsuit initiated by an obscure law firm that clearly lacks vital information in this area…
“After selling millions of fraudulently promoted NFTs, Yuga Labs launched ApeCoin to attract more investors. Once it was revealed that the advertised growth was entirely dependent on continued promotion (as opposed to actual utility or underlying technology), retail investors were left with tokens that lost over 87% of their value from their April 28 inflated price. 2022.“
However, there is no doubt that this procedure can find some motivated investors. In an attempt to recover all or part of the 76% – at the time of this writing – of losses incurred by the APE cryptocurrency since its ATH on April 28, 2022 ($26.70). But there is only one real question: who is insulting whom in this story? Lawyers from the firm Scott+Scott who suggest that there might be something to gain in the card of this class action. Or Yuga Labs, which sold the now iconic NFTs and suffered the launch of an accepted cryptocurrency. It never presented anything but the possibility of an upsurge that could just as easily become relevant again. You have two hours…