Yuga Labs “Unsuitably Induced” The Neighborhood To Purchase BAYC NFTs
According to a planned class-action complaint, Yuga Labs allegedly “inappropriately persuaded” the community to buy Bored Ape Yacht Club non-fungible tokens (NFTs) and the project’s related ApeCoin (APE). Furthermore, it asserts that Yuga enticed “unsuspecting investors” by hyping the growth prospects and likelihood of huge returns.
Yuga Labs Introduced ApeCoin
Following the sale of “falsely touted NFTs” valued at millions of dollars, YUGA LABS created the ApeCoin to “further mislead investors.” The law company is looking for impacted investors who lost money on BAYC NFTs and Apecoin between April and June of this year.
It appears that Scott+Scott will need to show that Yuga Labs and its celebrity sponsors broke the law by neglecting to disclose their paid promotion if the case ever goes to court.
It might be hard to prove that Yuga Labs used such strategies given the success of its projects and the fact that the law firm is also alleging a pump and dump issue. Pump and dumps, sometimes referred to as rug pulls, typically show that a project has artificially inflated local resources before completely abandoning it.
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