An upcoming case for the Bored Ape Yacht Club (BAYC)?

Should the Bored Ape Yacht Club (BAYC) community expect strong weather? It is possible, if we believe that it is an initiative of a law firm, which seeks to unite investors who consider themselves defrauded by the company Yuga Labs. What can we blame him for?

The Bored Ape Yacht Club (BAYC) threatened legal action

The initiative is American, and it comes from the law firm Scott+Scott. He accused the company responsible for the Bored Ape Yacht Club, Yuga Labs, of misleading investors. The latter would have encouraged investors to buy its products – which according to the lawyers’ financial securities – by promising them a guaranteed return on investment.

But as we know, the prices of non-fungible tokens (NFTs) from Yuga Labs (and cryptocurrencies in general) have fallen in recent months. So the law firm believes that the investors were defrauded, and wants to recover the “lost” funds. Its statement explains as follows:

Yuga Labs executives used celebrity promotions to increase the price of NFTs and the company’s token [l’ApeCoin (APE) ndlr]by promoting the prospects of growth and great return on investment to innocent investors.»

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Gathering of investors

So far, no formal complaint has been filed. Scott+Scott, however, intends to unite enough investors who believe they have been defrauded, to initiate legal proceedings. This is aimed at those who have purchased products from Yuga Labs between April and March this year.

A broader question to ask: the financial securities of NFT? If the question seems familiar to you, it is because it has been asked many times in the ecosystem, for “classic” cryptocurrencies.

The United States Securities and Exchange Commission has repeatedly sued projects – including Ripple (XRP), accusing them of defrauding investors in a similar way. However, we are far from certain that the SEC will validate this interpretation of Scott+Scott. Doing so would obligate them to cover a very wide areathat of art for example.

This type of lawsuit is a deterrent to the cryptocurrency industry. Investors who consider themselves cheated sometimes gather to face the project they believed in until then. This begs the question personal responsibility of investorsand the companies.

Can we really blame a field that promotes freedom of choice and research to insufficiently protected investors? This is the question that the Yuga Labs test will partially answer if it does.

👉 Also Read – First successful trip to the Otherside, Yuga Labs’ metaverse

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Source: Scott+Scott

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