Law firm Scott+Scott has filed a class action lawsuit against Yuga Labs, accusing it of “luring investors.” Now lawyers are looking for affected users of Bored Apes and Apecoin.
The class-action lawsuit alleges that Yuga Labs deliberately used celebrity advertising, as well as various methods to attract investors and “inflate the price.” Then the advertising stopped, and many remained at a loss.
“After selling millions of dollars of NFTs, Yuga Labs launched Apecoin to further deceive investors. As it turned out, the entire value of the tokens was in constant advertising support and attracting new users. After the campaign ended, retail investors were left with tokens that lost 87% of their price,” the lawsuit says.
Indeed, the Apecoin rate reached $26 back in April, and now the token is trading at $4.8. The minimum price of Bored Ape Yacht Club collection tokens has decreased from 151.5 ETH to 92.9 ETH.
Cryptocurrency community met the lawsuit not too friendly. Most believe that the affected investors are to blame for their losses. Some Twitter users even pointed out that Yuga Labs did not create Apecoin – they only used a token created by Apecoin DAO.
Earlier, Yuga Labs warned of an increase in cyber threats to NFT collector communities and a possible mass attack through social networks.
Source: Bits
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