Investors may have new demands for Yuga Labs, which could cause the company new problems. Investors are likely to sue the founder of Bored Ape Yacht Club over the release of Ape Coin (APE), which is seen as a fraud.
Bored Ape Yacht Club Founder Considered A Con Artist
Yuga Labs, it seems, will be the next crypto company to face lawsuits from outsiders. It was said that some people who had put money into the NFT Bored Ape Yacht Club and Ape Coin wanted to sue Yuga Labs.
The claim was made based on the idea that fraud was done through promotions that were seen as deceptive because Yuga Labs used some famous people.
Investors who want to sue think that prices are being messed with in a way that helps insiders and celebrities but hurts investors.
Reports say the investors filed a lawsuit through a law firm called Scott+Scott. This firm will probably represent Yuga Labs in court.
The heart of this problem is that investors feel like they’ve lost out because the price of tokens and NFTs has dropped significantly since global celebrities started talking about them.
An attorney from Scott+Scott said, “After selling millions of US dollars in an NFT promotion, Yuga Labs launched ApeCoin to continue to attract and scam investors.”
It’s important to note that ApeCoin lost a lot of money because when it first came out, the price went up quickly to $27 and was pushed by celebrities, but now it’s only worth $6.
Lawyers from Scott+Scott said that investors who lost money on NFT or tokens from Yuga Labs between April 2022 and June 2022 should join this lawsuit as soon as possible.
Yuga Labs Keeps Getting Bigger
Early in 2022, Yuga Labs got $450 million in funding to build the Otherside metaverse for the Bored Ape Yacht Club.
Andreessen Horowitz’s chairman led the funding. Andreessen Horowitz is one of the top crypto venture capital firms in Silicon Valley.
Yuga Labs is now worth $4 billion more than before the funding, even though its only products are still NFT and tokens.
After getting the money, Yuga Labs started building a metaverse called Otherside and made an NFT called Otherdeeds, which would later be used as virtual land in the metaverse.
Even now, celebrities like Eminem and Snoop Dogg continue to spread the word about Bored Ape Yacht Club, which has helped the club become more well-known.
The two musicians put on a concert, made a music video in which they used, and showed off their Bored Ape Yacht Club characters. They helped get more people interested in the NFT.
Serena Williams, Justin Bieber, and Neymar are some of the other famous people who helped make Bored Ape Yacht Club famous.
For now, it looks like Yuga Labs is being sued, not the celebrities promoting the NFT project and Yuga Labs’ tokens.
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