Yuga Labs-associated NFTs, token falls following SEC probe Yuga Labs-associated NFTs, token falls following SEC probe
Yuga Labs has downplayed the investigations as mere cooperation with the SEC to provide information about the space.
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Updated: Oct. 12, 2022 at 1:39 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Yuga Labs has seen the value of assets associated with its brand decline following news of the SEC’s investigation into whether it broke federal laws.
Bored Ape, ApeCoin, others tank
Bored Ape’s floor price fell 3.31% in the last 24 hours to 73 ETH ( $94,947). The blue-chip collection had shed over 6% of its value on the seven days metric.
The floor price of Mutant Ape is down 2.7% over this period to 14 ETH ($18,200). On the seven days metric, its value is 2.89% up.
The floor price of other NFTs related to Yuga Labs, like CryptoPunks and Meebits, was also down by 0.15% and 2.18%, respectively.
Meanwhile, the governance and utility token for the Bored Ape ecosystem ApeCoin (APE) dropped 7% and is exchanging hands for $4.76.
SEC is investigating Yuga Labs
Bloomberg reported that the SEC was investigating whether Yuga Labs violated federal securities law with the sales of its NFT s.
According to the report, the SEC is considering whether the NFTs issued by the company are more like stock and, therefore, should follow the same rules. The regulator was also investigating whether ApeCoin qualified as securities.
The report noted that the SEC might be seeking more clarity about the space, and there was no accusation of wrongdoing.
Yuga Labs reportedly said:
“It’s well-known that policymakers and regulators have sought to learn more about the novel world of web3. We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem.”
Meanwhile, the crypto community criticized the SEC’s regulation by enforcement approach towards the industry. The regulator is currently embroiled in several lawsuits against crypto firms, alleging they broke the securities law with their assets.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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ApeCoin is an ERC-20 governance and utility token used within the APE Ecosystem to empower and incentivize a decentralized community building at the forefront of web3.
Yuga Labs
Yuga Labs is one of the savviest marketers of NFT brands, including Bored Ape Yacht Club, a collection of 10,000 Bored Ape NFTs—unique digital collectibles living on the Ethereum blockchain.
Bored Ape Yacht Club
Bored Ape Yacht Club, or often colloquially called Bored Ape, is a non-fungible token collection built on the Ethereum blockchain.
CryptoPunks
CryptoPunks is a non-fungible token collection with 10,000 unique characters stored on the Ethereum blockchain and were the inspirations for the ERC-721 standard that powers most digital art and collectibles.
