Yuga Labs, a company behind the creation of the famous NFT Bored Ape Yacht Club, is on the verge of facing a lawsuit. A law firm Scott+Scott claimed that the company boosted crypto asset prices through inappropriate promotional tactics, resulting in losses to investors. One of the major tactics Yuga Labs adopted is celebrity endorsements to sell NFTs at higher prices. The law firm mentioned that they lured NFT investors to buy ApeCoin and non-fungible tokens.
Top celebrities like influencer Paris Hilton, rapper Snoop Dogg, football star Tom Brady and many others endorsed the BAYC collection. Last year the highest selling price of BAYC artwork was $3.4million.
The law firm has plans for a class-action lawsuit against the NFT company, which allegedly claimed high returns to investors. Well, the complainant is yet to submit an official report regarding the inappropriate promotion to federal court. The law firm Scott+Scott is searching for victims who lost their hard-earned money in Yuga’s NFT collections.
It seems Yuga Labs is under evil spells as they were constantly in the news due to lawsuits. Earlier they sued an artist Ryder Ripps for trolling them and using company trademarks for creating and selling NFTs which are exact copies of bored apes.
As far as the NFT market is concerned, market experts register a plunge because of the downturn in the crypto market. According to the Crypto.com report, the NFT sale was the lowest in July 2022. Furthermore, frauds and scams in the market served as the prime reason for the recent degrading NFT market.