Yuga Labs "Inappropriately Induced" the Community to Buy BAYC NFTs
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Yuga Labs Introduced ApeCoin
YUGA LABS introduced the ApeCoin to "further defraud investors" after selling off millions of dollars worth of "falsely advertised NFTs." Affected investors who lost money on BAYC NFTs and Apecoin between April and June of this year are being sought out by the law firm.
If the case ever makes it to court, it appears that Scott+Scott will have to demonstrate that Yuga Labs and its celebrity sponsors violated the law by failing to disclose their paid marketing. Given the strength of Yuga Labs' initiatives and the fact that the law firm is also alleging a pump and dump incident, it may be challenging to demonstrate that it engaged in such tactics. Pump and dumps, also known as rug pulls, typically indicate that a project has artificially overvalued community assets before abandoning it altogether.