NFTs Linked to Yuga Labs, Token Declines After SEC Investigation

Since learning that the SEC is looking into whether Yuga Labs violated any laws, the price of the assets connected to its brand has decreased.

The floor price for Bored Ape dropped by 3.31% on the previous day to 73 Ethereum (ETH), which is equivalent to $94,947. On a seven-day basis, the blue-chip collection lost more than 6% of its worth.

The Mutant Ape floor price has decreased 2.7% throughout this time to 14 Ethereum (ETH), which is equivalent to $18,200. Its value is up 2.89% over the previous week.

Several Yuga Labs-related NFTs such as Meebits and CryptoPunks saw a floor price decline of 2.18% and 0.15%, accordingly.

The Bored Ape ecosystem’s governance and utility token, ApeCoin (APE), is now trading for $4.76 after falling 7%.

According to Bloomberg, the SEC was looking into whether Yuga Labs sold its NFTs in violation of federal securities legislation.

The SEC is reportedly debating if the company’s NFTs are more similar to stocks and should thus adhere to the same regulations. The watchdog was additionally looking into ApeCoin’s eligibility as a security.

There were no accusations of misconduct, but the study warned that the SEC might want more information about the area.

It was noted by Yuga Labs that “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.”

In the meantime, the crypto community questioned the SEC’s enforcement-based approach to regulating the sector. The regulator is now involved in various litigation against cryptocurrency companies, alleging that they used their assets in violation of securities laws.