Apecoin Plummets After SEC Launches Probe into BAYC Developer Yuga Labs
The US SEC has launched a probe into the developer of Bored Ape Yacht Club NFTs (BAYC) NFTs, Yuga Labs. Apecoin, the Ethereum token powering the BAYC metaverse, plunged over 9% on the news.
According to Bloomberg report, federal investigators are looking into whether the sale of Yuga Lab's digital assets fit the definition of a security rather than a commodity or property.
This move by the SEC is a sign towards a far more active stance in regulating the blockchain industry. In particular, Gary Gensler has hinted that Ethereum and all of its smart contract tokens (like Apecoin) are securities.
Apecoin has been called a scam by many skeptics in the crypto industry, as well as critics not involved in the industry. It's often found suspicious how celebrities got involved in the scheme so fast, and how marketing schemes are now evolving from it.
While the scam claims are true or not, may be answered in this investigation.
It's important to note that the SEC is not accusing Yuga Labs of any criminal actions currently. This development merely indicates that the SEC may have found concern in some particular aspect of their scheme and wanted a closer look to confirm through a probe. Based on the token performance, it seems investors are not taking the news very well.