Is Yuga Labs #BoredApeYC really going down?
According to a Bloomberg story, the Securities and Exchange Commission (SEC) of the United States is looking into Yuga Labs’ high-value NFT offers in order to determine whether or not they were sold legally.
The most notable of them are items from the legendary Bored Ape Yacht Club collection, which has made PFP NFTs a household name on Web3.
Bored Ape Yacht Club NFT collection is what Yuga Labs is most known for in the NFT industry. Thanks to the collection’s popularity, Yuga Labs has expanded its media empire to include sponsorships from prestigious sports leagues, high-end companies, and even a game that is ready for the metaverse.
There is no evidence that Yuga Labs has committed any misconduct that has prompted this inquiry. Instead, as a Yuga Labs spokeswoman stated in the Bloomberg piece, it is intended to help politicians and regulators “learn more about the innovative realm of Web3.”
The Securities and Exchange Commission (SEC) of the United States is looking into Yuga Labs to see whether any of the digital assets it is currently selling are infringing on any laws. This contains the exclusive cryptocurrency used by the BAYC community, ApeCoin, as well as the Bored Ape Yacht Club NFT collection and its derivative NFT collections. This study continues a global trend toward more regulation in the cryptocurrency and NFT industries.
Both the White House and the European Union have led measures to make these relatively young venues more welcoming — and secure — for both investors and consumers.
But why concentrate on Yuga Labs in particular? Perhaps the most of the buzz that saw NFTs take their first significant strides into the popular debate came from the Bored Ape Yacht Club NFT collection when it first appeared on the scene in 2021. The NFT market’s 2021 bull run had a kind of a moment in broader mainstream culture thanks in part to how celebrities splashed these expensive NFTs into their social media channels.
By commercializing their valued NFTs in a variety of ways, Bored Ape holders are starting to see the seeds seeded by Yuga Labs begin to grow in 2022, despite the prolonged weak market.
Obviously, there is a price to pay for all of this continuing attention. It seems sense that Yuga Labs has come under closer scrutiny as a result of the company’s rapid rise to prominence among leading online companies. Yuga Labs now has the SEC on its side after surviving a PR crisis brought on by a user making unfounded accusations against its founders. However, that might not be all terrible.
As the SEC pursues its investigation, Yuga has demonstrated a strong desire to collaborate with it, and it aspires for other well-known NFT ventures to take its lead in embracing openness. “We intend to collaborate with other businesses in the sector and government officials to define and reshape the emerging ecosystem. According to a Yuga Labs spokeswoman who talked to Bloomberg, “Yuga is dedicated to fully complying with any enquiries along the road as a pioneer in the sector.”
Could this research lead to a desire to change Supreme Court rulings that are over a century old? A possibility exists. The Howey test, which was the subject of a 1946 Supreme Court decision, is also cited in the Bloomberg story. Can this similarly outdated statistic possibly classify what would characterize future finance? Time will only tell. However, if Yuga Labs continues to cooperate, things in the NFT sphere may go on as usual.