The NFT world was shocked last week when the SEC investigated Bored Ape Yacht Club parent company Yuga Labs for potential securities violations in connection with the sale of Bored Ape NFTs and ApeCoin tokens, according to Bloomberg, citing an anonymous source.
The APE drop was more than 10% and some legal experts say that SEC Chair Gary Gensler is clearly widening his regulatory net to include NFTs.
Hence, NFTs are being examined by Bored Ape Yacht Club co-founder Greg Solano, in spite of everything else that is happening.
In April 2021, Bored Ape Yacht Club released a series of monkey JPEGs that became popular almost immediately. By the end of 2019, Yuga Labs, the company’s parent company, had a $4 billion valuation and also controlled CryptoPunks and Meebits. Yuga, by itself, controlled the four largest NFT collections by market capital.
