Sotheby’s Responds to Allegations in Bored Ape Lawsuit
Auction house Sotheby’s has dismissed the allegations made against it by Bored Ape investors as opportunistic and without merit. The investors filed a class action suit against Yuga Labs, the creators of Bored Ape Yacht Club (BAYC), claiming a conspiracy between Sotheby’s and Yuga Labs to misrepresent digital arts in the NFT collection. Sotheby’s listed Bored Ape creations in September 2021, generating $24 million. The plaintiffs argue that this move legitimized the defendants and allowed for future misrepresentations. Sotheby’s stated it will vigorously defend itself against the allegations, which it deems baseless. Yuga Labs also described the complaint as opportunistic.
The Falling NFT Market
- NFT sales in Q3 2022 amounted to $3.4 billion, down from $8.4 billion in Q2.
- Declining values were influenced by the fall of the Terra network and a general decline in the digital art market.
- The NFT market and decentralized finance (DeFi) suffered amid the falling prices of digital assets.
- The market was heavily influenced by high crypto prices in 2021, particularly Bitcoin trading over $69,000.
- The current market downturn is attributed to both the macroeconomic environment and the crypto winter.
The Plunge of the Bored Apes Collection
The Bored Apes collection has also experienced a significant decline in value this year. The token’s price has dropped over 93% from its record high in April 2022.
Hot Take:
The class action lawsuit against Yuga Labs and Sotheby’s highlights the growing scrutiny faced by the NFT market. As the market experiences a downturn and investors face losses, legal actions are being taken to hold creators and institutions accountable for their roles in promoting and selling digital art. This lawsuit serves as a reminder for investors to exercise caution and for industry participants to ensure transparency and ethical practices.
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