Sotheby’s Dismisses BAYC Lawsuit as ‘Groundless’
- admin_hrv2xlob
- March 21, 2024
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Auction house Sotheby’s has responded to allegations made by investors in Bored Ape Yacht Club (BAYC), dismissing the lawsuit as opportunistic and without merit. The lawsuit, which includes a class action suit against Yuga Labs, the creators of BAYC, named Sotheby’s as a defendant.
In response to the claims, Sotheby’s stated that it will vigorously defend itself against the baseless allegations. Yuga Labs also echoed this sentiment, describing the lawsuit as opportunistic and lacking factual basis. Yuga Labs has previously faced legal issues regarding BAYC images used by a developer that implied a partnership.
The lawsuit, filed in December 2022, alleges that Sotheby’s and Yuga Labs collaborated to deceptively promote digital art in the BAYC NFT collection. The plaintiffs argue that the auction of 101 NFTs from the Bored Ape collection, which generated $24 million, lent legitimacy to future misrepresentations by the defendants.
However, the NFT market has faced challenges in recent times. In 2022, the market experienced a downturn alongside falling cryptocurrency prices and rising interest rates by central banks. This macroeconomic situation, combined with the so-called “crypto winter,” has impacted NFT sales and caused a decline in the market.
The Bored Ape collection has also been affected by the challenges of the market. The value of its token reportedly dropped over 93% from its peak in April 2022. Industry experts, such as Devin Finzer, CEO of OpenSea, suggest that the intersection of macroeconomic factors and the crypto winter may prolong the current market downturn.
It is important to note that all investment/financial opinions expressed by NFTevening.com are not recommendations. This article is intended as educational material. As always, individuals are advised to conduct their own research before making any investment decisions.
Overall, Sotheby’s and Yuga Labs deny the allegations made against them in the BAYC investor lawsuit and assert that the claims lack merit. The outcome of the lawsuit and the impact it may have on the NFT market remains to be seen.