Cryptocurrency ApeCoin (APE) is the worst daily performer in the top 100 in the industry this Tuesday (11). The reason is an ongoing investigation by the US Securities and Exchange Commission (SEC).
Bloomberg reports that the SEC is investigating Yuga Labs, the maker of the Monkey NFT collections. Bored Ape Yacht Club (BAPE) and Mutant Ape Yacht Club (MAYC) to determine whether such assets qualify as securities.
The same applies to ApeCoin (APE), cryptocurrency that was distributed to holders of BAPE NFTs in March this year. The move is yet another SEC attack on the crypto market, marked by several other investigations in recent months.
APE Cryptocurrency Loses 10% After Research Rumors
Listed on the world’s largest exchanges, such as Binance, FTX and Coinbase, cryptocurrency ApeCoin (APE) lost 10% of its value this Tuesday (11) just minutes after Bloomberg announced that the SEC is investigating Yuga Labs.
According to the report, the US agency is investigating whether both of Yuga Labs’ NFT collections (BAPE and BAYC) can be considered securities. After all, they already have purposes other than pure ostentation.
For example, holders of BAPE NFTs received the APE coins in March this year.
In response to Bloomberg, Yuga Labs replied that it is: “committed to fully cooperate with any queries along the way”, as well as looking to partner with regulators to shape the future of web3. Still, this was not enough to appease investors.
On the downside, the base price of BAPE’s NFTs remained intact, near 75.6 ETH. In the current conversion, this amount corresponds to 514 thousand reais.
Finally, it was also reported that the SEC is investigating fractional NFTs, that is, NFTs that can be sold in stocks to facilitate their trading by small players.
Yuga Labs is also being investigated by Anonymous
Meanwhile, Anonymous sent a message to fans of Yuga Labs’ NFT collection two months ago. According to the group, it would investigate allegations of racism related to both the monkey NFTs and the brand that created them.
Therefore, considered the largest collection of NFTs by market value, BAPE is the current target. It remains to be seen whether it will resist accusations from the SEC and the public or lose its No. 1 position in this new market.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
