Image source: Zipmex
Ethereum-based ApeCoin (APE) token suffered a precipitous crash amid news from the SEC that Yuga Labs, the creator of the Bored Ape Yacht Club, is under investigation.
Price drop
When news of the Securities and Exchange Commission investigation into Yuga Labs surfaced, the token’s price dropped dramatically, dropping nearly 10%.
According to data from CoinGecko, the price fell nearly 11% in the past 24 hours on Wednesday.
At the time, it dropped to $4.67 per token, which was worth $5.27 over the same period.
Since the report came out, APE’s trading volume has nearly doubled over time.
The ApeCoin price sits at $4.58 as of this writing.
Investigations
Earlier Wednesday, Bloomberg reported that the SEC was investigating Yuga Labs for securities violations in the sale of the Bored Ape Yacht Club NFTs.
According to the report shared by an unknown source, the agency is also investigating the distribution of ApeCoin.
ApeCoin was launched earlier this year in March 2022.
The official position of the creators of Bored Ape Yacht Club is that he is not the creator of ApeCoin due to regulatory issues.
According to the official ApeCoin website, the “steward” of the Ethereum-based token is the Ape Foundation.
The foundation is designed for use in the growing ecosystem of Bored Ape apps and marketplaces.
A Board of Directors anchors the Ape Foundation made up of leading Web3 creators, including the following:
- Reddit co-founder Alexis Ohanian
- FTX Ventures head Amy Wu
- Animoca Brands co-founder and Executive Chairman Yat Siu
ApeCoin
ApeCoin aims to go beyond use in Metaverse games and applications.
It is also a governance token that allows holders to vote on proposals affecting the APE protocol.
Holders are considered part of the ApeCoin DAO.
The Decentralized Autonomous Community is an online group brought together by a common purpose, with affiliation represented by token ownership.
The Bloomberg report says Yuga Labs has not been accused of wrongdoings and may not face charges in the investigation.
Yuga Labs wrote a statement that read:
“It’s well known that policymakers and regulators have sought to learn more about the novel world of Web3.”
“We hoped to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem,” they continued.
“As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way.”
Reference:
ApeCoin sinks 10% after report of SEC probe into Bored Ape Creator Yuga Labs
