As digital assets have declined in value, many consumers have said they have been scammed, particularly by purchasing products that celebrities have also purchased. A class action lawsuit was recently filed against the stars who endorsed FTX. Similar cases also exist in the area of NFTs.
BAYC, the NFTs of Discord?
Last Thursday, the Los Angeles law firm Scott+Scott filed a class action lawsuit against dozens of celebrities. The list includes the company Yuga Labs, which issues the NFTs, its founders, members of the ApeDAO oversight team, and the start-up offering crypto payment solutions, MoonPay. The complaint is directed against a total of 37 celebrities, including Snoop DoggJustin Bieber, The Weekend, Paris Hilton, etc. In fact, they are accused of illegally promoting NFT’s famous collection, Bored Ape Yacht Club (BAYC).
In which document, lawyers accuse Yuga Labs and MoonPay of secretly mobilizing celebrities to buy the collection. This, the document continues, piqued the interest of the general public who flocked to her and enhanced the value of the collection. Guy Oseary, famous artist manager, would have been approached by the founders of BAYC to mobilize celebrities for BAYC. MoonPay would have served as a platform for various payments between the parties involved in the case.
You should know that many of the celebrities named in the complaint have invested in MoonPay.
“Yuga Labs, Guy Oseary and MoonPay have developed an extensive program to leverage their network of musicians, athletes and celebrity customers and employees to promote and sell Yuga Labs products. It is a fabricated endorsement by celebrities and BAYC’s misleading NFT advertising. This celebrity endorsement prompted investors to buy loss-making assets at grossly inflated prices.”. This is essentially to be recorded in the complaint document.
Technically, the celebrities whose names appear in the complaint also suffered losses. We recently learned that BAYC #3001, which Justin Biebe bought for $1.3 million, is now only worth $69,000.
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Far from dampening my enthusiasm, an unsuccessful cryptocurrency investment in 2017 only heightened my enthusiasm. I therefore decided to study and understand the blockchain and its many uses and use my pen to share information related to this ecosystem.