Bored Ape NFT investors are suing because their apes aren’t worth much
I hate to do this to you, but I have to remind you of something seared into my brain: those hideous, expensive monkey drawings.
These tiny little creatures have popped back into the news cycle because, in a shocking turn of events, the guys who bought the NFTs are not happy with their purchases. A group of investors are suing a whole lot of people over an auction and promotion of the Bored Ape Yacht Club NFTs after the prices dropped, CNN reported.
According to CNN, the plaintiffs are suing 30 defendants, including Sotheby’s Holdings Inc and some of the celebrities that endorsed the NFTS because the auction house “misleadingly promoted” the collectibles.
“Sotheby’s representations that the undisclosed buyer was a ‘traditional’ collector had misleadingly created the impression that the market for BAYC NFTs had crossed over to a mainstream audience,” the lawsuit claimed, according to ArsTechnica. The plaintiffs argued that the investors bought the NFTs “with a reasonable expectation of profit from owning them.” They say they did not see this profit.
Currently, the cheapest Bored Ape NFT you can buy on OpenSea will cost you roughly $ 43,000. At the peak of the NFT hype cycle, one of these NFTs would cost you well into the six figures.
ArsTechnica reported that the investors first sued Bored Ape creator Yuga Labs, four company executives, and a bunch of celebrities, including Paris Hilton, Gwyneth Paltrow, Kevin Hart, Snoop Dogg, Serena Williams, Madonna, Jimmy Fallon, Steph Curry, and Justin Bieber in December 2022. They added Sotheby’s as a defendant on August 4.
Sotheby’s told CNN in a statement that “the allegations in this suit are baseless, and Sotheby’s is prepared to vigorously defend itself.” A spokesperson for Yuga Labs gave the news outlets a similar statement denying wrongdoing.
The investors want more than $ 5 million in damages.