- The price of ApeCoin has fallen nearly 10% over the past 24 hours.
- The price fell sharply after a report that the SEC is investigating Bored Ape Yacht Club creator Yuga Labs.
Decrypt’s Art, Fashion, and Entertainment Hub.
The price of the Ethereum-based ApeCoin (APE) token fell sharply today following the release of a report claiming that the Securities and Exchange Commission is investigating Yuga Labs, the startup behind the popular Bored Ape Yacht Club NFT project.
ApeCoin’s price is down nearly 11% over the past 24 hours as of this writing, per data from CoinGecko, falling to a current price of $4.67 per token. The token was worth as much as $5.27 during the same span, according to the site. APE trading volume over the span has nearly doubled since the report came out.
Earlier today, Bloomberg reported that the SEC is probing Yuga Labs over securities violations via the sale of Bored Ape Yacht Club NFTs. Per the report, which cites an unnamed source, the agency is also investigating the startup over the distribution of ApeCoin, which launched in March.
Yuga Labs’ official stance is that it is not the creator of ApeCoin, apparently due to regulatory concerns. Instead, according to the official ApeCoin website, the Ape Foundation is the “steward” of the Ethereum-based token, which is designed to be used throughout the growing Bored Ape ecosystem of apps and marketplaces.
The Ape Foundation is anchored by a board made up of prominent Web3 builders, including Reddit co-founder Alexis Ohanian, FTX Ventures head Amy Wu, and Animoca Brands co-founder and Executive Chairman Yat Siu.
Beyond expanding use across metaverse games and apps, ApeCoin is also a governance token that can be used by holders to vote on proposals that impact the APE protocol. APE holders are considered part of the ApeCoin DAO, or decentralized autonomous community—an online group united by a shared focus, with membership represented via token ownership.
According to the Bloomberg report, Yuga Labs has not yet been accused of wrongdoing and may not ultimately be charged as part of the probe.
“It’s well-known that policymakers and regulators have sought to learn more about the novel world of Web3. We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem,” Yuga Labs told Bloomberg in a statement. “As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way.”