Are BAYC NFT Securites? ApeCoin Prices Tanks After SEC launches Probe

The US Securities and Exchange Commission (SEC) has decided to tighten its command over the digital assets industry. The Commission has alleged certain firms, tokens, and exchanges of the wrongdoings. However, this time famous NFTs have landed under its radar.

Will BAYC will be charged by SEC?

As per reports, the US watchdog has alleged that Bored Ape Yacht Club (BAYC) parent company Yuga Labs have violated the law with the sales of its digital assets. The commission will be inspecting whether Yuga lab’s certain NFTs are similar to stocks and should comply with the same disclosure rules.

Meanwhile, the commission is also inspecting the distribution of the recently launched Apecoin distribution. The token was issued to the holders of the BAYC and NFTs.

Since the news broke out, Bored Ape Yacht Club NFTs floor price and Apecoin price have registered a slight drop. However, data suggests that both digital assets haven’t performed well over the past few months.

BAYC NFTs floor price is down by around 3% in the last 24 hours. However, it has dropped by 27% in the last 90 days. The floor price stands at 73 Ethereum.

However, the Apecoin prices have dropped by around 8% in the last 24 hours. APE is trading at an average price of $4.73, at the press time. Its price has dropped by 14% over the past 30 days. Meanwhile, Its 24 hour trading volume has jumped by 130% to stand at $340 million.

Does the watchdog want to prove something?

The report mentions that Yuga hasn’t been accused of any violation yet and a probe might not lead to SEC suing the firm. This might be another attempt by Gary Gensler, SEC Chair to ensure the crypto should follow the rules carefully.

On multiple occasions, the SEC chair has asserted that most of the crypto assets would land under regulations. Recently, Gensler took the spotlight by chagrin the American fashion celebrity Kim Kardashian for promoting digital asset security.