US SEC Puts Yuga Labs under Microscope, ApeCoin may be in Trouble


From the latest updates from the US SEC, the securities regulator seems to be shifting its attention to another cryptocurrency platform.

It is being reported that this time, the US Securities and Exchange Commission is planning to go against a platform based on the non-fungible token (NFT) industry.

The US SEC Focuses on Yuga Labs

The US SEC now seems to be deciding if the NFTs should be considered securities. The regulator is now running the NFT industry through the checks to see if it is somehow in breach of any federal laws.

The reason behind US SEC’s sudden interest to explore the NFT sector is because of Yuga Labs. It is a major conglomerate that has been expanding its network throughout the world of NFTs.

With the developments of the protocol since the beginning of 2022, it seems to have caught the attention of the securities regulator in the US.

It has been claimed that the US SEC is now looking into the distributions carried out by Yuga Labs.

According to the market observers, it is ApeCoin, a native token issued by Yuga Labs, which would be the center of attention. Just like XRP, the US SEC may try and establish the status of ApeCoin to decide its fate.

Yuga Labs and its Significance in the NFT-Verse

Over the course of time, the NFT sector has formed its own universe. There was a time when NFT existed as a sub-product of the cryptocurrency industry. Now, it has its own segments and industries it targets.

The NFT industry has gained huge traction, especially in the artwork and digital collectibles sector. One of the major platforms that have been targeting almost every segment within the NFT-verse is Yuga Labs.

The firm has been spreading its network throughout the NFT-verse by launching newer products and services.

The platform has garnered so much attention that it has managed to bring on board some of the largest crypto investors and advisors.

However, things are about to get very difficult for Yuga Labs from this point onward.

SEC Goes After Yuga Labs

The latest news is now suggesting that the US SEC is taking too much interest in knowing more about NFTs. The regulator is aiming to know its nature to establish its classification.

While the US SEC does that, it is specifically looking into Yuga Labs and its role in the NFT industry.

Yuga Labs is responsible for launching NFT artworks in the NFT market. The platform is also running an entire APE ecosystem where the ApeCoin (APE) is used as the native token.

If the US SEC files a lawsuit against Yuga Labs, it would eventually lead to the token’s demise.

Ever since the reports started coming in, the trading price of APE has declined by 1.92%. At the time of writing, APE’s trading price is worth $3.03, and if the US SEC takes the matter further, its price would keep plunging.