Court Rules Bored Ape Yacht Club NFTs Are Not Securities
- A California judge dismissed a class-action lawsuit against Yuga Labs, ruling that Bored Ape Yacht Club NFTs are not securities.
- Judge Fernando M. Olguin found that Bored Ape NFTs do not meet the criteria of the test used to determine the security status of financial transactions.
- The decision noted that buyers purchased Bored Apes on third-party marketplaces like OpenSea and Coinbase, not controlled by the NFT issuer.
- Yuga Labs’ collection of creator royalties suggested a separation of financial interests between Yuga and NFT holders.
- The floor price for Bored Ape NFTs is down to $37,337, a decline of about 90% from its all-time high in April.
The ruling marks a significant legal victory for Yuga Labs, as it differentiates Bored Ape NFTs from other collections previously deemed securities by courts. The decision highlights the importance of third-party marketplace transactions and creator royalties in determining security status.
Despite this legal win, the value of Bored Ape NFTs remains significantly lower than its peak levels, reflecting broader market trends rather than legal outcomes.(Source)
