While we still await the final ruling between the Security Exchange Commission (SEC) and Ripple lab with its prolonged case of $1.3 billion unregistered token sales that claim Ripple violates security tokens by selling unregistered tokens to investors, we see another fresh investigation targeting Non-Fungible Tokens (NFTs) creator Yuga labs a popular NFT community having billion dollars market capitalization in its NFT sales with its native token ApeCoin (APE) currently trading at $4.55 according to data from coinmarketcap is under SEC scrutiny, the SEC role is to oversee and protect investors ensuring which/what assets they are pumping their funds into are safe for long-term purposes to avoid the reoccurrence of Terra lab incidents.
Last week with the announcement of the SEC looking into Yuga lab NFT sales, APE token plummeted losing a significant percentage of its market cap value, which shows investors did panic sell in fear of what might come up next, regulating the crypto space and ensuring what assets should be classified as a security and none security have been kind of the complex task for the regulatory community.
Yuga lab NFT sales have surpassed over $4 billion in market capitalization which has prompt users' inequity why SEC would target a large crypto NFT firm to deter smaller communities from growing, the question here is whether SEC targeting big firms on purpose.
According to reports from decrypt, Bored Ape Yacht is currently under investigation by SEC whether NFTs sold by firm creators did violets security regulation registration, are NFTs suppose to fall under SEC watch list? experts are speculating things might go north if regulators go hard on NFT collection industries.
What are your thoughts on this topic would NFT market fall if SECs decide to fully look into NFTs market sales policy?