Did Sotheby's REALLY Fake Bored Ape NFT Values? Investors Speak Out!

Recently, Sotheby's, a leading global art broker, came under legal fire for purportedly collaborating with blockchain company, Yuga Labs, to manipulate the value of Bored Ape Yacht Club NFTs in a 2021 auction. An anonymous group of NFT investors who initially targeted prominent figures like Steph Curry and Madonna in December 2022 has now expanded their lawsuit, drawing attention to the evolving debate: Is art primarily an investment or a form of creative expression?

The lawsuit alleges that Yuga Labs financially influenced Sotheby's to present NFTs as appealing to mainstream audiences. Sean Masson, from the representing law firm, emphasized that many saw these NFTs as lucrative investments, swayed by Sotheby's stature in the art world. "Sotheby’s auction for these NFTs was perceived by many as an endorsement," Masson stated, suggesting investors felt this signaled a promising investment.

However, the crux of the argument hinges on whether Sotheby's has an obligation to only auction art that promises appreciation in value. Sotheby's denies such claims, with Derek Parsons, VP of communications, terming the allegations as "baseless." Notably, Michael Bouhanna, the company’s digital art co-head, had only vaguely mentioned a rising NFT interest among "conventional art buyers."

Interestingly, even as the global private art market nears a whopping $580 billion valuation, its regulatory oversight remains scant. Post-acquisition, the average value of Bored Ape NFTs plummeted by 78% in two years. But with the inherent subjectivity in art and the complexities of legalities, it remains to be seen whether a concrete case can be built against alleged malpractices in art auctions.

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