Yuga Labs acquisition of Meebits NFT IP reopen talks of market manipulation

There are concerns astir marketplace manipulation successful the caller Yuga Labs acquisition of Meebits and CryptoPunk IP. This interest stems from an reflection that betwixt March 5 and March 11, respective addresses purchased a full of 159 Meebits NFTs.

Since its acquisition by Yuga Labs connected March 11, the floor price has much than doubled to implicit 6 ETH which is astir $15,000.

According to NFTEthics connected Twitter, astir of the addresses that purchased the NFTs during this play belonged to insiders.

1/ We haven’t been truthful progressive precocious arsenic things are starting to get rather predictable successful the NFT space. We foresaw the BAYC acquisition of Larva Labs’ main IP (and we look guardant to Andreessen Horowitz’s further instructions and engagement :-)) https://t.co/XiAelDoBac

— NFT Ethics (@NFTethics) March 14, 2022

It pointed retired that the Head of Consumer Product Marketing astatine Twitter, Justin Taylor, and erstwhile Head of Marketing of TikTok Nick Tran bought Meebits NFTs earlier the acquisition. These were radical who were apt alert of Yuga Labs’ plans.

It besides stated that different insiders mightiness person created newer wallets to acquisition Meebits NFTs.

While immoderate radical wonderment if these Ethereum addresses beryllium to NFT investors who made the close determination astatine an opportune time, others judge they were acting connected insider information.

But it’s hard to find this fixed the marketplace speculation astir Yuga Labs acquisition days earlier it happened. The anonymity of the crypto abstraction besides makes it intolerable to cognize those truly down the purchases.

NFT abstraction and marketplace manipulation allegations

This contented brings backmost speculations astir marketplace manipulation, an contented that has plagued the NFT space. The volatility of the crypto marketplace besides extends to the NFT space, which means speculators person to trust connected their hunch and disposable nationalist accusation to marque profits.

None of the parties progressive successful the deal, Yuga Labs and Larva Labs, has made immoderate comments astir the allegations.

The deficiency of regulations for the manufacture had made it hard to place marketplace manipulation. Even erstwhile uncovered, it’s adjacent intolerable to prosecute it.

This means that it’s up to NFT platforms to bash thing astir it. Last year, OpenSea banned its employees from trading NFTs listed connected the level aft 1 worker bought a listed NFT earlier it became nationalist and sold it for a nett aboriginal on.

Beyond insider information, different prevalent signifier of marketplace manipulation is wash trading. This involves inflating the terms of NFT by trading it betwixt aggregate wallets, each controlled by the aforesaid person. These issues person led to much calls for regulations successful the NFT space.