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Dolce & Gabbana hit with lawsuit over alleged 97% losses on NFT Metaverse Outfit

The lawsuit underscores the growing risk and unpredictability of the NFT market, as well as the legal challenges that can arise from digital assets.

Date: 2024-05-17 Author: Łukasz Michałek
Dolce & Gabbana hit with lawsuit over alleged 97% losses on NFT Metaverse Outfit

On Thursday, a customer sued Dolce & Gabbana USA, claiming that the NFTs he purchased lost 97% in value due to the company’s failed delivery.

Bloomberg reported Friday that the Italian fashion house sold NFTs on Ethereum, promising “a set of digital, physical and experiential benefits.” It reportedly told consumers that purchasing DGFamily NFT would unlock access to various digital rewards, physical products and exclusive events.

The lawsuit further alleges that Dolce & Gabbana failed to deliver NFT bonds and promised benefits on time. The digital sets, which arrived 20 days late, “could only be used on the Metaverse platform, where there were almost no users.”

Even after the delayed arrival, token holders allegedly had to wait another 11 days before they could use them. The complaint reveals that Dolce & Gabbana did not obtain prior approval from the Metaverse platform.

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“Their standard operating procedure is to promise products that failed to deliver, before abandoning the project and the community they promised to support.” – the complaint stated.

Plaintiff Luke Brown claims he lost $5,800 on the NFTs he purchased. Brown said he is suing on behalf of other people who bought digital assets in this NFT project. His lawsuit also involves the NFT UNXD market, making him a party to the legal proceedings.

NFT market growth slows in 2024

The NFT market has shown signs of growth so far in 2024, with estimates showing a 41% increase in market value compared to 2023. However, this is a significant slowdown compared to the rapid growth in previous years.

Some high-profile sales, such as the CryptoPunk 3100, brought in $16 million in March . But the overall trend indicates a decline in the value of many NFTs.

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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