NFTs
Dolce & Gabbana Hits Lawsuit Over Metaverse Clothing NFTs
Last updated: May 17, 2024 01:09 EDT | 1 minute reading
A customer sued Dolce & Gabbana USA on Thursday, claiming the NFTs they purchased lost 97% in value due to the company’s botched delivery.
Bloomberg reported Friday that the Italian brand sold the NFTs on Ethereum, promising “a series of digital, physical and experiential benefits”. Reportedly, it told consumers that purchasing their DGFamily NFTs would unlock access to various digital rewards, physical products, and exclusive events.
The lawsuit further alleges that Dolce & Gabbana failed to deliver the NFTs and promised benefits on time. The digital costumes, which arrived 20 days late, “could only be used on a metaverse platform with almost no users.”
Dolce & Gabbana Allegedly Scammed NFT Buyers With Unwearable Digital Fashion
Even after the delayed arrival, token holders would have waited another 11 days before being able to use them. According to the complaint, Dolce & Gabbana had not obtained prior approval of the metaverse platform.
“Their standard operating procedure has been to promise products they fail to deliver, before abandoning a project and community they promised to support,” the complaint said.
Luke Brown, the plaintiff, claims he lost $5,800 on the NFTs he purchased. Brown said he is suing on behalf of other people who purchased digital assets from this NFT project. His process also targets the NFT market UNXDmaking him a party to the lawsuit.
NFT market growth slows in 2024
The NFT market has shown signs of growth so far in 2024. Estimates suggest a 41% increase in market value compared to 2023. However, this is a significant slowdown compared to the explosive growth of previous years.
Some high profile sales such as CryptoPunk 3100 raised $16 million in March. But the general trend points to a decline in the value of many NFTs.