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Dolce & Gabbana sued for alleged 97% loss on metaverse outfit NFTs

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A customer sued Dolce & Gabbana USA on Thursday, claiming the NFTs he purchased lost 97% of their value due to the company’s botched delivery.

Dolce & Gabbana sued for alleged 97% loss on metaverse outfit NFTs

Bloomberg reported on Friday that the Italian fashion house was selling the NFTs on Ethereum, promising “a range of digital, physical and experiential benefits.” Consumers were reportedly told that purchasing the DGFamily NFTs would unlock access to various digital rewards, physical products and exclusive events.

The lawsuit also alleges that Dolce & Gabbana failed to deliver the NFTs and the promised benefits on time. The digital outfits, which arrived 20 days late, “could only be used in a metaverse platform with hardly any users.”

Dolce & Gabbana allegedly misled NFT buyers with unusable digital fashion

Even after the delayed arrival, token holders reportedly had to wait another 11 days before they could use them. According to the complaint, Dolce & Gabbana had not obtained approval from the metaverse platform in advance.

“Dolce & Gabbana’s standard procedure is to promise products they cannot deliver before abandoning a project and community they promised to support,” the complaint states.

Luke Brown, the plaintiff, claims he lost 5,800 on USD the NFTs he purchased. Brown said he is suing on behalf of others who purchased digital assets from this NFT project. His lawsuit is also against the NFT marketplace UNXD, so it is also a party to the lawsuit.

NFT market growth slows down until 2024

The NFT market has so far shown signs of growth in 2024. Estimates suggest that the market value will increase by 41% compared to 2023. However, this is a significant slowdown compared to the explosive growth of previous years.

Some high-profile sales like CryptoPunk 3100 brought in 16 millionUSD in March. However, the overall trend suggests that the value of many NFTs will decline.

Crypto exchanges with the lowest fees 2024

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.