On Thursday, a consumer initiated legal action against Dolce & Gabbana USA, asserting that the NFTs they acquired suffered a staggering 97% depreciation in worth due to mishandled delivery by the company. As per Bloomberg’s report on Friday, the renowned Italian fashion brand conducted the sale of these NFTs on the Ethereum blockchain, pledging a range of digital, tangible, and experiential advantages. Prospective buyers were enticed with promises of accessing diverse digital perks, physical merchandise, and exclusive events through the purchase of DGFamily NFTs.
According to the lawsuit, Dolce & Gabbana fell short in delivering the NFTs and associated perks within the specified timeframe. Furthermore, the digital ensembles, which were delayed by 20 days, were only functional within a metaverse environment with a sparse user base.
Dolce & Gabbana Allegedly Misled NFT Buyers with Unusable Digital Fashion
Following the delayed arrival, token holders purportedly endured an additional 11-day waiting period before gaining access to their acquisitions. As per the complaint, Dolce & Gabbana neglected to obtain prior approval from the metaverse platform.
“Their habitual practice has been to make commitments they fail to fulfill, subsequently abandoning both a venture and the community they pledged to support,” the complaint stated.
Luke Brown, the plaintiff, asserts a loss of $5,800 incurred from the NFTs he procured. Brown aims to represent others who invested in digital assets from this NFT initiative. Furthermore, his legal action extends to NFT marketplace UNXD, implicating it as a party in the lawsuit.
NFT Market Growth Slows in 2024
In 2024, the NFT market has demonstrated notable growth, with projections indicating a 41% surge in marketplace value compared to the previous year, 2023. Nevertheless, this expansion represents a substantial deceleration when juxtaposed with the explosive growth witnessed in preceding years.
While certain high-profile transactions, such as the sale of CryptoPunk 3100 for $16 million in March, have garnered attention, the overarching trajectory suggests a decline in value for numerous NFTs.
