Dolce & Gabbana is facing a class action lawsuit. This is a case regarding brand NFTs.
Dolce & Gabbana and the NFT scandal
A disgruntled investor has filed a class action lawsuit against Italian fashion brand Dolce & Gabbana and digital asset platform UNXD. Reason? Delay regarding the issuance of NFTs, which resulted in the loss of as much as 97% of the token's value.
According to Bloomberg, it is Luke Brown who paid $6,000 for the Dolce & Gabbana “DGFamily NFT”. The token was supposed to be an investment hit. This is what the investor assumed. Except that the NFT hit the market with a delay of over a week. During this time, its market value decreased by $5,800. So Brown bought something worth a few thousand dollars, but what he got was practically worthless.
Interestingly, the irate investor filed a class-action lawsuit on behalf of all of the company's customers who purchased NFTs. He accuses Dolce & Gabbana and UNXD of failing to keep the promise made at the time of the transaction – purchasing the token.
At this time, it is unclear how many customers may have been affected by the alleged delay and how much of the group feels aggrieved.
Is this the end of the NFT era?
The problem with NFTs losing value isn't unique to this particular case. In general, the NFT trend is probably over for good. It may turn out that these tokens will be worth as much as many of their ICO-era counterparts. So nothing.
What's the problem? NFTs are an interesting idea. However, it was slightly ridiculed by the creators themselves. These tokens would make great digital certificates of ownership or equivalents to membership cards of exclusive clubs. However, the general narrative around this market was that the game was all about graphics with funny monkeys or teddy bears. The intriguing potential of technology faded into the background.
The latter was of great importance, because it was probably the reason why serious investors did not invest in NFTs. Of course, celebrities entered the market, but this was not enough to create a stable market for new technology.
