Coinspeaker
Dolce & Gabbana Named in Lawsuit over Metaverse Outfit NFTs Mismanagement Allegations
The US branch of Italian luxury fashion house Dolce & Gabbana has recently faced a lawsuit due to the mismanagement of DGFamily NFTs.
On Thursday, a customer Luke Brow, filed a lawsuit against Dolce & Gabbana USA, on behalf of others who bought digital assets from this NFT project. The plaintiff alleged that the NFTs they purchased for $6,000 lost 97% of their value due to the company’s mishandled delivery.
Notably, the brand sold the NFTs on Ethereum, promising a slate of experiential benefits. The official website states that holders would be granted “access to exclusive drops and collaborations, both digital wearables and physical products, as well as access to an exclusive slate of digital and physical Dolce&Gabbana events”.
The lawsuit claims that Dolce & Gabbana failed to deliver the NFTs and the promised benefits on time. The digital outfits, which arrived 20 days late, “could be used only in a metaverse platform with barely any users”, according to the complaint filed in Manhattan federal court.
As per the recent report by Bloomberg, even after the delayed arrival, NFT holders allegedly had to wait an additional 11 days before they could use them. Brown, who claims a loss of $5,800 on the NFTs he purchased, states that Dolce & Gabbana had not secured approval from the metaverse platform in advance.
“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 reads.
Notably, the lawsuit also includes the NFT marketplace UNXD as a party to the legal action. In February 2022, Dolce & Gabbana partnered with UNXD to announce the launch of DGFamily, following the successful launch of its inaugural NFT release, Collezione Genesi, featuring a bespoke, 9-piece luxury collection.
DGFamily peaked at an all-time high of 0.529 ETH on July 16, 2022, but its value began to decline as the NFT craze waned in 2023. Currently, it is trading around 0.024 ETH, marking a drop of over 95% from its peak value.
NFT Market Slowdown
The NFT market, once a vibrant hub commanding millions and attracting multiple celebrities, is now deserted. The latest data reveals that trading volumes have plummeted by a staggering 97% since 2021, while 95% of NFT projects have lost their value entirely.
This situation has not only shaken the once-booming industry to its core but also sparked widespread concern among traders and observers alike.
However, the data from NFT Ora states that the global NFT market cap surpassed $193.84 billion in January this year, signaling a ray of hope for the industry. The market has experienced signs of recovery in 2024 compared to 2023, with estimates suggesting a 41% increase in marketplace value.
Dolce & Gabbana Named in Lawsuit over Metaverse Outfit NFTs Mismanagement Allegations
