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Dolce & Gabbana Faces Lawsuit Over Metaverse NFT Outfits

A lawsuit has been filed against Dolce & Gabbana USA by a disgruntled customer who alleges a substantial loss in the value of NFTs purchased due to delivery mishaps.


Dolce & Gabbana Faces Lawsuit Over Metaverse NFT Outfits

According to Bloomberg, the renowned Italian fashion house distributed NFTs on the Ethereum blockchain, offering a range of digital, physical, and experiential benefits. These NFTs, branded as DGFamily, were marketed with promises of unlocking exclusive rewards, products, and events.


The lawsuit contends that Dolce & Gabbana failed to deliver the NFTs and associated benefits in a timely manner, with the digital assets arriving 20 days behind schedule. Moreover, the complaint highlights that the NFTs were only functional within a metaverse platform with minimal user engagement, and the fashion house had not obtained prior approval from the platform.


Citing a pattern of unfulfilled promises and disengagement from projects and communities, the plaintiff, Luke Brown, claims a personal loss of $5,800 on the purchased NFTs. Brown seeks to represent other buyers affected by this NFT project and has included the NFT marketplace UNXD as a defendant in the legal action.


Despite the NFT market's overall growth in 2024, with a projected 41% increase in marketplace value compared to the previous year, there are indications of a slowdown in the once-explosive growth trajectory. While some high-profile sales, such as CryptoPunk 3100, have commanded significant sums, many NFTs are experiencing a decline in value, reflecting a shift in market dynamics.

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