Dolce & Gabbana and UNXD Face Class Action Suit Over Delayed NFT Deliveries
Summary:
An unhappy customer, Luke Brown, has launched a class action lawsuit against Dolce & Gabbana and UNXD, a digital asset platform, alleging delays in NFT deliveries that caused 97% depreciation in their value. The complaint suggests the delayed arrival of the “DGFamily NFTs” and additional "virtual outfits" severely impacted their worth. The suit argues the companies failed to meet the commitments promised at the time of the sale. This case spotlights the challenges brands face transitioning from physical to hybridized digital products.
A class action lawsuit has been initiated by an unhappy client against Italian fashion label Dolce & Gabbana and crypto asset platform UNXD. The suit arises from alleged delays in non-fungible token (NFT) deliveries that resulted in a 97% depreciation of the digital assets' worth. As per a Bloomberg report, the client, known as Luke Brown, spent $6,000 for Dolce & Gabbana's “DGFamily NFTs”, an offering that merges digital and physical benefits linked to the brand's vast ecosystem. The supposedly tardy NFT delivery led to a severe devaluation of $5,800. Moreover, the delivery of additional "outfits" for the NFTs, designed for showcase in the virtual realm, witnessed an extra hold-up of 11 days following the initial arrival. Brown has instigated a class action legal proceeding on behalf of all those who acquired the NFTs, asserting that Dolce & Gabbana and UNXD did not fulfil the commitments agreed at the sales point. The report maintains that the delays came about after Dolce & Gabbana couldn't secure the UNXD NFT platform's approval for the additional assets. The volume of customers impacted by these alleged hold-ups is still uncertain. This situation underscores the ongoing issues businesses are facing as they navigate the shift from physical merchandise to a digital combination. The market dynamics ahead for a physical item such as high-end fashion are different from those of a digital asset, regularly bearing no correlation. Making matters more complex, this particular NFT from Dolce & Gabbana was launched on the Ethereum blockchain intended for the “D&G Metaverse.” Ethereum powers the world's second-largest cryptocurrency, and in the past, Dolce & Gabbana NFTs have been bought for multi-million dollar figures, as noted by Cointelegraph. All these elements could influence the class action suit. Renowned brands like Nike and Gucci have made significant profit from NFT sales. Cointelegraph's attempts to reach Dolce & Gabbana for a comment were unfruitful.
Published At
5/17/2024 7:36:29 PM
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