A statement has been made by an art gallery that a collective lawsuit filed by a group of Non-Fungible Token (NFT) owners should be discarded. The reason being, the gallery maintains it is not accountable for any perceived losses in the value of NFTs due to a broader market slump.
In my professional analysis, I contend that the general downturn observed in the Non-Fungible Token (NFT) market, as evidenced by our recent filing in a New York federal court on January 7th, does not automatically imply fraudulent activities or misrepresentations associated with our own collection. Rather, it could be attributed to broader market fluctuations and trends.
“Plaintiffs may have buyers’ remorse (even though the NFTs were a digital art product rather than an investment product), but their losses, if any, are due to market forces.”
36 people who bought the “Meta Eagle Club” Non-Fungible Tokens (NFTs) filed a lawsuit against Eden Gallery in October, claiming fraud, unfair profit, and breach of New York’s General Business Law.
The team asserted that the Eden Gallery and artist Gal Yosef’s initiative was an instance of a “bait-and-switch” or “rugpull,” referring to a situation where investors are deceived about a project’s true intentions, often resulting in financial loss. Over the period from February 2022 to November 2023, the Meta Eagle Club NFT collection successfully sold 12,000 distinctive humanlike eagle figures and raked in approximately $13 million in revenue.
As a researcher, I observed an intriguing trend in the digital art world. When the Meta Eagle Club NFTs were initially launched in early 2022, they garnered immense popularity, reflecting the widespread appeal of Non-Fungible Tokens (NFTs) as an asset class at that time. However, the overall interest in the NFT market began to wane later on.
Currently, the starting price for a Meta Eagle Club NFT is 0.0051 Ether (ETH), which is approximately $17 USD. This is a significant drop from its initial launch price of 0.6 ETH, or around $1,800 USD, as recorded on OpenSea in February 2022.
A group of students assert that they were incorrectly charged for their NFT purchases because of what they believe are false statements made by the gallery. They are now requesting financial reimbursement, with potential damages ranging from $1,224 to $70,219 per individual claimant.
Yet, Eden Gallery contends that no single claim brought forth by the plaintiff surpasses the jurisdictional limit of $75,000, and combining the claims is not allowed.
Although there’s been an increase in NFT sales due to the surge in the crypto market, it’s important to note that these sales are still 98% lower than their peak values from early 2022 when measured by US dollar volumes, as reported by CryptoSlam, a leading analytics portal for the industry.
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2025-01-08 09:25