Art gallery says NFT holders can’t sue due to market drop

-

In a twist that indeed sounds like something out of a courtroom drama serie, Eden Gallery is pushing back against a class-action lawsuit from a group of NFT holders.

The gallery argues that any losses these collectors might be feeling are just a result of the market decline, not any wrongdoing on their part.

Buyers’ remorse?

Eden Gallery got a lawsuit involves 36 individuals who bought Meta Eagle Club NFTs and are alleging fraud and unjust enrichment, and they claim the gallery and artist Gal Yosef’s project was a rug pull.

The Meta Eagle Club sold 12,000 unique NFTs and collected $13 million between February 2022 and November 2023.

Eden Gallery now filed a motion in a New York federal court on January 7, claiming that the general decline in NFT prices doesn’t equate to fraud or misrepresentation.

We aren’t lawyers, but they’re probably right.

“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.”

Buy high, sell low?

Eden Gallery pointed out that when the Meta Eagle Club NFTs launched in early 2022, the NFT market was booming.

But on the other hand, as we all know, what goes up must come down, and the current floor price for these NFTs has plummeted to about 0.0051 ETH, around $17, down from 0.6 ETH, or about $1,800 at launch.

The plaintiffs argue they overpaid for their NFTs because of misleading claims by the gallery and are seeking damages ranging from $1,224 to $70,219 each.

Eden Gallery countered that none of these claims meet the legal threshold of $75,000 for jurisdiction and that combining claims isn’t allowed.

NFT market still struggling

There was an uptick in NFT sales lately, likely thanks to a crypto market rally, but it’s worth noting that the sector is still down about 98% from its peak sales volumes in early 2022.

So while some might be cashing in on the latest trends, many others are left holding onto depreciating assets.

Have you read it yet? Arbitrum teams up with Lotte to supercharge metaverse gaming


Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.

LATEST POSTS

No crypto for Brazil pension funds

Brazil just dropped a bombshell on the crypto industry. The National Monetary Council, the CMN has officially barred closed pension funds from investing in Bitcoin...

Tether and the $735 million power play

Tether just made a move that's gonna shake the crypto world. They dropped a cool $735 million on Bitcoin, buying 8,888 BTC and catapulting themselves...

Japan will re-classify cryptocurrencies from payments to financial products?

Japan is about to shake things up in the crypto industry. The Financial Services Agency is planning to classify cryptocurrencies as financial products, not just...

GUNZ, the newest gaming blockchain

Let me tell you something, there’s a new player in town, and it’s shaking up the gaming world. Meet GUNZ, a Layer 1 blockchain platform...

Most Popular

Guest posts