11/10/2024 NFT holders sue art gallery, alleging it broke metaverse promise

A group of NFT holders sued the creators, claiming they took no significant steps to fulfill promised perks and had no knowledge of blockchain.

NFT holders sue art gallery, alleging it broke metaverse promise

A group of NFT holders sued the creators, claiming they took no significant steps to fulfill promised perks and had no knowledge of blockchain.

A group of 36 non-fungible token (NFT) holders have sued an art gallery and artist who made their NFTs, claiming they failed to follow through on a metaverse-based private club and other promised perks.

In an Oct. 9 complaint filed in a New York federal court, the group claimed Eden Gallery and artist Gal Yosef’s project “was a ‘rug pull’”scam.

TheNFTcollection, the Meta Eagle Club, sold 12,000 unique humanlike eagles and collected $13 million between February 2022 through November 2023.

But the group alleged nothing “substantial” was ever done to “actually build the Meta Eagle Club in any real way,” despite updates from the team behind the project claiming otherwise.

Tokens, Metaverse

Source:Meta Eagle Club- GalyVerse

The lawsuit also alleged that the people building the project had no “experience or expertise related to blockchain and smart contract development and engineering, and in fact, did not have any experience related to software development or engineering at all.”

NFT holders were promised entry into a Meta Eagle Club and a range of perks.

The Meta Eagle Club’sroadmapadvertised that NFT holders could enter raffles to win entry to Eden Gallery events, hot air balloon rides, private jets, helicopters, exclusive collectible artworks and more.

The group claimed only “a handful of tickets to the experiences promoted extensively in their statements” were provided, along with two Galyverse events and 11 physical artworks signed by Gal Yosef.

The complaint said on Jan. 12, 2023, a successful vote was held on Eden Gallery’s Discord to reallocate the budget of the remaining items from the Roadmap into “alternative utilities,” including keeping a marketplace active. The shift in priorities was blamed on the market downturn.

The group claimed the gallery and Yosef pledged to create more art to populate an online world called the Galyverse, which they alleged would see members’ investments in the club “increase, and they would receive dividend-like digital assets as long as they were members.”

Tokens, Metaverse

Perks promised for tokenholders in the Meta Eagle Club. Source: Galyverse

They claimed this motivated investors to buy the Eagle NFTs based on “materially false information and suffer losses because the Meta Eagle Club NFTs had no value,” as the promises “associated with creating their value” were never fully fulfilled.

“As a result, Plaintiffs paid substantially more for the NFTs than they were actually worth,” the group claimed.

Eden Gallery and artist Yosef are accused of common law fraud, unjust enrichment and violating New York General Business Law.

The group is seeking damages to be decided by the court, injunctive relief and attorney’s fees.

Eden Gallery and Yosef didn’t immediately respond to a request for comment.

This isn’t the first lawsuit to be launched amid NFT buyer remorse.

In a Sept. 19 suit,two OpenSea users proposed a class actionagainst the NFT marketplace, claiming it sold unregistered securities contracts after OpenSea received aWells noticefrom the Securities and Exchange Commission.

In May, adisgruntled customer filed a class-action lawsuitagainst Italian fashion brand Dolce & Gabbana and digital assets platform UNXD for alleged delays in delivering NFT products that caused the assets to lose most of their value.

The broader NFT market is still struggling toregain ground and the highsof previous years, with an Aug. 20reportby NFT Evening analysts suggesting 96% of about 5,000 NFTcollections they examined were deadin 2024.

Arts

https://cointelegraph.com/news/nft-holders-sue-art-gallery-broken-metaverse-promise

Interesting NFTs
The River Plate Machine
Digital illustration for the cover of These Football Times magazine in its issue dedicated to the Argentine football team "Club Atlético River Plate". Original from 2020. For this cover I have created a complex machine that links all the generations and legends of the club with its great shield and emblem crowning the center as the heart of the fantasy machinery. Full of details and ornaments this is a highly detailed work. An authentic trip to the history of River through the imagination and the colors of the club. The most significant titles of the club are also included, such as the Libertadores Cup, the famous Intercontinental and the new Super Liga and the Argentine Cup in its newest cup design. If you see a hen, don't be surprised, it is the nickname that its fans give themselves, and they like it. ----- https://javierarres.com/about.html
Jon Snow
Hi-ya! I'm Jon Snow. I'm a professional Mad Scientist and I love apple pie. Some people say I'm the Jon Snow of the group. I hope you like kitten around as much as I do!
Various people climbing the mountain, from the series Thirty-six Views of Mt. Fuji
Katsushika Hokusai (1760-1849) Various people climbing the mountain, from the series Thirty-six Views of Mt. Fuji 1833 - Japan
Really Remote Working Part 2
The second imagined space in the series. Created during the lockdown period whilst being confined to the same place every day, this piece is part of a series of imaginary places that I dreamed of being able to work from.
Alex in Wonderland
A figure, Alex, stands mostly naked in the midst of a physical and psychological maelstrom. He is clad only in nostalgic 80’s era socks, on a tenuous island between active waters and a variety of shark denizens. Sharks on the right side of the image are all beached, including a shark with a quartz crystal snout, an orange shark wrapped in a life buoy, and a shark further in the distance wearing an 80’s style shirt with the number “88”. On the left side is the largest shark, wearing bright glossy red lipstick and brandishing prominent teeth with braces. She is cordoned off from the figure by a roped float divider, and within her thought bubble is a warning symbol. Behind the figure, hovering in the air, are Grey aliens emerging from the distance, out of a series of elliptical UFO shaped interdimensional membranes. The Greys take on the visual form of spermazoa ostensibly impregnating the interdimensional thresholds. As is typical, these Greys inhabit a zone just behind the unconscious topology of Alex’s dissociative mind. Though Alex’s bottom half is representative, his top half mutates into a psychological cornucopia. In a manner akin to “Auto-Erotic Sphinx”, a predecessor work, the figure has self suctioned—an act of sensual infatuation, enjoyment, and exploration. Upward exists the figure’s primary conscious eye, adorned with a revolutionary beret emblazoned with a Bitcoin badge. The figure’s summit features the nose of a fighter jet facing off against video game Bullet Bills, one of whom is marked by a communist North Korean star. A cropped section of a UFO observes the contest. Alex’s mind branches both left and right. To the left is more singular embodied consciousness, manifesting two eyes and a Ganesh trunk grasping crayons. The right branch dissociates upward diagonally, emerging into an array of eyes, faces, teeth, tail, a unicorn horn, and much more—all of which participate in expressing his unconscious being; a democracy of psychic factions representing thought impressions and associations. All illumination and darkness– fernal, infernal, high consciousness and corporeal underbelly–reside in this realm. In the distance are relatively languid, light clouds, and against the firmament hovers a colossal distant eye peering over the scene and far beyond. This painting possesses underlying genetic traits with previous works such as “Auto-Erotic Sphinx with Toys”, “Dionysus”, and “Fuku-Shiva”. The work serves also as a nod to an earlier period of art inspiration during late teens and early twenties— born out of the nakedness, vulnerability, curiosity, and wonder inherent to coming of age and all subsequent psychedelic revelation.