HomeNFTDolce & Gabbana under fire: 97% losses on their metaverse NFTs

Dolce & Gabbana under fire: 97% losses on their metaverse NFTs

Dolce & Gabbana has been sued by a dissatisfied customer, who accuses the famous Italian fashion house of mishandling the delivery of his NFTs of clothing in the Metaverse, leading to a 97% loss in the value of the digital assets.

The accusation against Dolce & Gabbana’s NFTs

The complaint, filed on Thursday, alleges that the purchased NFTs did not meet the initial promises of the company. Dolce & Gabbana had in fact sold the NFTs on the Ethereum blockchain, guaranteeing customers a series of digital, physical, and experiential benefits.

However, according to the plaintiff, Luke Brown, these benefits were delivered with a significant delay and in an incomplete manner. 

Digital clothes were made available 20 days after the expected date and could only be used on a platform with very few users. But it doesn’t end here, even after delivery, the owners of NFT had to wait another 11 days before being able to use them, due to the platform’s lack of approval.

Details about the NFT platform UNXD

The legal case also involves the NFT marketplace UNXD, making it an integral part of the dispute. UNXD is a renowned platform in the world of luxury NFTs, as it has collaborated with various high fashion brands to bring their collections into the digital world. 

This stands out for its attention to detail and for offering exclusive experiences dedicated to its users, making the current situation even more surprising.

The history of Dolce & Gabbana’s NFT collections

Dolce & Gabbana is not new to the world of NFTs. 

Their first collection, called “Genesis Collection,” was launched in 2021 on UNXD, as mentioned, and marked a historic moment for digital fashion.

This exclusive collection included nine unique pieces, both physical and digital, that combined Italian haute couture with technological innovation. The pieces included physical garments accompanied by digital versions, jewelry, and other luxury items. 

The data confirms that the “Genesis Collection” was sold for about 1,885 ETH, equivalent to almost 6 million dollars at the time, consolidating Dolce & Gabbana’s position as pioneers in the fusion of fashion and blockchain technology.

The NFT market

The NFT market has seen a significant growth in 2024, with a 41% increase in market value compared to 2023. However, this growth still represents a slowdown compared to previous years, years in which the market experienced a real explosion. We remember some high-profile sales, such as CryptoPunk 3100 which reached 16 million dollars, a figure that reminds us how NFTs can reach astronomical figures in the right market conditions. 

Conclusions

The case against Dolce & Gabbana raises important questions about the responsibility and reliability of “traditional” companies in the world of NFTs.

If, on one hand, blockchain technology offers new opportunities for the fashion industry and beyond, on the other hand it is essential that major brands keep their promises and ensure that digital products are delivered in a timely manner. 

Surely this event will serve as a warning for the future, especially for the major high fashion houses that are considering launching digital products in the Metaverse, and it is hoped that it will not negatively impact the trust of consumers who are trying to invest in this emerging sector.

We will wait and see how the legal situation will evolve and what impact it will have on the reputation of Dolce & Gabbana and the UNXD platform. 

Martina Canzani
Martina Canzani
Graduated in Law at the University of Milan. After completing her academic studies, she became interested in the world of blockchain, finding it a powerful tool for redemption. Her passion then turned into a job, and now she invests in early-stage projects in decentralised finance and DAO and writes articles on all the news concerning the crypto world.
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