- A man paid more than $500K in an auction for an NFT image of Pepe the Frog showing its butt.
- Only one NFT image auctioned, 500 cards issued, 400 burned, and 99 to remain in the PegzDAO.
- Later on, PegzDAO distributed 46 of those 99 remaining NFT images for free.
Matt Furie, the creator of Pepe the Frog, decided to hold an NFT auction last year. Specifically, he planned to sell an image of the delicate internet meme cartoon frog bathing in a pool, with its buttcrack peeping over. Furie established a Decentralized Autonomous Organisation (DAO) called PegzDAO.
On October 8, 2021, Furie, his company Chain/Saw, and PegzDAO carried out the auction of one NFT portraying the image of Pepe the Frog showing its butt while bathing. Evidently, he stated that he would mint 99 more NFTs of the same image. Furthermore, he said that he will keep the NFTs in the DAO’s custody.
According to the report of Web3 Is Going Just Great, a guy named Halston Thayer spent 150 ETH. This equals to $537,084 at the time of purchase. Not long after his bizarre purchase, PegzDAO distributed for free the exact same image of 46 of those other 99 NFTS. In contrast, Thayer paid half a million dollars.
On March 12, 2021, Thayer decided to file a lawsuit, indicating that the additional free 46 identical NFTs released “significantly devalu[ed] Plaintiff’s Pepe NFT to less than $US30,000”.
The suit introduced with:
“This action arises from Defendants’ unlawful, unfair, and fraudulent business practices, which includes their unfair, deceptive, untrue, and misleading advertising and wrongful actions with respect to an auction for a particular nonfungible token (“NFT”) that led Plaintiff and others to grossly overbid on the NFT.
The document continued, accusing Furie of various accusations. In detail, these include fraudulent inducement, intentional and negligent misrepresentation, to name a few.
Now, Thayer is aiming to receive compensation for his original purchase of the NFT image. In addition, he is demanding payment for punitive damages and attorney’s fees.
Recommended News :
Crypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.