A group of YouTubers known as Nelk Boys is under scrutiny due to a lawsuit alleging their NFT project failed to deliver promised perks, despite raising $23 million.
Lawsuit Filed Against Nelk Boys in California
On January 29, Trenton Smith filed a complaint in California federal court against Kyle Forgeard, John Shahidi, and their entertainment firms, accusing them of being 'snake-oil salesmen masquerading as entrepreneurs.'
Promised Perks and Unmet Expectations
According to the suit, Nelk Boys promised several perks to holders of their Metacard NFT, including discounts on their branded merchandise, access to an event with Snoop Dogg, and a $250,000 giveaway to NFT holders. Yet, holders have reportedly seen little to none of the promised benefits.
Financial Impact and Market Reaction
Metacard NFTs were sold for $2,300 each, but allegedly 'held no intrinsic value' aside from the claimed perks. The NFT trend is slowing, and the current value of Metacard on OpenSea is 0.034 ETH. The lawsuit calls for Nelk Boys to pay damages, equitable relief, restitution, and a return of the proceeds from NFT sales.
The lawsuit against Nelk Boys highlights challenges in the NFT market, where many projects have failed to meet expectations. It serves as a reminder to investors to thoroughly research projects before investing.
