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The Nelk Boys are accused of being “snake-oil salesmen” in a lawsuit that claims their Metacard NFT project “failed to deliver” to buyers.
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A group of YouTubers known as the Nelk Boys have been accused in a lawsuit of failing to deliver the full scope of their promises for a non-fungible token project that made $23 million.
A Jan. 29 complaint filed by Trenton Smith in a California federal court against Kyle Forgeard, John Shahidi and their various entertainment firms alleges the group was “snake-oil salesmen masquerading as entrepreneurs.”
The suit claimed they offered “a few ‘perks’” associated with owning the NFT called Metacard, “but ultimately failed to deliver any of the promised business ventures or investment opportunities.”
The perks allegedly offered by the Nelk Boys included discounts on their own branded merchandise, access to an event with rapper Snoop Dogg and a $250,000 giveaway to NFT holders.
“But ultimately Metacard holders have seen nothing of the promised return on the $23 million investment they funded,” the suit claimed.
It’s alleged the Nelk Boys sold an NFT that failed to live up to the lofty heights promised to purchasers. Source: PACER
The suit claimed that using their crypto company Metacard, also a defendant in the suit, the Nelk Boys minted 10,000 NFTs in January 2022, with the project selling out in minutes.
Each NFT sold for $2,300, but “Metacards held no intrinsic value” other than the amenities and perks to which the NFT was supposed to provide access, Smith’s suit alleged.
NFT marketplace OpenSea has the current floor price for a Metacard at 0.034 Ether (ETH), worth $111.
Smith alleged the Nelk Boys also promised holders access to exclusive content, meet-ups, discounts on merchandise, and the chance to participate in Nelk Boys projects.
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Smith is seeking damages, equitable relief restitution and disgorgement of funds generated through the NFT sales and attorney’s fees.
The Nelk Boys didn’t immediately respond to a request for comment. Information on lawyers for Nelk, Forgeard and Shahidi was not available at the time of writing.
The lawsuit follows others against firms that have launched NFT projects, including a September suit against OpenSea, with two users claiimingthe platform sold unregistered securities.
The broader NFT market is still struggling to regain ground and the highs of previous years, with a report finding that 2024 was the worst year for trading and sales volumes since 2020.
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This article first appeared at Cointelegraph.com News
