Matt Furie, the artist behind Pepe The Frog, could ignite the entire NFT token market when he gets involved in a lawsuit over the $500,000 rug pull suspicion.
NFT token investor lost $500,000
In October 2021, Furie founded PegzDAO DAO, which published the special Pepe NFT titled “FEELSGOODMAN Series 20, Card 50” by auction. In addition to the 1 NFT to be auctioned, the DAO has minted 99 more NFTs and kept them in the vault. Previously, Furie had another NFT collection, Sad Frogs District, but was taken from OpenSea due to copyright infringement.
The auction attracted a lot of attention and collector Halston Thayer won the bid with 150 ETH (approximately $537,084). The DAO released another 46 NFT copies to the wallet after Thayer’s offer was accepted. And then, six months later, Thayer is now suing PegzDAO, alleging that PegzDAO deliberately misled the public and that they were directly responsible for the massive drop in NFT’s value.
Will Thayer win the case?
Take a look at the advertisement for NFT FEELSGOODMAN Series 20, Card 50: “500 cards awarded, 400 cards burned, 99 will stay in PegzDAO and ONE is up for auction here”. The homepage also shows the winning bid of 150 ETH. In the lawsuit, the plaintiff cites the following tweet as proof that Pepe NFT is truly unique. But collector “aurepa” noted that every member of the DAO will receive a copy of the NFT. On October 4, 2021, PegzDAO tweeted a list of DAO members with over 30 names. DAO members will then put about 30 more cards on the market.
Following the auction, 46 copies of the NFT were released for free a few weeks after Thayer won the bid. PegzDAO has completed a nefarious rug pull operation by increasing the current supply by 4600%, diluting the value of the once unique NFT. When OpenSea transactions were investigated, it was discovered that wallets offering “free” copies of NFT belonged to members of the DAO (list posted on Twitter). Further research, the wording in the original ads only read “ONE is being auctioned here”. Statements can be misleading, but this should not be taken to mean that other copies owned by the DAO can be found later. They were deliberately misleading by treating the NFT as unique and leaving 99 copies to be distributed to DAO members through the treasury. Maybe Thayer regretted that he accidentally jumped into an exaggerated commercial case and didn’t read the promotional materials carefully.
cryptocoin.com As we reported, Baby Musk Coin (BABYMUSK) developers, inspired by Tesla CEO Elon Musk, returned to the market with a new project after a rug pull operation.
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