Steve Aoki Faces Lawsuit Over “Worthless” NFTs
Steve Aoki, a prominent DJ known for his extravagant performances, is facing a class action lawsuit regarding the promotion of non-fungible tokens (NFTs). Alongside DraftKings co-founder Matthew Kalish, Aoki is accused of endorsing NFTs from the now-defunct Metazoo without revealing they were compensated for their promotions.
Key Details of the Lawsuit
The lawsuit, spearheaded by Evan Berger, claims that Aoki and Kalish’s influence led to significant financial losses for investors. Berger and other plaintiffs state they lost tens of millions of dollars on NFTs they purchased based on the promotional content shared by these influencers.
Background on Metazoo
Metazoo Games LLC, established in 2000, initially produced a tabletop collectible card game. The company later diversified its offerings to include skateboards, apparel, and NFTs. At one point, a complete set of Metazoo Coin NFTs sold for 20 Ethereum, valued at approximately $80,000.
Influencer Accountability
Berger asserts that due to misleading promotions, he acquired 26 NFTs with the expectation they would appreciate in value. Instead, the tokens are reportedly now worthless. He emphasizes the importance of influencer accountability, stating, “There is a specific set of rules that are in place to protect consumers.”
Aoki’s Involvement with Metazoo
In 2021, Aoki became an equity partner in Metazoo. The following year, the company released a collectible card series linked to his album, HiROQUEST: Genesis. Recently, the new album HiROQUEST 3: Paragon Remixed was released, which includes a controversial remix that sparked conversation online.
Aoki’s Financial Success and Challenges
Aoki previously claimed to have earned more from NFTs than from a decade of music advancements. This lawsuit adds a layer of complexity to his business ventures, which include unique NFT promotions and personal branding efforts.
Conclusion
The growing number of class action lawsuits against influencers over misleading promotions highlights ongoing concerns within the NFT space. As the market evolves, transparency and ethical marketing practices will be crucial for consumer trust.
