Shaquille O’Neal has settled a class-action lawsuit regarding Astrals non-fungible tokens (NFTs) through an $11 million agreement. The ex-NBA player was accused of endorsing NFTs which resulted in financial harm to investors.
Legal Battle Over Astrals NFTs
Legal action against O’Neal started when he endorsed the Astrals NFT collection, an online project consisting of 10,000 pieces created by artist Damien Guimoneau. The NFTs provided users with a digital environment to engage with others, including O’Neal himself. Investors stated that they were attracted to the project due to the celebrity endorsements from O’Neal.
In September 2023, the plaintiffs claimed that O’Neal attempted to separate himself from the project following the decline in value of the NFTs. On May 23, O’Neal received the lawsuit at Miami’s Kaseya Center. In August, a federal judge determined that the plaintiffs had provided enough evidence to demonstrate O’Neal’s involvement in the sale of the NFTs.
Settlement Brings Closure
Following a year of legal proceedings, O’Neal decided to accept the $11 million settlement in return for the case being dismissed. This signifies the conclusion of one of the multiple legal issues associated with his NFT and crypto advertising.
NFT Market Rebounds
Agreement of O’Neal aligns with a resurgence in the NFTs market. In October, sales volumes reached $356 million, marking an 18% growth compared to September. Sales on a weekly basis increased by 94%, with top blockchains such as Ethereum, Bitcoin, and Solana fueling the growth.
Although there have been previous controversies, the NFT market is indicating a resurgence in interest. Looking ahead, investors are reminded by examples such as O’Neal’s of the dangers associated with celebrity-supported cryptocurrencies.
This settlement is a reminder that endorsements should be supported by thorough research.
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