Eden Gallery Responds to Class Action Lawsuit: The NFT Market Crash is a "Common Phenomenon"!

Eden Gallery Group has submitted a motion in the federal court in New York to dismiss a class action lawsuit initiated by holders of the "Meta Eagle Club" NFTs. Eden Gallery believes that the core of this legal dispute is the overall decline of the NFT market, rather than the responsibility of the project party.

In October last year, 36 holders of the "Meta Eagle Club" NFTs filed a lawsuit against Eden Gallery, accusing it of fraud, unjust enrichment, and violation of New York business law. The project was extremely popular at the time of issuance, selling 12,000 NFTs and raising $13 million. However, with the overall cooling of the NFT market, the floor price of the "Meta Eagle Club" NFTs has dropped from 0.6 ETH at issuance to 0.0051 ETH, causing many investors to lament their losses.

Eden Gallery's Position: Market Volatility is Not Human-Controlled

Eden Gallery stated in its motion that the NFT market was unusually hot in early 2022 but subsequently cooled sharply due to changes in overall market sentiment. The project party emphasized that the price decline is a trend across the entire industry and cannot be attributed to the losses of investors based on a single project or company. Furthermore, Eden Gallery believes:

• The lawsuit amount does not meet the federal court jurisdiction requirement: the compensation amount claimed by each plaintiff ranges from $1,224 to $70,219, which does not reach the minimum threshold of $75,000.

• Opposition to the consolidation of class claims: The motion points out that the law does not support combining individual claims to meet jurisdictional amount requirements.

Plaintiffs' Demands: Recover Investment Losses

The plaintiffs claim that Eden Gallery used "false and misleading statements" in its promotions, leading them to have overly high expectations for the project's future profits. Although the current claim amount is limited, this case raises alarm bells regarding the protection of investors' rights.

The Winter of the NFT Market and the Crisis of Trust

The NFT market once thrived, but as the frenzy faded, many projects now face a crisis of trust and legal disputes. The case of Meta Eagle Club is just the tip of the iceberg, and Eden Gallery's stance may provide important reference for subsequent similar cases.

• Do you think project parties should be responsible for the price collapse of NFTs?

• How can the rights and interests of NFT investors be better protected?

Everyone is welcome to share their views in the comments section and discuss the future of the NFT market together!#NFT‬⁩