Authored By – Ashima
NFTs have recently exploded in popularity, and lawsuits over them have begun to hit U.S. courts. NFTs are digital assets known as non-fungible tokens.
Detroit-based StockX is being sued by Nike for selling unauthorized images of Nike shoes, marking the latest lawsuit over digital assets i.e NFTs. The complaint said StockX has sold over 500 Nike-branded NFTs.
StockX is a popular platform for reselling sneakers, handbags, and other goods, and was valued at more than $3.8 billion last year.
Nike alleges that StockX last month began selling unauthorized NFTs of its sneakers, telling buyers they would be able to redeem the tokens for physical versions of the shoes “in the near future.”
The lawsuit complaints about the NFTs’ “inflated prices and murky terms of purchase and ownership” and buyers’ doubts about the legitimacy of StockX’s model have hurt Nike’s business reputation.
Nike said it will release “a number of virtual products” later this month in conjunction with the digital art studio RTFKT, which it acquired in December.