A class-action lawsuit involving NBA legend Shaquille O’Neal, often known as Shaq, and his endorsement of the Astrals non-fungible token (NFT) project has settled for $11 million.
The Case and Its Resolution
According to a story from The Block, O’Neal consented to a settlement to have the lawsuit dismissed after a year of court processes. Ten thousand 3D NFT avatars created on the Solana (SOL) blockchain were the subject of the case. A decentralised autonomous organisation (DAO) that promoted creative projects included these NFTs.
Claims Made Against Shaq
According to the plaintiffs, O’Neal encouraged investments in the Astrals NFT project by using his celebrity position. They also asserted that he gave up on the project after the cryptocurrency market FTX crashed, severely devaluing the NFTs.
O’Neal was also charged in the case with intentionally marketing unregistered securities while knowing about possible regulatory problems. He allegedly used this campaign as part of his plan to expand his bitcoin business.
The Court’s ruling regarding the claims
The allegation that O’Neal served as a “control person” on the project was rejected in August by the Miami Division of the U.S. District Court for the Southern District of Florida. But at a crucial juncture in the lawsuit, the court maintained the claim that Astrals offered unregistered securities.
Effect on the Prices of Astrals NFT
According to Magic Eden, a prominent NFT marketplace, the floor price of Astrals NFTs increased by 115% on the previous day after the settlement news, reaching 0.153 SOL, or $36.39 at current market values.
More General Patterns in the NFT Market
The Astrals NFT price increase was accompanied by a more general upswing in the cryptocurrency market. According to data from CryptoSlam, the NFT market also showed an 85% increase in weekly sales volume ending November 17. This increase reflects growing optimism fuelled by gains in digital assets such as Bitcoin (BTC).
