Matt Furie, the Pepe the Frog inventor, is being sued for $500,000 by an NFT collector who alleges the PegzDAO ripped him off by giving away duplicates of his NFT for free.
Last year, Matt Furie, the inventor of Pepe The Frog, entered the crypto realm by releasing the image below as an exclusive NFT.
However, the father of contemporary memes may have just set fire to the entire digital collectible business six months later.
Backstory on Rare Pepe
In October 2021, Furie established PegzDAO as a DAO to auction off an unique Pepe NFT dubbed "FEELSGOODMAN Series 20, Card 50."
The DAO issued an additional 99 NFTs to be retained in their treasury in addition to the one NFT that was to be auctioned.
For context, Furie had another NFT collection, the Sad Frogs District, removed from OpenSea due to copyright violations.
This demonstrated that Pepe's intellectual property rights were to be recognized by the NFT community, as well as confirming the legitimacy of the PegzDAO collection.
After Furie's DMCA notice against plagiarized content, collectors could have been forgiven for trusting the PegzDAO collection.
The auction drew a lot of attention, and NFT collector Halston Thayer came out on top with a winning bid of 150 ETH worth about $537,084. By any measure, it's a lot of money, but we've seen NFTs go for a lot more.
Given that this was a genuine Matt Furie Pepe, the price isn't outrageous. However, the plot takes a peculiar turn after that.
PegzDAO is facing a lawsuit
Thayer is now suing PegzDAO for more than $500,000, alleging that the company intentionally misled the community and was directly responsible for the NFT's value dropping.
After Thayer's winning bid was accepted, the DAO distributed 46 additional copies of the NFT to wallets.
Is Thayer's case strong? Let's take a look at what occurred. "500 cards issued, 400 burned, 99 will remain in the PegzDAO, and ONE is being auctioned here," according to the NFT's FEELSGOODMAN Series 20, Card 50 ad.
The winning bid of 150 ETH is also displayed on the page, which is still active. The plaintiff cites the following tweet as proof that the Pepe NFT would be really unique in the lawsuit.