NFTs meet traditional law; example case with a $500k Pepe the Frog NFT.

NFT seller disclosed the existence of 99 other identical NFTs, but promised no more would be sold. Buyer pays $500k. Seller sells 46 of the remaining NFTs. Buyer brings a lawsuit for $500k claiming that the sale of the additional NFTs damaged the value of the original one.

Seems like a breech of contract (or similar, not sure of the right legal term). But also raises an interesting question about the nature of NFTs. The first NFT is still the first NFT. It is easy to provide provenance. The others are clearly copies. The existence of a copy of an artwork does not lower its value.

On the other hand, the copies in this case were signed by the “artist.” I assume the court will only rule on the contract, but it will be interesting if they delve into the question of actual harm suffered.