Fashion brand Lacoste appears to have quietly pulled the plug on its non-fungible token (NFT) project, UNDW3.
Last week, the company closed its Web3 website, Discord channel, and X (Twitter) profile, without offering any public explanation. This has raised concerns among the project’s participants and the broader NFT community.
A user on X, who goes by the pseudonym “Le crêpiste,” called for an investigation into what they referred to as the “Soft Rug by @Lacoste.”
Just a month ago, Lacoste was actively engaging with its community on Discord, indicating future plans for its Web3 initiative. The brand wrote that it would be launching “a new experience centered around creation and play” by the end of the year, with this initiative being part of their broader membership program.
However, Lacoste also announced that no further operations would take place regarding the UNDW3 NFT card and The Emerge collection, signaling a shift in direction.
In response to the project’s sudden closure, another X user, “@Fv20000,” criticized Lacoste for not acknowledging what they viewed as a failure. This user claimed to have invested 12 ETH into the project and said Lacoste was hiding behind legal terms, referencing ongoing discussions with the brand’s legal department.
Lacoste responded by citing sections of their general conditions, reminding users of the volatility of NFTs. The company emphasized its right to modify the terms of the program at any time due to legislative changes, market developments, or internal organizational reasons. Lacoste concluded that no compensation or reimbursement would be provided.
Despite the backlash, as of now, there has been no indication of legal action from authorities, and it remains unclear whether any investigations will be initiated.
Lacoste initially entered the NFT market in 2022 with the launch of a collection of 11,212 NFTs priced at 0.08 ETH each, which was equivalent to about $93.30 at the time.
The following year, the brand expanded its UNDW3 experience, allowing NFT holders to participate in various activities and earn exclusive rewards, including branded merchandise and digital twins.
The project was marketed as a way for users to engage with Lacoste on a new, interactive level.
However, the closure of the project could be linked to the growing legal uncertainties surrounding NFTs. Recently, OpenSea received a Wells notice from the SEC, which considers NFTs to be securities.
This legal scrutiny has also impacted other companies in the space. Dapper Labs settled a lawsuit over its NBA Top Shot NFTs for $4 million, while DraftKings shut down its Reignmakers NFT game and marketplace due to concerns about NFTs being treated as unregistered securities.
