Investors sue NFT game Mafagafo for failing to sell rare items

An investor in a Brazilian NFT game has sued the company that created the game after it failed to sell digital goods. According to the plaintiff, his investment in the game was designed to benefit from the features promised by the developers, which was not possible.

In recent months, NFT gaming has attracted a lot of people into the cryptocurrency industry. That’s because, the game’s methodology promises profit while playing, giving money to gamers who believe in various projects.

after Clearly promising start, several major games are starting to show that their mechanics are unsustainable. The biggest one, Axie Infinity, is no longer able to keep players as profitable as they were at the beginning, even as the game continues to run.

Others, such as CryptoCars, have left investors with huge losses, in addition to no longer working. Even so, it’s unusual to see investors bring these projects to justice, as this is a nascent industry and developers are often unknown.

Brazilian NFT game investor sues the company that made the game, claims it can’t sell rare items

One of the games created by the Brazilians is Mafagafo, which is inspired by the Fall Guys game. With technology developed by Sciensa and financial support from the game Bossa Nova Investimentos developed by MafaTech Corp. By 2021, it is expected to shine in the NFT game market.

MafaTech is incorporated and headquartered in the British Virgin Islands, but its social media marketing attracts a lot of attention.

One of the influencers who heavily promoted the game was Davi Braga, the son of João Kepler Braga, a partner at Bossa Nova, which was eventually cited in a lawsuit in Minas Gerais.

Mafagafo’s profile shares Davi Braga’s views on investing in NFT games. Instagram

An investor claims to hold 94 gold mufflerwhich should be repurchased by the game 300 BUSD each. Since every 1 BUSD is 1 to 1 with US dollars, these rare in-game items are worth $28,200.00.

As a result, the Brazilian’s total investment in the game exceeds 130,000 reais. He sued MafaTech, Bossa Nova and Sciensa for his claim that he could not sell his NFTs to MafaTech.

Brazilian NFT game Mafagafo promises to buy back rare items with 300 BUSD in-game tokens
Brazilian NFT game Mafagafo promises to buy back rare items with an in-game token of 300 BUSD. Instagram. Accessed on May 19, 2022.

Companies resort to unlocking accounts

Entering the Minas Gerais state court, investors were able to block the value of the gaming-related companies, which were blocked until the resources were finalized.

Bossa Nova appealed against TJMG to dismiss the case, but the case remains in court. In court, the start-up investor who contributed to MafaTech claimed that the blocking was arbitrary, and she was surprised that the account was blocked.

Sciensa claims it is not the legitimate party cited in the lawsuit because it does not work with Mafagafo’s marketing, only in the development of the game’s technology. The company’s clients include XP Investimentos, Porto Seguro, Magazine Luiza, Gerdau, Submarino, CVC and more.

Invest in NFT Games

Since NFT games are not just entertainment, they are also investments, it is important that investors in these projects understand what is promised in addition to the technology they are based on itself.

Live Coins Bossa Nova Investimentos was contacted for comment on the case and Sciensa, the company Mafagafo investors sued in court. This space remains open for display. (Update: After publication, both companies have commented, and their full description is below).

What does the scientific community say?

On Friday (20th), after the article was published, Sciensa sent Live Coins its position on the case.

Sao Paulo, May 20, 2022. Regarding the news published on the Livecoins website that links Sciensa to the lawsuit brought by the investors of the game MAFAGAFO NFT, we reiterate the company’s role as a digital transformation pioneer in creating games, only in the technical development of CoreEngine — – The backend of the game.

It is worth mentioning that the work Sciensa does is limited to providing technical services, not the business model of its clients.

Sciensa has extensive experience in its market and has always gone to great lengths to educate the public and establish truth and transparency.we can use Clarify any doubts. Sincerely, science.

What does Bossa Nova Investimentos have to say about its alleged investment in MafaTech?

On Friday, Bossa Nova Investimentos also sought Live Coins Send your position through your attorney, Vinicius Barros Rezende, which can be read in full below.

Notably, Bossa Nova denies being an investor in MafaTech, the company that produces Mafagafo, although the investment was approved by the Brazilian daily in a February 2022 conversation with one of its leaders.Via Mafagafo’s Twitter, the company made a AMA with Davi Bragawhich enhances Bossa Nova’s interest in NFT gaming companies with exponential investment potential.

Live Coins Strengthen its commitment to the veracity of its disclosures and continue to follow the case.

Taking into account the articles published on the livecoins.com.br website and reproduced in the profiles of their social networks, I use now as a lawyer for Bossa Nova Investimentos e Administração S/A to clearly clarify the facts that have been distorted (or not calculated correctly ) in this matter.

First of all, it should be noted that Bossa Nova is not an investor in the company Mafatech (the sole head of the game), a fact that has been proven in numerous documents in court proceedings. Indeed, Bossa Nova is interested in investing because this is a game that has never been seen before and has a high potential to expand globally.

Like all 1000+ startups that Bossa Nova invests in, Mafatech is in the due diligence phase, which is the process of gathering information about the company to invest in (startup), ranging from accounting to equity, legal issues, process, activities, future prospects and many other established standards. The due diligence process has been paralyzed and no investment decisions have been made so far.

In fact, Bossa Nova is not an investor in Mafatech Corporation, therefore, the statements in the news article are untrue and need to be corrected.

Even if Bossa Nova is an investor in Mafatech, this does not make it liable for any business practices or any debts of the startup, as expressly stated in the Legal Framework for Startups – Supplementary Law No. 182/2021.

On the other hand, specifically as far as the lawsuit is concerned, Bossa Nova has filed a defense and an appropriate appeal (pending judgment). There is no clear decision to blame on Bossa Nova.

I have also recorded that the plaintiff, who did not bring it into the proceedings, spontaneously appeared on the record, taking ownership of the game and exonerating Bossa Nova in a clear act of good faith, because, I repeat, this is not a partner, manager of Mafatech , administrator or investor.

Finally, I clarify that the above-mentioned litigation is still in its early stages, and Bossa Nova believes, based on all available evidence, to exclude it from the proceedings and dismiss the plaintiff’s request.

What does MafaTech say?

On Monday (23rd), game development company MafaTech announced to Live Coins its position on the case.

MAFATECH, through its press office, informs and clarifies about the news published on Livecoins that, in view of the allegations contained in the request against the company, appropriate legal steps are being taken to restore the truth of the facts.

MAFATECH also clarified that it has been serving the entire MAFAGAFO community and is continuously striving to achieve the success of the most innovative projects in its events and entertainment sector with the launch of the new version, Ignite Tournament, on May 25.

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