The gaming organization has reportedly suffered over $5.2 million worth of losses due to failed commitments by the NFT platform.
G2 entered the partnership with Bondly back in 2021, for which the esports team received backlash from the community.
However, the Founder and CEO of G2 Carlos Rodríguez, known by internet alias as "ocelote", attempted to mitigate the situation on social media, claiming that the project with Bondly won’t be the same "cash grab" as other projects.
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It turns out that it might have been the case, with the esports team getting the other end of the stick.
Based on a report by the Washington Post, G2 Esports has taken Bondly to court for "misleading G2’s leadership" and deceiving the organization of its capabilities to submit "deliverables and payments."
The lawsuit states that G2 signed a multi-year deal with Bondly, and gave rights to its intellectual property to launch NFTs branded with the esports organization. With the agreement, Bondly had to be responsible for the sales of G2’s NFTs, and was given $3.25 million in "annual rights fees and advance guarantees."
However, G2 claims that Bondly was not able to deliver the expected NFTs, and the platform wanted to withdraw from the agreement despite the two-year term, but the esports organization refused to do so. The lawsuit reads:
"They knew they could not perform, but cunningly waited until G2 had publicly announced its partnership with Bondly to its millions of fans to reap the benefits of publicity through the highly valuable G2 brand."
Likewise, G2 Esports claim that Bondly’s management team knew beforehand that the deal will eventually fall through, waiting for the esports organization to publicly announce the partnership, and "reap the benefits of publicity." Neither party made any public announcements regarding the matter.