Rumors of a Rugpull
In January of 2023, YouTuber CoffeeZilla released a series of videos exposing Logan Paul’s CryptoZoo project. The project required customers to purchase egg NFTs in order to participate in the game. However, social media accounts associated with the platform went silent and Paul avoided discussing the project. This led to a class-action lawsuit filed by purchasers of CryptoZoo NFTs and buyers of the cryptocurrency $ZOO. The lawsuit alleged that Paul and other celebrities involved in the promotion manipulated the market and deceived customers.
NFT Holders to Be Refunded, $ZOO Holders Left Out
Recently, Logan Paul announced that he would refund those who bought his NFTs as long as they waived their right to sue him. He set aside $2.3 million for this purpose. However, the refund was only available to NFT holders who had not used them to create hybrid animals in the game. Holders of the $ZOO token would not receive compensation. Paul claimed that he had not profited from the project and blamed two members of his team for attempting to rugpull it. He has taken legal action against them.
Hot Take: The Demise of CryptoZoo
Logan Paul has confirmed that the CryptoZoo game will never be fully released and is effectively dead. He cited “regulatory hurdles” as the reason for its demise, although other factors likely contributed to its failure. This serves as a cautionary tale about celebrity-endorsed projects in the crypto space and highlights the risks associated with investing in such ventures.
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