After CryptoZoo fail: Logan Paul wants to buy back NFTs from cheated investors – but there’s a catch

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The NFT project CryptoZoo was intended to be a fun way for those interested to participate in the crypto and NFT market using a digital game and be able to earn money at the same time. However, the project, which was also promoted by YouTube star Logan Paul, failed and left fans bruised. Paul now offers them a refund, but there is a catch.

• CryptoZoo project fails – millions in damages for investors
• Logan Paul launches NFT buyback program
• Not all NFTs included, no longer have the right to take legal action

The crypto game CryptoZoo was first advertised and presented to the world in 2021. It promised users the opportunity to get NFTs in a fun way and earn some money at the same time – a play-to-earn game in the crypto universe. Specifically, the NFTs to be purchased were eggs from which virtual animals hatched. These animals could, in turn, be bred with each other to create new, unique creatures, which could then be sold to purchase Zoo Tokens, a cryptocurrency designed specifically for the game. The Zoo tokens could then have been reinvested or cashed out.

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That’s the idea, which YouTube star Logan Paul also promoted vigorously. After NFTs and Zoo tokens worth several million US dollars had already been sold, Paul suddenly went quiet when it came to CryptoZoo. The end of the CryptoZoo project was the research of the YouTuber “Coffeezilla”, who showed the numerous shortcomings of the game in a video series that went online about a year ago and gave numerous users the opportunity to share their negative experiences with the game to share with the world. Because the promises the game made were not kept and the game was ultimately never released, causing the CryptoZoo NFTs that had already been sold to lose their value. Paul then apologized to investors and offered the prospect of compensation.

Buyback program established

Now it looks like the YouTube star wants to put his words into action. On his X appearance, Paul announced that he had set up a buyback program for the NFTs “Base Egg” and “Base Animal CryptoZoo”, in which those NFTs would be bought back at the previous purchase price. The claims could be submitted by February 8th.

Additionally, Paul writes that he would use $2.3 million of his own money to buy back said NFTs from those people who had planned to play CryptoZoo. He himself, like the community, was very disappointed that the project ultimately failed. Although the game was completed at the beginning of 2023, there were ultimately too many regulatory hurdles that made an actual launch impossible. The CryptoZoo project has failed once and for all.

restrictions

However, Paul also made it clear in his statement that his compensation was only intended for those users who actually had the intention of playing CryptoZoo: “The buyback is not intended to compensate those who gambled on the crypto market and lost “It is important to remember that the Zoo token was created to support the CryptoZoo game and its players; it was ‘not intended as an investment vehicle,’ as stated in the original white paper.”

Paul is also taking legal action against the two lead developers behind CryptoZoo, Eduardo Ibanz and Jake Greenbaum, who he says sabotaged the project and were involved in fraudulent activities, CryptoCoin.News reported.

As a reminder: The Zoo token was launched in 2021 with the launch of the game idea at a value of 0.000000000001 US dollars and shot to a record high of 0.000000001653 US dollars on November 21, 2021, an increase of 165,200 percent corresponds. After the project failed, the cryptocurrency fell more than 99 percent from this value.

How does the buyback program work?

CryptoZoo NFT holders are entitled to 0.1 ETH per NFT according to the buyback program. This was also the original purchase price of the NFTs in September 2021. The crux of the matter: Not all NFTs qualify for this claim. Hybrid animals and users who hold zoo tokens are excluded. Anyone who makes use of the recall also forfeits the right to take legal action against Paul and his team in this case. In addition, the monetary value of Ethereum has now decreased significantly, so NFT owners will still suffer losses, although this should not come as a complete surprise due to the high volatility of the crypto market.

It remains to be seen how many users will now take advantage of the buyback program. Although the program comes with some limitations, it could potentially help restore some investors’ lost trust in the crypto sector.

Editorial team finanzen.net



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