Logan Paul announces he will buy back NFTs from his failed CryptoZoo project

Logan Paul announces he will buy back NFTs from his failed CryptoZoo project

Logan Paul has announced a $2.3 million buyback program to repay participants in his defunct NFT-based game CryptoZoo.

The game, which Paul launched in 2021, allowed users to trade digital assets called CryptoZoos. In a statement, Paul said he was “incredibly proud” of the game and its community, but that he decided to shut it down due to “market conditions.”

He apologized to users who lost money in the game and said he was “committed to making this right.”

On Thursday, Paul shared details of the buybacks in an X post. The game would allow players to purchase base egg non-fungible tokens (NFTs), or unique digital assets.

Eggs would hatch into base animal NFTs, which could then be bred into hybrid animal NFTs. Players would be able to earn $ZOO tokens, the in-game cryptocurrency that could be used to buy more NFTs or cashed out, by hatching eggs.

Only base eggs and base animals are eligible for the buyback program. Each eligible NFT can be exchanged for 0.1 Ethereum, which is a popular cryptocurrency.

The CryptoZoo project was met with criticism after participants said the game did not work. Paul and his associates were named in a class-action lawsuit in February 2023. The lawsuit alleges that CryptoZoo is a “fraudulent venture.”

Defendants promoted CryptoZoo Inc.’s products using Mr. Paul’s online platforms to consumers unfamiliar with digital currency products, leading to tens of thousands of people purchasing said products,” the lawsuit said.

“Unbeknownst to the customers, the game did not work or never existed, and Defendants manipulated the digital currency market for Zoo Tokens to their advantage.

However, in order to participate in the buyback program, you must waive your right to sue Mr. Paul over CryptoZoo.

Paul is one of numerous public figures being scrutinized for their promotion of NFTs and cryptocurrency.

This has come under fire in the past for its volatile financial values. Celebrities like Cristiano Ronaldo and Kim Kardashian have been sued in the past for promoting various NFT and cryptocurrency projects.

When asked for comment, Paul’s legal representatives referred NBC News to his statement on X.com, where he defended his involvement in the NFT and cryptocurrency space.

Paul, the creator of the much anticipated video game, expressed his disappointment on Thursday that the game would not be released as planned. In a blog post, Paul cited regulatory issues as the reason for the delay.

“This buy-back is a way for me to make whole those who intended to play CryptoZoo,” Paul wrote on X. 

Tom Kherkher, the attorney representing the plaintiffs in the class action against Paul and CryptoZoo, has denounced the buyback program as a “non-starter” for CryptoZoo victims in an email statement.

While the buy back offers a limited reimbursement for ‘base eggs and animal NFTs,’ participation in the buy-back requires participants to waive any legal recourse against Mr. Paul.

Our data suggests that $ZOO token was chiefly responsible for the vast majority of financial harm. By waiving any legal recourse, participants are essentially agreeing to absolve Mr. Paul of any wrongdoing.

In a social media post, Paul alleged that “CryptoZoo was derailed by bad actors” and that they “betrayed our team while internally sabotaging the game.” On Thursday, he submitted an answer to the class action requesting the case be dismissed.

He simultaneously filed a cross-claim against Eduardo Ibanez and Jake Greenbaum, who helped him with the game, alleging they defrauded him.

Leave a Comment