Logan Paul, the American influencer followed by millions on the web, is being sued for fraud and scamming on his NFT project, CryptoZoo. He is accused of having committed a "rug pull" or to have left with the money of the project without giving any news to investors since the launch in 2021.
Mis à jour le 02/03/2023 à 16:35
Celebrities, rappers, artists or even some web influencers all turned to cryptocurrencies when they started to become popular with the general public. Logan Paul and his brother Jake also wanted to join the crypto sphere and also started promoting different cryptocurrency projects.
Unfortunately, these efforts were marred by allegations of questionable promotion, particularly with respect to Logan’s NFT project, CryptoZoo. This project failed causing significant losses for the investors who participated in it.
Logan Paul entered the NFT field as a collector initially, he reportedly spent over $2 million on NFT which led him to the creation of CryptoZoo. Logan claimed to have invested $1,000,000 of his funds to hire the best engineers and artists for his project.
CryptoZoo was an NFT project designed to allow users to collect and breed exotic animals independently. It used the Ethereum blockchain to allow $ZOO owners to easily trade and gain value over time.
The initial launch of CryptoZoo on September 3, 2021 was a great success, with 10,000 “basic eggs” selling out within minutes. The project began to raise suspicions when the creative team started to experience difficulties in terms of response time and query resolution, as the money started to flow…
The scam allegations then began to gain momentum when YouTubers Coffeezilla highlighted Logan Paul’s questionable activities in his NFT project, prompting strong reactions from the crypto community.
Coffeezilla accused Logan Paul of misleading users by presenting the game as a way to earn money, when it turned out to be a play-to-earn scam. In response, Logan Paul denied all allegations of scamming and claimed that he made a mistake by hiring criminals to work on his NFT project.
NFT holders should be able to have exclusive access to a blockchain game, airdrops, staking possibilities, etc.
To date, the CryptoZoo team and Logan Paul have provided nothing despite the sales phase held in 2021 and left with the cash. What we call in the crypto community, a rug pull.
What is a rug pull?
A rug pull is when a crypto project is launched and then abandoned with all the investors’ money.
The in-depth investigation into Logan Paul and his CryptoZoo project reveals that the American influencer’s true intentions were not to deliver a working blockchain game but to use his influence to walk away with the funds.
Despite Logan Paul’s denials, the situation finally turned against him, and he admitted his wrongdoings. He announced a plan to revive CryptoZoo, in which he wants to reimburse NFT holders for their initial investment with 1,000 Ether (ETH) and resume the development of the game.
Unfortunately this story is not isolated, other Youtubers and celebrities are under scrutiny for promoting crypto projects that ended up causing problems. Before investing in a cryptocurrency project, it’s important to thoroughly research the project’s team and ambitions before making a decision.
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Léa is part of the InvestX team which supports members in their training. She is also a crypto enthusiast who follows the market closely. For the InvestX.fr site, she writes articles to help readers decipher the news and what happens day after day in the world of blockchains.
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