The Failed Launch of CryptoZoo
Influencer and YouTuber Logan Paul publicly apologized for the failed launch of his cryptocurrency-based game, CryptoZoo. This development came after accusations of misleading investors from an investigative journalist.
Despite boasting an impressive following of 28 million subscribers on YouTube, Paul’s investment project failed to take off, as reported by several media. CryptoZoo, marketed as an autonomous digital ecosystem that allowed players to purchase, trade, and sell digital animals on blockchain technology, was launched during the height of the Crypto and NFT boom in August 2021.
Paul’s statement indicates that the game is unavailable, and Paul deleted his previous description on the website. As 2022 progressed, a decline in the value of cryptocurrencies and NFTs led to sharp declines in interest from investors and consumers.
In the face of this market reality, the much-hyped CryptoZoo project failed to materialize, with no playable features or updates being released. That, in turn, led to an investigation by a popular YouTube cryptocurrency scam investigator known as Coffeezilla.
The investigator published a damning three-part report, calling the project a “scam” and interviewing several investors claiming to have lost hundreds of thousands of dollars. In response, Logan Paul, the project’s creator, started the CryptoZoo Discord messaging server.
He took accountability and apologized for the failed launch, promising to come forward with a plan shortly. As a result of the failed launch of CryptoZoo, many investors have come forward to share their stories of significant financial losses.
One such individual, a 34-year-old American, shared with BBC that he had invested $40,000 in purchasing NFT eggs. The 34-year-old says that he purchased the eggs within the game after being convinced by Logan Paul’s promotion of the project on his podcast Impulsive.
In response to the investigation and accusations, Paul initially published a video where he attempted to shift the blame onto the individuals he had hired to run the project, calling them “conmen” and “felons.”
However, he later deleted the video and apologized to the investigator. There has yet to be an update on how Paul intends to reimburse his investors or relaunch the CryptoZoo project. The events surrounding CryptoZoo have added to the recent string of controversies that have plagued the cryptocurrency world.
NFT Scams
Cryptocurrency and non-fungible token (NFT) scams are a growing problem in digital assets. One reason is the relative lack of regulation in the space, making it easy for scammers to take advantage of unsuspecting investors.
Additionally, the complexity of the technology and the speed at which the market is evolving can make it difficult for people to understand the risks they are taking fully. Another common scam in cryptocurrency is the “exit scam.”
This scam is where a fraudster will create a fake cryptocurrency or ICO (initial coin offering) and then disappear with funds leaving investors stranded. In addition, Ponzi schemes, which involve using funds from new clients to pay off earlier investors, are also a common scam in cryptocurrency.
Another scam becoming increasingly prevalent is the “rug pull” in NFTs. Rug pull happens when an NFT creator, the smart contract creator and owner, mints NFTs and sells them at a high value, then disappears with the fund and with no way of buying back the token.
Disclaimer: NFTs and Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors (namely Business Voices content) and the views expressed in these types of posts do not reflect the views of this website. Please read our full disclaimer here.
