CryptoZoo was a project launched by YouTube star Logan Paul in 2021, which claimed to be a game where users could hatch and breed hybrid animals as nonfungible tokens (NFTs). Paul promoted the project to his millions of followers, saying it was “a really fun game that makes you money” and “probably even more relatable and universal than Pokemon”.
However, the project turned out to be a disappointment for many investors, who bought NFTs and ZOO tokens in hopes of seeing the game come to life. The game never materialized, and the value of the tokens plummeted to almost zero. Many investors felt scammed and misled by Paul and his team, who allegedly made false promises and did not deliver on their commitments.
How did Logan Paul respond to the backlash?
In January 2023, Paul released a video on his podcast Impaulsive, where he admitted that the project was a failure and that he was “super minimal” involved in it. He announced a “three-step plan” to make things right, which included:
- Burning all of his and his manager’s ZOO tokens, so that they could not profit from them.
- Committing $1.8 million to refund the investors who did not want to wait for the game to be developed.
- Hiring a new team to work on the game and make it a reality.
However, six months later, none of these steps had been fulfilled, according to YouTube investigator Coffeezilla, who exposed the project as a scam. Paul had not burned his tokens, nor refunded any investors, nor communicated with them since January. He also faced a class-action lawsuit from CryptoZoo buyers, who accused him of fraud, breach of contract, and negligence, among other claims.
What is Logan Paul’s latest update on CryptoZoo?
In September 2023, nine months after committing to refund $1.8M to those affected by his CryptoZoo project, Logan Paul provided a new update, indicating a nearing resolution. He posted on X (formerly Twitter) that he was “personally committing” more than $2 million to buy back the NFTs from the investors, as long as they did not sue him. He also said that he was still working on the game, and that he hoped to launch it by the end of the year.
Paul’s offer was met with mixed reactions from the CryptoZoo community. Some investors welcomed the opportunity to get their money back, while others doubted his sincerity and demanded more transparency and accountability. Some also questioned the legality and ethics of his conditional refund, which seemed to be an attempt to avoid the lawsuit and the consequences of his actions.
What are the implications of CryptoZoo for the NFT industry?
CryptoZoo is not the only NFT project that has faced controversy and criticism in the past year. The NFT industry has been plagued by scams, hacks, plagiarism, and environmental concerns, as well as legal and regulatory challenges. The CryptoZoo case highlights the risks and uncertainties involved in investing in NFTs, especially when they are backed by celebrities and influencers who may not have the expertise or the responsibility to deliver on their promises.
However, the NFT industry also has a lot of potential and innovation, as it offers new ways of creating and owning digital assets, as well as new forms of entertainment, art, and culture. The CryptoZoo case also shows the power and influence of the NFT community, which can hold the creators accountable and demand justice and fairness. The NFT industry is still young and evolving, and it will need more trust, transparency, and regulation to ensure its growth and sustainability.
