CryptoZoo Begins $2.3M Buyback: Logan Paul Sues Co-Founders

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After a year of promises to refund the CryptoZoo community on Discord and a thorough investigation by one of the best blockchain detectives, Coffeezilla, the controversial YouTuber Logan Paul took to X to announce a buyback program for his ill-fated blockchain game. The once-ambitious title was never released, even though the developers promised a comprehensive gameplay experience powered by non-fungible tokens (NFTs) of different traits and rarity.

Double Trouble for CryptoZoo Co-Founders

In his tweet, Logan Paul also stated that he’s contributing $2.3 million towards the buyback initiative, which involves Base Eggs and Base Animals NFTs. The YouTuber expressed disappointment that the CryptoZoo game won’t see the light of day, starting legal action against two co-founders.

Available only on Google Drive, the content of this lawsuit tackles Jake Greenbaum and Eduardo Ibanez. Paul alleges that the co-founding pair ran away with the funds that were supposed to be used to develop the game and launch CryptoZoo’s alpha version on-chain.

Here’s How the Egg Buyback Works

To get a refund, disgruntled CryptoZoo investors must fill out an application on the official website. The claim form consists of multiple steps: allocating the unique reference number of the purchased NFT, reading through the terms and conditions, and completing a know-your-customer (KYC) procedure.

Once the application is submitted and approved, eligible holders will receive 0.10 ETH, which converts to $225 at the time of writing. Logan Paul mentioned that the application form will stay open until February 8, 2024. Upon approval, the Egg NFT holders are advised not to move their NFTs out of the wallet until they have received their refund.

Paul noted that some NFTs are not included in the CryptoZoo buyback program. These include hybrid NFTs, which were fused from different animals to create an unconventional pair, such as a lion with a kitten’s face. These pairs have been meant to unlock in-game abilities and privileges that would be difficult to achieve with a regular type NFT.

However, some traders have raised concerns about the legal implications of applying for a buyback.

According to the terms and conditions of CryptoZoo’s Egg NFT buyback program, investors who use this offer would have to waive all legal claims against Logan Paul.

On the Flipside

The cryptocurrency associated with the CryptoZoo project has fallen over 99.9% from its all-time high (ATH) set at $25.74 two years ago. 

Indeed, the ZOO Crypto World (ZOO) token is now worth just $0.000462 and got sliced further by 32% after Logan Paul’s X announcement.

Despite the Google Drive link, the lawsuit tackling co-founders Eduardo Ibanez and Jake Greenbaum doesn’t appear on any official media channels at the time of writing.

Why This Matters

Dissatisfied NFT investors are looking to break even after failing to launch the game. This case sets a precedent for other investors exposed to rugpulls during the NFT boom.

Source : DailyCoin by Tadas Klimasevskis / Jan 6, 2024

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