Social media influencer Logan Paul has initiated a refund program for investors of his CryptoZoo nonfungible token (NFT) project. This decision aims to compensate those who invested in the game’s Base Eggs and Base Animals, marking a significant turn in the project’s trajectory since its inception in August 2021.
CryptoZoo’s Initial Promise
CryptoZoo, described as a play-to-earn game, encouraged participants to buy, sell, breed, and trade digital animals, each represented as an NFT. The game’s core concept revolved around purchasing “Base Eggs,” which players could then hatch into “Base Animals.” These animals were designed to breed and generate daily ZOO tokens. Despite the substantial activity on trading platforms like OpenSea, where the project’s NFTs exchanged hands for over 3,009 Ether (approximately $6.7 million), the game unfortunately never progressed to its official launch.
Details of the Refund Initiative
In the newly announced refund plan, Paul has committed a personal fund of $2.3 million to support the scheme. Eligible investors, those who bought the aforementioned Base Eggs and Animals, can expect to receive 0.1 Ether (ETH) for each NFT, amounting to about $224 at the current market value. To qualify for this refund, investors must keep their NFTs in their current wallets and, importantly, agree to waive any legal claims against Paul and associated parties.
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Exclusions and Concerns
The refund program expressly excludes holders of “Hybrid animal NFTs” and CryptoZoo (ZOO) tokens. Currently, the value of ZOO tokens has seen a drastic decline, standing at 99.99% below its peak. This exclusion has sparked discussion and concern among a section of the investor community.