Logan Paul, the well-known YouTube personality, has begun the process of buying back Non-Fungible Tokens (NFTs) from fans who incurred losses in his unsuccessful cryptocurrency game, CryptoZoo. The game was announced in 2021, with fans investing millions in game tokens, but it never materialized, leading to financial losses for many.
Paul, 28, has pledged to repurchase the tokens, under the condition that fans who accept the offer agree not to pursue legal action against him. However, it’s unlikely that the fans will recover their full investment. CryptoZoo was designed as a game where players could buy, sell, and breed virtual animals using cryptocurrency. Despite high initial interest and significant sales of NFTs and crypto coins, Paul eventually stopped discussing the project and appeared to abandon it.
The issue came to the forefront after another YouTuber, Coffeezilla, conducted an investigation into the project. Following this exposure, Paul apologized and expressed his desire to rectify the situation. A year later, he announced the start of the buy-back process, which he estimates will cost him $2.3 million (£1.8 million). He proposes to refund players 0.1 Ether per NFT purchased, equivalent to the original selling price. However, due to a 37% drop in Ether’s value since the launch, fans will incur financial losses.
In a post on X (formerly Twitter), Paul clarified that the buy-back aims to compensate those who intended to play CryptoZoo, not those who speculated on the crypto market. He emphasized that it was not meant as an investment vehicle.
The buy-back offer is available until February 8, 2024, with the condition that participants waive any legal claims against Paul and others involved in CryptoZoo. One investor, who spent $40,000 on NFTs, expressed disinterest in the refund, hoping instead that Paul would complete the project.
Paul’s involvement in the cryptocurrency coin Dink Doink, which also crashed in value, was previously criticized. He admitted to the New York Times that he regretted not disclosing his financial interest in the coin.
