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What to do if NFT launch fails? Internet celebrity Logan Paul says: Guarantee refund, can't sue me

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What to do if NFT launch fails? Internet celebrity Logan Paul says: Guarantee refund, can

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Logan Paul's CryptoZoo Controversy: Refunds Offered with a Catch

Logan Paul recently took a new approach in the controversy surrounding his failed NFT project, CryptoZoo.

He offered refunds to disappointed buyers, but with a condition: accepting the refund means agreeing not to prosecute him.

CryptoZoo, the Pokémon-inspired NFT game launched in 2021, is now embroiled in accusations of fraud.

What led to the legal action against Logan Paul and the entire CryptoZoo team?

Generous Refund or Liability Waiver Strategy?

Logan Paul announced a plan to repurchase NFTs from the CryptoZoo game using over $2.3 million of his personal funds.

He stated, "I personally commit to investing over $2.3 million to buy back Base Eggs and Base Animals from everyone intending to play CryptoZoo. Like you, I am thoroughly disappointed the game didn't launch as expected."

Claimants must submit their requests by February 8th, with the refund set at 0.1 ETH per eligible NFT. However, Logan Paul requests that claimants waive any potential legal claims against him.

This move has sparked interest, with some viewing it as an attempt to evade legal consequences. Paul is currently facing a class-action lawsuit, accused of profiting from an unreleased game, and has filed a countersuit to hold the "wrongdoers" accountable.

Legal Implications and Market Manipulation Allegations

Los Angeles attorney Rob Freund suggests that this refund plan may be a strategy to reduce potential damages from lawsuits. The idea is to significantly reduce his legal risks by resolving disputes with individual members of the class and potentially negotiate a more favorable settlement.

CryptoZoo Controversy: Promises vs. Reality

When CryptoZoo was first announced in 2021, it was hailed as a fun and potentially lucrative game.

Players could collect, breed, and hatch virtual animals as NFTs, each creature holding a certain value in $ZOO tokens. However, when developers claimed they were exiting due to unpaid royalties, the game's development hit a snag, leaving players unable to breed animals or cash out.

An investigation by YouTube journalist Coffeezilla uncovered further issues, including market manipulation and unpaid wages. These revelations led to a class-action lawsuit, accusing Paul and his partners of deceiving consumers and manipulating the cryptocurrency market for personal gain.

Consequences and Future of CryptoZoo

In light of these developments, Paul admitted to losing a significant amount of money on the project and accused former partners of deceit. He also mentioned that despite investing $400,000 in an attempt, regulatory hurdles prevented the completion of the game development. His latest refund proposal aims to resolve the dispute.

Logan Paul's CryptoZoo saga serves as a cautionary tale in the ever-evolving and murky world of NFTs and cryptocurrencies. While his refund proposal may address some issues for disappointed players, it also highlights the complex legal and ethical issues involved in such innovative yet high-risk industries.