Celebrity halo ineffective? NBA players, actresses' NFT projects at a standstill, floor prices collapsing, resembling a soft Rug Pull.

The NFT sector has been attracting celebrities in the past few months, but the market is rife with scams. Even projects initiated by celebrities may not be reliable. Former adult film star Lana Rhoades and NBA Sacramento Kings player De’Aaron Fox both launched NFT projects that ended in failure, taking away investors' Ethereum worth approximately $1.5 million each.

Swipa The Fox

De’Aaron Fox's decision to halt his NFT project "Swipa The Fox" seems understandable as he believes it has been affecting his ongoing season and player identity. He announced a temporary pause, stating on Twitter:

"Wanted to talk about the recent NFT project I launched, the timing of the project was terrible, I tried to collaborate with professionals and outsource parts of the project, but I am not satisfied with the time and execution required for the project throughout the season. While it is a growing brand around the project, I have obligations to fulfill to the Kings and the fans, who deserve my full attention. As previously emphasized, I look forward to executing this project in the right way again, adding value to the holders, and am excited to learn from the NFT community. I will update the project after the season ends."

Swipa The Fox launched in January this year, with Forbes reporting that the NFT project earned around 475 ETH, approximately $1.5 million. Currently, the project:

• Twitter and IG accounts are deactivated, visible only to followers.
• Official website has been removed.
• Discord now only has an announcements section.

De’Aaron Fox expressed regret on 2/24 in the DC group, promising "All Rookies" members 5-9 NFTs and a signed jersey, and mentioned rewarding "MVP" members with 20 or more NFTs, without specifying the rewards.

According to OpenSea data, Swipa The Fox had an average price of 0.1158 ETH at launch, with the current floor price at 0.008 ETH.

De’Aaron Fox has limited comments on his tweets, and through a retweet, it is evident that the public generally views this as a Rug Pull event, highlighting the perceived need for regulation in the NFT space.

Experienced DeFi trader DegenSpartan stated that many NFT projects are initiated by anonymous teams, suggesting that even if investors identify the anonymous teams, seeking recourse may be futile.

The Block's Research VP Larry Cermak responded:

Anonymous teams cannot raise this much money with a garbage NFT. This is another way for NBA players to make money from fans, but I don't understand why they have to add a bunch of utility. Just say it's art for sale and call it a day.

CryptoSis

Former adult film star Lana Rhoades, who reportedly dated Brooklyn Nets star Kevin Durant, had her NFT project "CryptoSis" exposed by YouTuber Coffeezilla, claiming she had drained $1.5 million worth of Ethereum from the wallet.

Coffeezilla labeled this as a Rug Pull event, citing another adult star Mia Malkova's comments in her own DC group on Discord. Mia Malkova alleged that Lana Rhoades lost interest in further developing the project due to overly negative and harsh comments in the group.

However, current status of the project reveals:

• Twitter and IG accounts remain active but have not been updated for about a month.
• Official website is still operational.

It is known that Lana Rhoades does not frequently use Twitter, but she announced the beginning of the project's minting in late January on her personal IG, with the profile picture still displaying "CryptoSis."

In response to the exposé video, she explained in the DC group that she had recently given birth to a son but was still trying to keep up with the project's progress and development:

I try to complete what's mentioned on the roadmap every week. When I took over this project, I was told I only needed to design NFTs and promote them, but it seems the project is not progressing as planned. I have to put in more effort; the $1.5 million is not mine, it's not my wallet, and the team and designers need their share too.

She emphasized that the floor price is uncontrollable but she will seek collaborations to see if they can bring value to the project through merchandise and other utilities.

Overall, both "CryptoSis" and "Swipa The Fox" projects share similar characteristics, initiated by celebrities, experiencing floor price collapses, unclear NFT positioning, and utilities, with the creators pledging future accountability. While this may not reach the level of a Rug Pull or fraud, describing it as a soft Rug Pull is not an exaggeration.