Logan Paul Offers Partial Refund For Failed CryptoZoo Game

Logan Paul has started buying back NFTs from fans who lost money playing his failing cryptocurrency game.

The YouTube star introduced CryptoZoo in 2021, but it has yet to come to fruition despite followers investing millions in-game tokens.

Paul, 28, has now stated that he will purchase back the NFTs, provided that supporters who accept do not sue him.

Fans would receive partial refunds.

Logan Paul Offers Partial Refund For Failed CryptoZoo Game

CryptoZoo was designed to be a game where users purchased, sold, and reared virtual animals with cryptocurrency.

Paul encouraged people to buy cryptocurrency collectables for what he dubbed a “really fun game that makes you money” at the time.

However, after selling millions of dollars in NFTs and cryptocurrency, he ceased talking about CryptoZoo and appears to have abandoned the idea.

After another YouTuber, Coffeezilla produced a series of videos outlining his inquiry into the project in December 2022, Paul apologized and stated that he intended to “make this right”.

A year later, he announced the commencement of the buy-back procedure, which he estimates would cost him $2.3 million (£1.8 million).

He would repay players 0.1 Ether, a cryptocurrency, for each NFT bought.

The NFTs were initially auctioned in September 2021 for 0.1 Ether.

However, its monetary value has decreased by 37% since the launch of CryptoZoo NFTs; thus, fans will continue to lose money.

In a message on X, formerly Twitter, Paul wrote: “This buy-back is a means for me to compensate individuals that planned to play CryptoZoo.

Logan Paul Offers Partial Refund For Failed CryptoZoo Game

“The buy-back is not intended to compensate those who gambled on the crypto market and lost.”

He went on to say that it was “not intended as an investment vehicle”.

People have until February 8, 2024, to accept the reimbursement, and they must do so on the condition that they do not file any legal claims against Paul or anybody associated with CryptoZoo.

One investor who invested $40,000 in NFTs told the BBC last year that he did not want a refund and wanted Paul to finish the project so that the much-hyped game and NFTs could reach their full potential.

“I don’t think it will ever be as big as it could have been but I think it’s important that ‘founders’ do what they promise investors,” said the 35-year-old.

Paul previously advocated the cryptocurrency Dink Doink in June 2021, but its value plummeted and is now useless.

He later told the New York Times that he regretted promoting the cryptocurrency without disclosing that he had contributed to its creation and had a financial stake in it.

Logan Paul Offers Partial Refund For Failed CryptoZoo Game

“I definitely didn’t act as responsibly as I should have,” he told me.

The CryptoZoo case “highlights the risks associated with investing in a relatively new and unregulated market,” says lawyer Syedur Rahman, a partner at Rahman Ravelli specialising in cryptocurrency fraud cases.

While Mr Rahman does not believe the high-profile instances will significantly influence cryptocurrency’s general reputation, he does believe they will spur “discussions about the necessity of additional regulations”.

The extent of regulation varies by jurisdiction, but Mr Rahman believes customers “may well have rights in NFT purchases or things of that nature”.

He claims that the amount of money they initially invested will determine whether they want to go through litigation to recover their investment because the expense and inconvenience of going through the courts may outweigh the amount they receive.

SOURCE – (BBC)