Influencer Logan Paul Launches His Cryptozoo NFT Platform Turns Out To Scam Millions Many Investors Outraged Over Breach Of Trust

When American influencer Logan Paul announced plans to create his Cryptozoo NFT platform, many people saw an opportunity to make money. Several months after this announcement, the project has never been finalized and investors have reaped only outrage, bitter experiences and a drain on their wallets. The project turned out to be a big scam that sucked millions of dollars out of investors.

Cryptozoo is a crypto project launched as a play-to-earn game in September 2021. You buy a token called Zoo. The tokens you get allow you to buy virtual pet eggs or simply NFTs. When an egg closes, it gives an animal. And if you feed multiple animals, it’s possible to create hybrid animals. With these animals hybrid or not, their owners have received the promise of having a daily passive income based on a ratio linked to the investment to which the animal corresponds. Also, you can burn an NFT to recoup the amount you got with the created pet if you want to get rid of it.

The main argument used to attract investors is initially Paul Logan himself. Paul Logan is a well-known influencer in the United States. And for good reason, he combines the roles of actor and professional wrestler in World Wrestling Entertainment (WWE). He also owns his own YouTube channel which has over 23 million subscribers following him. A few months ago, Forbes ranked the best content creators on YouTube and Paul Logan was on the list. Paul has also run the Impausive podcast since November 2018 and has over 4 million subscribers. Taking advantage of this visibility, when Paul announced the creation of a cryptocurrency platform, many people did not hesitate to invest in this project. With such a defensive image for Paul, many investors told themselves there was no fear of a scam. But far from it!

There are many play-to-earn projects. We can mention the famous Axie Infinity whose token was valued over $100 last year, but today it is worth only $6. To make his project eye-catching and different from the competition, Paul explained that the animals in the game are artistic masterpieces. than six months of manual work and not a mass generation of NFTs from an application. When the first draft of the project was launched, the observation was bitter. Animal images are from the Adobe Stock image gallery.

On the first day of the soft launch, people were so excited to get a good deal investing in this project that they bought 2.5 million eggs. Purchase volumes were counted in the tens of millions a day while a debut game had not even been delivered. It might seem stupid to invest without a minimum guarantee, but the credibility placed in Paul was such that the project has raised millions of investments even before the game’s release: an Australian explains that he has invested 500,000 dollars in it, while another speaker confesses put more than $50,000 on the table. There are millions of investors, not counting business angels.

But the problem is when the game was never delivered as such. When the eggs were purchased, the keepers never had the opportunity to hatch them into animals and then feed them to hybrid animals. Nor was it possible to burn and recover the bet if one wanted to get rid of an egg or an animal. And things got worse when Paul announced that he was working on a secret project. While many believed it was a matter of delivering the game to the public so that those who invested in it could recoup their share, Paul said no. The new project has nothing to do with the old project. The shock wave was overwhelming. Having failed even to make a game that many people have invested in, here he is moving on to another project as if nothing had happened. On the web, speakers have not failed to cry out indignation and fraud. It should be noted that the project was valued at over $2 billion at one point.

To defend himself, Paul explains that the lead developer fled to Switzerland with the source code of the project and demands from Paul the sum of one million dollars to make the code available. This, according to Paul, is why the game was killed in the uf. For his part, lead developer Eddie Ibanez defends himself by explaining that he has never received compensation for his services as a developer. According to him, this sum corresponds to what Paul owes him. Another developer would also have confirmed that Paul would not owe him the debts as a developer. Between Paul and Eddie, who should we believe? It should be noted that by digging on Eddie’s side, the latter would have passed himself off as an orphan, while his parents are still alive. But disturbingly, to build a reputation above the crowd, he allegedly claimed to be an MIT graduate and working for the FBI in the information security department. But all of these claims are false.

In addition to Eddie being part of the project, we also had Jake aka Crypto King acting as a consultant. When the project started, it was built in two phases. A first phase sale of the Zoo token has been launched anonymously to raise funds for the liquidity pool. To do this, the promoters of the project sold the Zoo tokens at very low prices to resell them to their entourage in order to avoid a presale that would attract the eyes of the SEC (Securities and Exchanges Commission, the American authority for financial markets). When the second phase (public sale of the zoo token) was launched in September 2021, the public had the opportunity to buy eggs at a higher price. And token purchases have skyrocketed.

The problem is that in managing the project, Paul did not control any of the other project promoters’ portfolios. In principle, to prevent some people who had the opportunity to buy cheaper tokens at an early stage from selling as soon as the price rises and thus causing the token price to drop, a vesting method is implemented. This allows early buyers to sell their tokens only after a certain period, which allows the project not to die as soon as it is put into public service. But with Paul’s project, it was just verbal recommendations with no blocking of wallets. So as soon as the value of the token started to go up, they witnessed an abnormally massive token sell-off. After investigating, they realized that some of the founders’ wallets had sold their tokens en masse. To fix this, they created a version 2 of the token and of the approximately 11,250 wallets, only 11,000 received airdrops equal to the amount they had from the first token. Jake, the advisor to the project known as the Crypto King, held multiple wallets. He started complaining that he had more than 5 wallets that were blacklisted and therefore he didn’t receive the new token. Apparently, Crypto King who initially invested $200,000 would sell off the tokens they had in droves. And since he had many wallets, not all of them were blocked. He would then have cashed out around $6 million after selling his he tokens. It could be argued that Paul Logan is not guilty, as apparently he didn’t sell his chips. But that’s nothing.

It is by relying on him that many people have invested their money. You are responsible for the failure of this project. She is also responsible if his team members start defrauding investors. Additionally, he sold smoke by making false claims about NFTs that they were made by artists. He also lied to them that it was a game that was going to make them money. Ultimately, no investor other than a few of Paul’s team was able to make any money. Likewise, he has never made a clear assessment of what happened by placing the responsibilities and wants to launch a new project. Does he want to make new victims? What we can learn from this case is that team members started scamming each other before scamming the public. It was all these setbacks in the world of the crypto sphere that led Stephen Diehl, a software engineer, to state in no uncertain terms that NFTs (non-fungible tokens) are a scam. Fred Ehrsam, the co-founder of Coinbase, agrees, stating that around 90% of NFTs will be worthless in 3-5 years. With this case of NFT scam and interposed cryptocurrencies, what comments do you make?

And she ?

What do you think of this scam under the guise of NFTs?

What do you think of people who continue to invest in NFTs?

Have you ever been a victim of a scam after investing in an NFT or cryptocurrency project? Your experiences are awaited.

What advice can you give users so they don’t get scammed?

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