Logan Paul offers partial refund for failed crypto game
Logan Paul is taking steps to repurchase NFTs from fans who lost money in his failed cryptocurrency game.
The YouTube star had announced the game CryptoZoo in 2021, but it never materialized despite fans spending millions on game tokens. Now, Paul has stated that he will buy back the tokens, but only if fans agree not to sue him. However, it is unlikely that fans will receive a full refund of their expenses. CryptoZoo was meant to be a game where players could buy, sell, and breed virtual animals using cryptocurrency.
Paul had encouraged people to invest in cryptocurrency collectibles for what he claimed would be a “fun game that makes you money.” However, after selling millions of dollars’ worth of NFTs and crypto coins, he stopped mentioning CryptoZoo and seemingly abandoned the project. In December 2022, another YouTuber named Coffeezilla released a series of videos investigating the project, prompting Paul to apologize and express his desire to make things right.
Now, a year later, he has announced the start of the buy-back process, which will cost him $2.3 million. He plans to refund players with 0.1 Ether, a cryptocurrency, for each NFT purchased. The NFTs were initially sold in September 2021 for 0.1 Ether, but their monetary value has since dropped by 37%, resulting in financial losses for fans.
Paul clarified that the buy-back is meant to compensate those who intended to play CryptoZoo, not those who made speculative investments in the crypto market. Fans have until February 8, 2024, to accept the refund, provided they agree not to pursue legal claims against Paul and other individuals associated with CryptoZoo.
One investor who spent $40,000 on NFTs expressed disinterest in a refund, instead wanting Paul to follow through with the project and ensure the game and NFTs reach their potential. Paul has been involved in previous cryptocurrency promotions, including Dink Doink, which experienced a significant drop in value and is now worthless.
Reflecting on these experiences, Paul admitted to lacking responsibility and regretted not disclosing his involvement and financial stake in the cryptocurrency.
The CryptoZoo case highlights the risks associated with investing in a relatively new and unregulated market.