Logan Paul to buy back NFTs sold to CryptoZoo investors, but there’s a catch
Logan Paul announced in an X post that he has “personally committed” to a $2.3 million to buy back eggs associated with the failed non-fungible token (NFT) game CryptoZoo. However, anyone who gets a buy-back in this way is agreeing not to participate in any legal action against Paul, including the class action lawsuit he is currently subject to.
The time frame to claim buybacks lasts until Feb 8. Paul is providing claimants 0.1 Ethereum (ETH) for each eligible returned NFT, which some might see as better than nothing. It’s about the equivalent of $224. However, it’s a lot less than they might be eligible for if the class action lawsuit against Paul succeeds.
The ground-level buy-in for CryptoZoo consisted of ‘Base Animals’ or ‘Base Eggs’, NFTs that would eventually be used in-game for breeding and other activities. The game, which was announced on YouTube in August 2021, was meant to be a “really fun game that makes you money,” but was never completed.
Today, I am incredibly happy to announce that I am delivering on my promise to buy back Base Egg and Base Animal CryptoZoo NFTs for their original purchase price. This buy-back program is being carried out at https://t.co/XIQzLAGKiG. Claims can be submitted through this site… pic.twitter.com/VMPDHvdXkq
— Logan Paul (@LoganPaul) January 4, 2024
Base Eggs and Base Animals frequently cost over 1 ETH each (over $2200). The buy-back amount being offered by Paul is a fraction of that. Paired with the terms and conditions of the refund stating that claimants “are waiving any actual or anticipated claims against Paul”, there is speculation that he is trying to minimize his losses.
Logan Paul faces class action lawsuit over CryptoZoo
Class action lawsuit damages can include full refunds of what the buyer initially lost, plus damages and fees. “Paul may be betting (or at least hoping) that enough people who would otherwise be potential class members will take him up on this offer and drastically reduce his potential exposure in the pending case by doing so,” said Rob Freund, a lawyer who spoke to TechCrunch about this issue. “That would let him angle for a much more favorable settlement.”
The social media influencer and professional wrestler has this week filed a counterclaim to the class action suit, alleging that two of the people who also worked on the game are “con artists” who “sabotaged” CryptoZoo. He has made the full counterclaim document public.
Paul claims that he never made any money off CryptoZoo; “In fact, the opposite is true, because I spent hundreds of thousands of dollars trying to make it happen,” he said on X, going on to say that the game will never be released. “I personally spent $400,000 to have it developed and after its completion in early 2023 & some further diligence, unfortunately, there are too many regulatory hurdles that would need to be cleared that I did not originally understand and would ultimately delay this buy-back even further.”
Featured image credit: Erik Drost via Wikimedia Commons and @CryptoZooCo
The post Logan Paul to buy back NFTs sold to CryptoZoo investors, but there’s a catch appeared first on ReadWrite.