Logan Paul CryptoZoo: Influencer’s project a scam?
CryptoZoo is an NFT-based game in which you can hatch virtual NFT eggs, breed hybrid animals, and play with them while earning yield in $ZOO, the project's native cryptocurrency. The NFT/crypto project was conceived by Logan Paul in August 2021.
The world-famous influencer introduced the project to the 4.5 million subscribers of his YouTube podcast, Impaulsive, as “a really fun game that makes you money". The project was well-received by NFT and gaming enthusiasts, with CryptoZoo NFTs ranking 7th on OpenSea in terms of total volume on 5 September, 2021.
Unfortunately, the hype was short-lived. Nearly two years after announcing the ideation of CryptoZoo, Logan Paul has failed to deliver the game, despite supposedly investing a million dollars into making the game and hiring credible game developers, project managers, marketers, and artists.
Investors are down by thousands and Logan Paul faces a lawsuit alleging fraud, breach of contract, and negligence. CryptoZoo is not the only instance of Logan Paul's failed dealings in the crypto space – Dink Doink and Liquid Marketplace are two failed projects he was strongly associated with.
The rise and fall of CryptoZoo (ZOO)
CryptoZoo draws inspiration from Pokemon. If you combine the popularity of Pokemon as a brand, the billions Niantic has earned from Pokémon Go, the 2021 NFT boom, and the marketing pull of Logan Paul as an influencer, it is no surprise that investors looking for quick money bought into the idea.
While Logan Paul does NOT have a glittering reputation, with several odd and somewhat deplorable past instances that come to mind, he is a brand and a half.
He rose to fame as a video blogger, was named the most famous influencer in the world in 2021, and became a WWE wrestler in 2022, committing numerous notorious acts throughout his pompous journey. Logan Paul bought more than 100 NFTs worth over $2M in 2021 and created CryptoZoo in August of that year.
The project's NFT collection was launched on 3 September, with 10,000 "Base Eggs" selling out within minutes! After scaling to 7th place in terms of total volume on OpenSea a few days later, the NFT collection failed to gather further momentum. The project's total sales volume is 2,930 ETH (over $5M currently), with a 2.5% creator fee.
At the time of writing, just 2,927 such NFTs exist, owned by 1,293 holders. The most expensive sale was $203.21 (Base Egg 119), with zero sales in the past week and very few sales in the past weeks and months.
While statistics of the NFT collection look bad, the project’s native token, $ZOO, is where investors lost the most.
$ZOO reached an all-time high of nearly $0.0005 on 26 August 2021 and fell spectacularly to just over $0.0000002 on 29 September 2021. This represents a HUGE loss for thousands of investors! Speaking to TIME, young Rueben Tauk invested over $100,000 in $ZOO in late 2021.
His investment is nearly zero at the time of writing. Currently, $ZOO is trading at a paltry ~$0.0000008. It is not hard to believe that Logan Paul faces a lawsuit requesting class-action status from buyers into the project.
CryptoZoo Logan Paul: lawsuit details
In February 2023, a lawsuit was filed against Logan Paul in an effort to bring justice to thousands of CryptoZoo investors is being spearheaded by attorney Tom Kherkher.
The lawsuit reads that Logan Paul and Co. "made the business decision to forgo an expensive and time-consuming process to create a functional CryptoZoo game or support it, and instead deliberately undertook a scheme to defraud Plaintiff and other consumers".
If the class-action status is granted, thousands of investors who are victims will be eligible to join. Before filing the lawsuit on 13 January, 2023, Logan Paul said he would refund token holders at least $1.3M and complete the game (after being called out by Coffeezilla).
It is yet to be seen what will happen – will he refund $ZOO holders and finish the game, or will the law take matters into its own hands? We at Moni Talks hope all investors are reimbursed.
Author: Surajdeep Singh
Surajdeep Singh has been working in the tech sphere as a marketing guru and journalist for over 6 years, with his speciality laying in blockchain and Web3. He has donned several hats in marketing and journalism over the years and worked with many reputable brands. Feel free to reach out to him on LinkedIn!