Well-known YouTuber Logan Paul was controversial for a while because of an alleged fraudulent crypto project he was behind. The recent documentary entitled “5 Months with Logan Paul” reveals more details about his project, CryptoZoo.
Wat is CryptoZoo?
CryptoZoo was a project focused on non-fungible tokens (NFTs), which aimed to create an interactive and immersive digital world. The goal was to develop a game based on blockchain technology in which players could collect, trade, and breed unique digital animals. These digital beings, represented by NFTs, would each be unique and their ownership would be verifiable via the blockchain.
What was the problem with CryptoZoo?
Logan Paul came under fire for controversy surrounding his NFT project CryptoZoo. The project promised a game where users could breed animal NFTs to earn ZOO tokens, but the game never materialized as promised.
This led to accusations of fraud and misleading investors and developers. A well-known YouTuber called Coffeezilla published a series of investigative videos claiming that the project had defrauded investors.
In response, Paul threatened legal action against Coffeezilla, but later retracted these threats. Paul attempted to address the situation by announcing a $1.5 million recovery plan for the disappointed players and investors, emphasizing that he wanted to focus on correcting the mistakes surrounding CryptoZoo and setting things right with fans and investors .
Nevertheless, it took twelve months and a class action lawsuit before the compensation program actually came into effect.
In February 2023, affected investors took legal action against CryptoZoo and Paul, alleging a ‘back pull’, a scenario in which the initiators of a project suddenly withdraw and steal significant amounts of money.
Logan Paul’s response
In the documentary, Logan Paul talks to journalist Graham Bensinger to defend himself against the criticism and accusations of fraud surrounding the CryptoZoo project. Paul firmly claims that CryptoZoo was not a fraud, despite the persistent allegations.
He admits that some criticisms are partly justified, but emphasizes that the problems arose mainly from his inability to manage the project effectively at the time. Paul also reveals that he personally suffered a financial loss of approximately half a million dollars as a result of the project, which he presents as evidence that no cheating was involved.
He also says that the consequences of the project led to suicidal thoughts, something he had never experienced before in his life. Paul is determined to defend himself against those who have falsely portrayed CryptoZoo as a fraud, especially the reporting of YouTube journalist Coffeezilla, which he considers biased.
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Source: https://newsbit.nl/youtuber-logan-paul-beweert-dat-cryptozoo-geen-oplichterij-is/
