YouTube Star And NFT Project Subject Of Class Action
Logan Paul is a YouTuber, internet personality, and influencer who rose to fame through his controversial videos and stunts. Born in 1995, Paul began his career as a Vine star and later transitioned to YouTube, where he has amassed a massive following. He is known for his humor and prank videos, as well as his athletic and adventurous content.
However, Paul has also been involved in a number of controversies, ranging from inappropriate behavior to insensitivity towards important social and cultural issues. In 2017, he faced widespread criticism for posting a video in which he discovered a dead body in Japan’s Aokigahara forest, also known as the “Suicide Forest.” This led to a temporary suspension of his channel and sparked a heated discussion about the ethics of content creation and distribution on social media platforms.
Since then, Paul has faced several other controversies, including a feud with fellow YouTuber KSI, offensive remarks, and accusations of spreading misinformation. Despite this, he has maintained a significant following and continues to be a prominent figure in the online community.Lately the Internet sensation has seen backlash for his involvement with a NFT project that has mostly gone underdeveloped or is basically non-existent.
Crypto Zoo Lawsuit
Logan Paul and the NFT project CryptoZoo have been hit with a class-action lawsuit alleging a “rug pull.” CryptoZoo was introduced in September 2021 as an NFT-based game that allowed virtual ZooKeepers to buy, sell, and trade exotic animals on the blockchain.
According to the lawsuit filed in the District Court of the Western District of Texas, the defendants used Paul’s online influence to deceive and mislead people unfamiliar with digital currency into purchasing CryptoZoo NFTs. The plaintiffs claim that the defendants promised benefits, rewards, and exclusive access to other cryptocurrency assets in the future, but these were false promises.
The lawsuit alleges that the game was either non-existent or not functioning and that the defendants manipulated the digital currency market for their own benefit. After selling all the NFTs, the defendants transferred the funds to their own wallets, according to the filing.
Logan Paul is joined by several other defendants including his assistant, manager, and the lead developer of CryptoZoo. The lawsuit comes at a time when Paul has taken some responsibility for recouping the losses made by investors in CryptoZoo by launching a $1.3 million rewards program and apologizing to a crypto YouTuber who had criticized him for his involvement in the situation. The apology was seen as disingenuous and the YouTuber that called him out won a decisive victory against Paul- not surprisingly.
Rug pull explained
The concept of a “rug pull” refers to a situation where crypto developers raise funds for a new token or NFT line, promising certain benefits to consumers but then abandon the project and keep the buyers’ funds, failing to deliver the promised benefits. This lawsuit against Logan Paul and CryptoZoo adds to the list of celebrities who have come under scrutiny for promoting NFT projects without appropriate disclosures.
In August 2022, a US consumer watchdog group named Truth in Advertising (TINA) named 17 high-profile celebrities, including Gwyneth Paltrow, Eva Longoria, Floyd Mayweather, and Paris Hilton, for allegedly promoting NFTs without the necessary disclosures.
The lawsuit against Logan Paul and CryptoZoo highlights the risks and challenges associated with NFT-based projects, particularly in the absence of regulation and oversight. As NFTs continue to gain popularity, it is important to exercise caution and thoroughly research a project before making any investments.
Thanks for reading our Solanews content , be sure to follow our social media channels for more!