The Truth Behind CryptoZoo's Alleged NFT Scam

ChainPlay

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one year ago

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Logan Paul's CryptoZoo NFT game has recently come under fire for its controversial business practices. The game, which allows players to buy $ZOO coins to purchase NFT eggs that hatch into animals, has surfaced as a massive crypto scam that involves the loss of millions of dollars from investors.

The mastermind behind the scam, Logan Paul, is an American Youtuber Star and Influencer that has developed a loyal fanbase, allowing him to venture into other careers such as Wrestling and Boxing. Over time, he has developed into a controversial figure who has faced criticism in the past for his online behavior and actions. 

Back in 2021, Logan Paul launched the blockchain game project CryptoZoo which gained a lot of attention. However, fast forward to today, and the game has not met the expectations of its investors.

What is CryptoZoo?

CryptoZoo is a Binance Smart Chain play-to-earn NFT project that allows users to trade, breed, and collect animals in order to earn $ZOO tokens. It has been compared to games like Axie Infinity, which borrows elements from Pokemon to create a fun creature-themed collectible economy powered by the blockchain.

CryptoZoo NFT asset

Logan Paul described the game to be “a really fun game that makes you money”, highlighting its potential for earning via the yield generated from the assets. Additionally, he differentiates CryptoZoo from other collectible NFT games by claiming he was specifically “hand-made drawings” that represented each NFT animal.

The Scam behind CryptoZoo

The entire project was sketchy from the beginning and Logan Paul had been involved in a similar NFT project that resulted in many investors losing money called Dinkdoink. However, an investigation by Youtuber-crypto detective, Coffezilla(Stephen Findeisen), dove deeper into the issue which uncovered several pieces of information indicating the project was in all honesty- a scam.

Investors reportedly bought $2.5 million worth of eggs on the first day when the project came out. However, after "hatch day," the price of eggs fell by 63% in just 24 hours. This was followed by a period of silence from Logan Paul, leading some to speculate that he had abandoned the project.

CryptoZoo price action

Moreover, Stephen uncovered Paul did not pay developers, causing a controversial pause in the project's development. 

It’s also worth mentioning that the game has been reported to have never been in a playable state despite users spending half a million USD for the game. “Helicopter Bob”, one of the project’s investors, spoke out about how users could not even retrieve their zoo coin yields, relegating investors’s assets to a measly overpriced JPEG.

CryptoZoo official website 

Latest Developments

It is important to note that these allegations are still developing as we speak. Since Stephen’s video went viral, Logan Paul has resurfaced in the project’s discord group. 

He has also claimed that a developer held the gaming code hostage for a $1 million ransom. According to Coffezilla, this is true but it was only done due to Logan Paul owing the development team their salaries.

Just recently, Logan retaliated by threatening to file a lawsuit against the Crypto detective. He has stated this in his latest Youtube video that you can check out here.

It remains to be seen how this story will continue to develop, but it serves as a cautionary tale for those considering investing in cryptocurrency and NFT projects. It is always important to do your due diligence and research before making any financial decisions, especially in the often-volatile world of crypto.

This story also coincides with the current shift towards play-and-earn, highlighting that the future of GameFi resides in crafting a fun-driven game, instead of speculation. Considering how Logan Paul marketed his game primarily on its earning potential, perhaps this shift holds more weight in the long run.

It is also important to remember that even with the promise of earning potential, there is always a risk of losing money, and it is crucial to be aware of and prepared for that possibility. As this story continues to unfold, we will be sure to keep you updated on the latest developments.