Cointime

Download App
iOS & Android

Logan Paul’s CRYPTOZOO Scam

Validated Individual Expert

“Your addiction to clicks has clouded your judgment and you’ve made very real errors with very real repercussions.” — Logan Paul is suing Coffeezilla for documenting the alleged CRYPTOZOO scam.

Coffeezilla aka Stephen can best be described as “The Internet Detective” and is known for going after fake gurus and crypto scams. He recently released a three part series chronicling the story of Logan Paul’s NFT project CRYPTOZOO.

It’s a project that was initially introduced on the Impaulsive podcast by Logan as “A really fun game that makes you money.”

Logan touted many things that would make CRYPTOZOO a success:

A strong dev team.Unique hand drawn art.Logan’s backing of a million dollars in development and his marketing support.

Despite its lofty promises, CRYPTOZOO ultimately failed to deliver on many of its promises and effectively rugged its community.

CRYPTOZOO allowed users to buy a crypto token called $ZOO which is the in game currency that can be used to buy Egg NFTs.

Egg NFTs could be hatched into animals. Two animals could then be bred with each other to create unique animal hybrids.

The animal NFTs could earn players passive yield in the form of additional $ZOO tokens based on rarity. The animal NFTs could eventually be burned to release accrued $ZOO tokens that could be reinvested back into the system or used to cash out.

With the promise of easy money, many users flocked to the project and collectively invested millions of dollars on launch day. The $ZOO token skyrocketed in value and reached a $2 Billion market cap with tens of millions in trading volume per day.

All seemed good on the surface but as the game got closer to launch, the community began to notice that the “unique hand drawn art” that was promised looked like poorly photoshopped Adobe stock images.

When hatch day came, the community discovered that the core mechanic of CRYPTOZOO — passive yield on NFTs did not work and some users even struggled to hatch their eggs.

The polish that was expected from a Logan Paul NFT project with over $1 million in backing felt like it was lacking in substance.

When the community discovered the myriad of issues on launch day, the $ZOO token nosedived over 63%. Logan Paul who up until now had been shilling CRYPTOZOO nonstop never showed up with the marketing support that was promised and seemingly abandoned the project.

This had all the hallmarks of a NFT rugpull and was orchastrated by one of the biggest influencers in the world.

Coffeezilla’s series uncovers a wild story consisting of criminals, fake orphans, and a talent manager that was part of an alleged market manipulation scheme.

Logan finally responded to the allegations this week and instead of providing a meaningful explanation for his actions, opted to threaten Stephen with lawsuit instead.

Time will tell how this story plays out but CRYPTOZOO will go down as one of the more interesting and criminal intersections of Web 3 and the creator economy.

Comments

All Comments

Recommended for you

  • Suspected Amber Group address withdraws 3 million SAFE from Gate.io

    Spot On Chain monitoring shows that wallet 0x011 (possibly Amber Group) withdrew 3 million SAFE tokens (worth $6.72 million) from Gate.io for the first time at a price of $2.25, six hours ago. It is worth noting that the price of SAFE has fallen by about 36% since April 23, 2024.

  • Franklin Ethereum ETF EZET listed on DTCC website

    COINOTAG has stated on the X platform that the Franklin Ethereum ETF EZET has been listed on the DTCC website.

  • Grayscale GBTC Bitcoin holdings fell below 300,000 BTC

    Official data from Grayscale shows that as of April 26th local time, GBTC's Bitcoin holdings have fallen below the 300,000 BTC mark to 298,445.4699 BTC, a decrease of approximately 2,167 BTC from the previous day. Additionally, GBTC's assets under management (non-GAAP) have decreased to $19,052,609,573.56, and its circulating shares have decreased to 335,190,100.

  • Hong Kong Investment Commission: Virtual asset spot ETFs can be bought and sold through banks

    Hong Kong investors and the Financial Education Committee have stated that the investment scope of spot virtual asset ETFs is limited to virtual assets (currently limited to Bitcoin and Ethereum) provided to the Hong Kong public for buying and selling on virtual asset trading platforms holding China Securities Regulatory Commission licenses. Trading counterparties must buy and sell virtual assets through licensed virtual asset trading platforms to reduce counterparty risks. Asset custody must be entrusted to designated institutions regulated in Hong Kong, such as licensed virtual asset trading platforms, banks, or their subsidiaries registered in Hong Kong, to reduce custody risks. Investors can buy and sell virtual asset spot ETFs through securities firms or banks. Some virtual asset spot ETFs also provide non-listed fund unit categories, which operate similarly to non-listed funds. Investors can apply for and redeem units through securities firms or banks.

  • Lido: SSV Simple DVT testnet has ended, selected participants will join the mainnet Simple DVT module

    Lido announced the end of the SSV Simple DVT testnet on the X platform and will soon launch the mainnet. In the next few weeks, selected participants will use SSV technology to join the Lido Simple DVT module on the mainnet.

  • Justin Sun redeemed 85.53 million USDT from JustLend 4 hours ago and immediately transferred it to Binance

    As monitored by on-chain analyst Yu Jin, 4 hours ago, Sun Yuchen's Tron address (TXN...752) redeemed 85.53 million USDT from JustLend and immediately transferred it to Binance.

  • ETH falls below $3,100

    According to market data, ETH has fallen below $3,100 and is now trading at $3,099.54, with a daily decline of 1.04%. The market is volatile, so please be prepared for risk control.

  • Decentralized Hedge Fund NFA Labs Receives $10 Million Investment

    Decentralized hedge fund NFA Labs recently partnered with investment fund and asset management company Quantix Capital, receiving a capital commitment of $10 million to develop the ecosystem. The platform aims to bring professionalism and security to the DeFi world of real-world markets. This investment will further improve the NFA platform and expand its global influence, helping NFA Labs achieve its mission of providing accessible, fair, and information-rich resources for cryptocurrency traders.

  • Hong Kong Securities Regulatory Commission: China Ecological Tourism Group's acquisition of a blockchain company was improper and disciplinary action has been taken

    The Securities and Futures Commission (SFC) of Hong Kong has announced that it has taken disciplinary action against China Ecotourism Group Limited (China Ecotourism) and its seven current and former directors in collaboration with the Hong Kong Stock Exchange (HKEX). The investigation mainly focused on improper conduct, including granting 13 loans totaling HKD363 million and RMB91 million to nine borrowers, and acquiring a 37.5% stake in a blockchain technology company for HKD35 million.

  • Survey: 75% of Nigerians Confident in Using Bitcoin for Financial Transactions

    A new survey shows that 75% of Nigerians are confident in using Bitcoin for financial transactions. This survey result comes at a critical time in Nigeria's traditional financial market. In recent months, the Nigerian currency, the Naira, has sharply declined, and the government is trying to maintain the Naira exchange rate while also targeting cryptocurrency. One of the measures recently taken by the Nigerian Securities and Exchange Commission (SEC) regarding the cryptocurrency industry is to propose a significant 400% increase in registration fees for cryptocurrency exchanges.