Logan Paul disclosed that he would contribute 1,000 ETH to the scheme in order to pay off angry investors who want to withdraw their money by burning their CryptoZoo NFTs.
The controversial non-fungible token (NFT) project CryptoZoo of YouTuber Logan Paul has a $1.5 million rescue plan for its backers. Paul stated that he is no longer seeking to sue fellow YouTuber Coffeezilla for defamation over claims he made in a critical series of films on Paul’s NFT project when he made the announcement in a video broadcast through Twitter on Jan. 13.
Paul stressed that his current priorities include improving CryptoZoo, completing the roadmap, and making amends with the community and investors:
“The fact is, suing Coffeezilla is not going to help Cryptozoo holders so I do need to focus my attention where it should be, which is on fans and supporters of me.”
Paul detailed the three steps of his healing process. Initially, he and his manager and co-founder of CryptoZOO Jeff Levin will burn their ZOO token holdings in order to “have no financial upside” in the game and presumably increase the token’s value.
Secondly, he stated that he would personally invest 1,000 ETH as part of a rewards scheme that would allow “disappointed” investors to burn their NFTs in order to recover the original 0.1 ETH ($150) mint price.
It’s important to note that the 1,000 ETH was worth that much at the moment Paul tweeted that he would contribute $1.3 million to the rewards scheme. ETH’s price, along with many other prominent assets, has since been on a significant pump, increasing 10.2% in the last day to reach about $1,548 at the time of writing.
The third stage, according to Paul, is to “obviously finish and deliver the game as outlined in the whitepaper,” which was once advertised as a play-to-earn game that entailed breeding animal NFTs to collect ZOO token rewards:
“To say I am disappointed in how this was handled internally is an understatement, there’s a full internal investigation going on along with an audit and we are going to pursue full legal action for whoever needs to be held accountable.”
Paul did add that any money collected during the process would be given to the neighborhood. The community’s response to Paul’s Twitter public message was diverse; some applauded his efforts, while others kept heaping on more criticism.