Logan Paul unveiled a $1.5M strategy to recover CryptoZoo

Key takeaways:

  • Logan Paul disclosed a plan to pay off investors; he would contribute 1,000 ETH to the scheme investors.
  • Paul declared that he had withdrawn his slander lawsuit against Coffeezilla.

For the investors in his troubled NFT business CryptoZoo, YouTuber Logan Paul has presented a $1.5 million recovery plan.

Paul declared in a video aired through Twitter on January 13 that he is no longer attempting to sue fellow YouTuber Coffeezilla for defamation over claims he made in a critical series of films on Paul’s NFT initiative. Paul made it clear that his current priorities are correcting CryptoZoo, completing the roadmap, and making sure that fans and investors are satisfied:

“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.”

Logan Paul detailed the three steps of his recovery process. Initially, he and his manager and co-founder of CryptoZOO, Jeff Levin, will burn their ZOO token holdings to “have no financial upside” in the game and presumably increase the token’s value.

Second, he asserted that he would personally contribute 1,000 ETH as part of a rewards program that allows “disappointed” investors to burn their NFTs to recover the original mint price of 0.1 ETH ($150).

It’s important to note that the 1,000 ETH was worth that much when Paul tweeted that he would contribute $1.3 million to the rewards scheme. However, the price of ETH, along with several other prominent assets, has recently been on a solid pump that has seen its price rise 10.2% over the previous day to sit at about $1,548 at the time of writing.

“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 claims that the third stage is obviously to finish and deliver the game as described in the whitepaper. This game was initially promoted as a play-to-earn title that required players to breed animals to receive ZOO token rewards. The community’s response to Paul’s Twitter tweet varied; while some applauded his efforts, others criticized him.

The hacking effort cost LendHub, which bills itself as the “most secure,” $6 million a few days ago. In addition, a new scam called “Address Poisononing” has recently gained popularity in cryptocurrency. 

Deep Dalal
Deep Dalal

Newsletter

Crypto News, NFTs and Market Updates

Can’t find what you’re looking for? Type below and hit enter!