Sign of the vertiginous decline of the sector, the announcement of the end of the project NFT of the CNN press group angers investors.
They were promised to own pivotal news moments as non-fungible tokens, and today buyers are left with a bloodless Web3 project. The financial compensation is deemed too low.
End of the project in the heart of the crypto winter
We are a long way from January 2022 where the NFT craze was spreading across the media, and where any museum, press group or NBA player was announcing the creation of a line of non-fungible tokens in the face of investors. in search of new speculation. CNN, the English media group, had sniffed out the trend with the creation of The Vault, a marketplace NFT launched in the summer of 2021.
With the customary bombast of the NFT world, CNN offered investors the opportunity to “own a piece of history” by buying the headlines of the major events of the past forty years, such as the election of Obama or the release of Nelson Mandela, in the hope of reselling them for more. With a minimum admission price of $19, the collection has earned the channel more than $300,000, according to April 2022 figures.
To justify the abrupt end of this marketplace, CNN found the parade. The group said the project was only a six-week test, which had been extended thanks to growing interest from buyers. An excuse that goes badly with those who have purchased NFT CNN to the tune of thousands of dollars, and who end up with a digital product whose value is greatly reduced.
A charge of rug-pull and a compensation that goes wrong
Since a culprit must be found for this debacle, the scorned investors openly accuse the CNN group of rug-pull, a scam that consists of stopping the financing of a project in its tracks when the funds have already been collected. The multimedia group defends itself from such an accusation, and also offers financial compensation of up to 20% of the price of the original NFT.
In fact, the qualification of rug-pull is inaccurate, as waning interest in the project is solely responsible for its termination, and investors are still in possession of their NFTs. The website The Vault CNN still works and still offers to buy famous photos and clippings for prices up to $1,000 each. The date of its closure is not yet specified, and meanwhile, the NFT winter continues with a drop in transaction volume of 97% compared to the beginning of 2022.
Source : The Verge
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