After the sudden announcement that development of its NFT collection was halted, CNN was accused of rug-pulling earlier this week. The project teams, launched by the famous news channel, have indeed been somewhat stingy in communication.
Was the “Vault by CNN” collection just a rug pull?
The famous non-stop news channel CNN was accused of rug pull by the crypto community, after announcing the end of its “Vault by CNN” non-fungible token (NFT) initiative:
Just saw that CNN announced the end of its bizarre NFT market where they’d sell NFTs of news stories. pic.twitter.com/UUgrozFQQU
— Parker Molloy (@ParkerMolloy) October 10, 2022
The concept of rug pull is used when people found a fictitious project, with the aim of steal money from investors. In French, we could use the expression “partier avec la caisse”.
The principle of Vault was to turn historical moments from the news channel into NFT, on the Dapper Labs Flow blockchain. We could therefore find a whole selection of outstanding video reports.
In its press release, CNN does not bother with details as to the reasons for stopping the project, and it simply announces stop its developmentleading to these rug pull accusations:
“Vault was initially launched as a six-week experiment, but the support and commitment of our community has led us to make this project something bigger. […] Although we stop growing and maintaining our community, the Vault NFT collection lives on. Visit our Discord server for more information. »
👉 To go further – NFT: how to identify and avoid the most common scams?
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Lack of detailed communication
Since Monday’s tweet, the project teams have not given any more news on their Twitter profile. On the Discord server mentioned, the “announcements” section was simply empty when writing these lines, and you had to go to the “general” room, in order to sort through the multitude of messages to hope to glean some information.
We can thus learn that despite the end of the project, the marketplace should continue to operate. In addition, although there is nothing concrete at the moment, a member of the team gives hope to investors financial compensation for their investment:
“The distribution will be made either in FLOW tokens or in stablecoins deposited in the wallet of each collector. We are currently working out the details, but expect the distribution amount to be approximately 20% of the original price of each Vault NFT held. »
Although many well-known companies are getting into the NFT industry, here we have a perfect example. showing that not everything is always a success.
Whereas CNN’s actions are open to debate on how the communication took place, this event reminds us that a major player is not necessarily the guarantee of a safe investment. Thus, special attention should be paid when analyzing an NFT project before investing a penny.
👉 Also in the news – NFT: the OpenSea marketplace lands on Avalanche (AVAX)
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