YouTuber Logan Paul has revealed a $1.5 million refund scheme for people who invested in the beleaguered non-fungible token (NFT) project CryptoZoo.
Announcing the move in a video shared via Twitter on Jan. 13, Paul reiterated that he was no longer looking to sue fellow YouTuber Coffeezilla for defamation over accusations he made in a critical series of videos about Paul’s NFT project.
As such, Paul emphasized that he is instead focused on fixing CryptoZoo, presenting a roadmap and getting things right with fans and investors:
“The reality is that filing a lawsuit against Coffeezilla will not help Cryptozoo holders, so I need to focus my attention where it needs to be, which is for my fans and supporters.”
Paul explained that his recovery plan consists of three phases. First, he and his director/co-founder of CryptoZOO Jeff Levine are going to burn their ZOO token holdings so that they have no financial advantage in the game, and the token is supposed to have more value.
Secondly, he claimed that he would personally commit 1,000 ether
As part of a rewards program that enables “disappointed” investors to burn NFTs to win back the initial price of 0.1 ETH ($150) at the mint.
Reaction tweet from CryptoKingBob: Twitter
It should be noted that at the time of Paul’s tweet saying he was setting aside $1.3 million for the bounty program, 1,000 ETH was worth that amount. However, the price of ETH – among a host of other major assets – has since been on a massive pump that has seen its price up 10.2% over the past 24 hours to remain at around $1,548 at the time of writing.
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Finally, Paul notes that the third phase is to “clearly finish the game and present it as described in the white paper,” which was initially described as a game for winning that involves farming NFT animals for ZOO token rewards:
“To say I am disappointed with how this was handled internally is an understatement, there is a full internal investigation going on along with an audit and we will be pursuing full legal action for those who need to be held accountable.”
He added, “If any money is recovered in this process, it will go directly to the community.”
Community reaction to Paul’s Twitter post was mixed, with some throwing hats at Paul’s efforts, while others continued to pile on with more criticism.
Related: NFTs have a brighter future on Instagram than Twitter
Users like tharaxis noted that while criticism of Paul and CryptoZOO was valid, “This all sounds very positive, and while it took some time, this definitely deserves a ‘good job.’ We hope it stays that way.”
While Genius Group founder and CEO Roger Hamilton added: “I’m sorry” and compensated those who lost their money. How cool if all CoffeeZilla investigations ended up this way.”
On the other end of the spectrum, popular NFT and cryptocurrency trader crypto_bitlord7 stated: “But let’s be honest. You didn’t care until it started affecting your reputation.”
Then she threatened to sue. And when I realized that backfired, I started trying to please people. You are as fake as it gets. They wrote for a real Lord.