The well-known American internet celebrity Jake Paul, who recently defeated Tyson, is the brother of Logan Paul. Logan Paul has been accused of using his own fame to market the meme coin Elongate and the Non-Fungible Token (NFT) card game CryptoZoo, with concerns that he may have inflated the prices and then sold them to make a large profit, leaving many investors with heavy losses. Currently, over 130 investors have jointly sued Paul and are seeking $4.2 million in compensation, but Logan Paul has not directly responded.
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ToggleHyping the Meme Coin Elongate, Suspected of Low Buy High Sell
According to reports, in 2021, Logan Paul actively promoted several high-risk meme coins using his own fame, including the meme coin "Elongate", and was accused of using anonymous wallets to engage in "low buy high sell" tactics, earning as much as $120,000. Using "Elongate" as an example, Paul once posted that "Elongate made me a fortune!", and the coin price immediately skyrocketed by 6,000%, but it crashed just a few hours later.
The transaction records show that an anonymous wallet associated with Paul bought Elongate before his post, and quickly sold it at the price peak to profit, raising concerns that Paul may have used his fans' trust to inflate the coin price for his own gain. Currently, faced with media accusations, Paul has not directly responded, but has denied any wrongdoing through his lawyer, once again focusing attention on the "marketing issues of celebrities in the cryptocurrency market."
The CryptoZoo NFT Card Game Crashed, Players Lost Everything and Demand $4.2 Million in Compensation
CryptoZoo is an NFT card trading game launched by Paul, which raised a total of $185 million. Players need to purchase the cryptocurrency Zoo Token to buy "NFT eggs", which can hatch "virtual animals", and then further generate "hybrid animals" to earn profits.
However, after the launch of CryptoZoo, problems kept arising, and the functions did not live up to the initial promises, leading to a rapid collapse of the Zoo Token and NFT prices. Some players said that due to their trust in Paul, they had spent more than $40,000 on CryptoZoo, but ultimately lost everything.
Currently, more than 130 investors have sued Paul and are seeking about $4.2 million in compensation. They accuse Paul and his team of "private sales" of Zoo Token, quietly buying in when the price was low, and planning to cash out when the price reached $200 million. Lawyers point out that if this happened in a publicly traded company, it would already constitute insider trading.
Previously Denied Multiple Times, Now Launched a Repayment Plan
Faced with criticism and accusations, Paul has denied any wrongdoing multiple times, and shifted the responsibility to other team members. Previously, Paul announced a compensation plan, promising to refund a portion of the funds invested by players who purchased NFT eggs, on the condition that they do not sue him again. In addition, Paul has also sued the internet celebrities who criticized him for defamation.
(NBA star Shaquille O'Neal pays $11 million, unable to bear Astrals NFT and FTX lawsuits)
