Logan Paul, the brother of famous American internet celebrity Jake Paul who recently defeated Tyson, is under scrutiny for allegedly using his own fame to market meme coin Elongate and NFT card game CryptoZoo, and then selling them at a profit after raising their prices, leaving many investors empty-handed. Currently, more than 130 investors have filed a joint lawsuit against Paul, seeking a claim of $4.2 million, but Logan Paul has not directly responded.
Hyping up meme coin Elongate, suspected of buying low and selling high
According to reports, Logan Paul actively promoted several high-risk meme coins in 2021 using his own fame, including one called “Elongate.” He was accused of using anonymous wallets to engage in “buying low and selling high” and profited up to $120,000 from it. As an example, Paul once posted claiming, “Elongate made me rich!” and shortly after, the coin’s price skyrocketed by 6,000%. However, it quickly crashed within a few hours.
Logan Paul promoting Elongate on social media
Trading records showed that an anonymous wallet related to Paul bought Elongate before he made the post, and quickly sold it at its peak price, raising questions about whether Paul used the trust of his fans to manipulate the coin’s price for his own profit. Currently, Paul has not directly responded to the accusations from the media but denied any wrongdoing through his lawyer, once again drawing attention to the “marketing issues of celebrities in the cryptocurrency market.”
NFT card game CryptoZoo collapses, players seek $4.2 million in compensation
CryptoZoo is an NFT card trading game launched by Paul, which amassed a total of $185 million. Players need to purchase Zoo Tokens, a cryptocurrency, to buy “NFT eggs” that can hatch virtual animals and further generate “hybrid animals” for profit.
However, after the launch of CryptoZoo, problems arose as the functionalities did not meet the initial promises, resulting in a rapid collapse of Zoo Token and NFT prices. Some players expressed that they spent over $40,000 on CryptoZoo, trusting Paul, but ended up empty-handed.
Currently, more than 130 investors have filed a lawsuit against Paul, seeking a claim of approximately $4.2 million. They accuse Paul and his team of “secretly selling” Zoo Tokens, buying them quietly when the prices were low, and planning to make a profit by selling them when the price reached $200 million. Lawyers pointed out that such behavior would constitute insider trading if it occurred in a publicly traded company.
Logan Paul facing a joint lawsuit from players
Previous denials and the introduction of a compensation plan
In the face of criticism and accusations, Paul has repeatedly denied any wrongdoing and shifted the blame onto 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 file lawsuits against him. Additionally, Paul has filed lawsuits in the United States against other internet celebrities who criticized him, citing defamation as the reason.
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