The popular news channel Cable News Network (CNN) is under fire for abandoning its much-hyped NFT project Vault with the community accusing the network of a ‘rug pull.’
The Vault team stated, “Vault was originally launched as a six-week experiment, but the support and engagement from our community let us expand this project into something much larger.”
After examining CNN’s tweets, Discord broadcasts, and press releases, there is no mention of the initiative as an “experiment” prior to the announcement regarding the Vault’s closure.
The most recent transaction before the news broke five days ago, on October 5, when someone purchased a “CNN Defining Moments” token for $77, honoring Nelson Mandela’s release from jail.
In the summer of 2021, Vault by CNN opened as a marketplace for its own NFTs. It created digital collectibles that owners could display or exchange with others, based on CNN reports of significant events or artistic interpretations inspired by them. As a result, CNN made more than $300,000 from the sales.
Another message in the service’s Discord channel reminded users that, although “undergoing changes”, the Vault website would still be accessible to them so they could browse their collections and use its marketplace. Community members expressed dismay saying that they intend to contact their attorneys while condemning CNN for conducting a “rug pull”.
CNN stated that it intended to make reimbursements based on the purchase price of each wallet’s NFTs as recorded on October 6th in order to reward the collectors who joined them in this “experiment”.
The payout will be made up of either FLOW tokens or stablecoins transferred into each collector’s wallet, according to a message from CNN staffer “Jason”.
Additionally, he pointed out that because the real media for the NFTs is kept in IPFS, a distributed file system, they should remain accessible even if CNN’s website is shut down.
Last month, CNN continued to urge community members to purchase additional tokens so they would have enough access to upcoming events like the Art of Voting NFT Series, which will be released on November 8th, the day of the midterm elections.
Even after all this, CNN shut down the Vault project without giving any valid reason, thus appearing as untrustworthy to millions in the community.
Many of the community members ponder if the crypto and NFT bear market made CNN take such a rash decision. Even if it is the reason, the lack of planning and explanation from such a big network does seem distasteful.
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