CNN Gets Accused Of NFT Rugpull

October 12, 2022 11:45 pm Comments

The crypto winter wasn’t too kind to CNN…

CNN has officially ended its Web3 NFT project but those who invested in the project are claiming CNN rug pulled them.

In 2021 CNN launched the “Vault” which was an NFT marketplace that would offer the public pieces of news history as a non-fungible token.

Those who spent hundreds and thousands of dollars to collect CNN’s NFTs are furious and have gone on public platforms such as Discord to let their frustration of CNN be brought to light.


The Verge had these details to report:

On Monday afternoon, as pointed out by Parker Molloy, CNN ended its big Web3 project by announcing, “we have decided that it’s time to say goodbye to the Vault by CNN.”

You may have already forgotten about it, but Vault by CNN launched in the summer of 2021 as a marketplace for its own NFTs (non-fungible tokens) that would “offer collectors the opportunity to own a piece of history.” Sort of like NBA Top Shot except for media nerds instead of basketball nerds, it minted CNN reports of key events or artistic interpretations inspired by them, creating digital collectibles that owners could show off somehow or trade with others, like baseball cards. This idea apparently seemed more reasonable while cryptocurrency prices were sky-high, and headlines about NFTs didn’t include phrases like “trading volumes collapse 97 percent since January peak.”

Things have obviously changed as the “crypto winter” settled in, although an April report by the Press Gazette said CNN had pulled in more than $300,000 from the sales.

In a Discord channel for the service, another message informed owners that while the Vault website will “undergo changes,” it will remain available for them to view their collections and use its marketplace. Reactions from the community included shock, disappointment, and a few posters saying they planned to contact their lawyers while accusing CNN of a “rug pull,” which in crypto terms applies when a development team unexpectedly yanks support — and funds — from a project, leaving the people who bought in with nothing.

Decrypt had more information to add:

Cable news network CNN has pulled the plug on its web3 experiment, the company confirmed in a statement on Monday evening.

In a statement shared on Twitter, Vault by CNN said the decision had been taken to “say goodbye” to the project.

No specific reason was given for the move.

Vault by CNN was created last year and offered buyers non-fungible tokens (NFTs) that commemorated major news events.

“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,” the Vault team said in the statement.

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