CNN Shutting Down Vault Project, Community Suspicious “Rug Pull”

Collectors who acquired NFTs from Vault by CNN were left high and dry when the news broadcaster abruptly chose to discontinue the initiative.

CNN stated that Vault began as a six-week experiment, which some in the community claimed was news to them, but that community support and involvement allowed it to grow into something more. It will, however, no longer cultivate or sustain that community.

Developers also stated that the NFTs would remain in the hands of anyone who purchased them and that the website would remain accessible for usage as a marketplace, allowing collections to be browsed. Furthermore, unsold NFTs will be burnt, making the remaining rarer.

Despite promises, collectors on their Discord server expressed their dissatisfaction. Many were concerned that they would not receive their money back and accused CNN of committing a “rug pull,” a circumstance in which investors or collectors are caught off guard when a project is abruptly abandoned by developers, leaving them with nothing.

The project’s strategy includes additional features such as unique incentives and collector events through the end of Q4 2022.

Vault by CNN debuted in the summer of 2021 as a marketplace offering NFT copies of the news organization’s reporting on significant events like space shuttle launches and presidential elections. It also sells artwork influenced by current events.

In April, Press Gazette reported that Vault by CNN generated $324,000 from the 28 highest-priced NFT runs on the market before fees, however, CNN declined to comment on its financials.

Collectors will receive part of that cash back, but not enough to put a stop to the discussion of legal action in the Discord community. Jason, a Discord moderator and main team member of Vault by CNN, verified that a partial refund will be provided in FLOW tokens or Stablecoins. He said:

“We are currently working out the details, but expect the distribution amount to be roughly 20% of the original mint price for each Vault NFT owned.”

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