The crypto world wants to know if Logan Paul’s CryptoZoo is a scam. There is no light at the end of the tunnel, and all answers point to the project being a scam.
Logan Paul and a team of developers introduced the CryptoZoo concept to several investors, resulting in millions of dollars being stolen from fans. After many invested in the ZOO NFTs, the project did not materialize, which has led to people painting CryptoZoo as a scam.
The founder of CryptoZoo, his manager, and Paul’s assistant Danielle Strobel are facing a class action lawsuit. After Coffeezilla called him out, Logan promised to refund people who invested in the NFT project. However, he has not refunded anyone, further backing up the fraud claims.
How did the scam start?
CryptoZoo is Logan Paul’s own NFT project. He and some associates like Jeff Levin and Eddie Ibanez launched it in 2021. The project was called a “really fun game that makes you money.” According to the project, users must purchase egg NFTs and hatch them to get various animals. With every animal you breed, you will be awarded ZOO tokens.
However, after investing in the project, many investors discovered that the project was a scam as the game didn’t materialize. There was little controversy surrounding the topic until famous YouTube scam investigator Coffeezilla started a series about the crypto project. The YouTube journalist brought to light many issues surrounding the project.
People call CryptoZoo a scam mainly because the founders made millions from the project but never got the game to work. Coffeezilla tags CryptoZoo as Logan Paul’s “biggest scam.” The founders put out the project as a way for investors to make passive income. However, after spending money on the project, it failed to yield results.
The project’s founder is under a lawsuit for executing a rug pull. According to the court, the defendants promoted CryptoZoo’s products to consumers unfamiliar with digital currencies. Many believe the defendants manipulated their consumers into investing in a non-functional game.
Typically, individuals are supposed to get a daily yield of ZOO coins by breeding NFT animals. However, the promised daily profit was a bust, and the founders retained all the money earned.
Let’s take a deeper look at what exactly went wrong with CryptoZoo, and what are the latest updates on the project?
Is Crypto Zoo a Scam? What are the Latest Updates?
Since its launch, the CryptoZoo project has not been successful. Many issues surround the blockchain game, such as technical glitches and rug pull controversies.
Is CryptoZoo A Scam?
According to people who invested in the project (from $500-$500,000), the project is a scam as there is no daily yield to receive. Several individuals from Paul’s online platforms invested money into the project because of his influence. At the end of the day, all their money was lost when the NFT game system failed to work.
Since the project received significant money, the owners had no excuse for the game not producing daily yield. This is why many believe CryptoZoo is a scam. The CryptoZoo founders have done nothing to rectify the problem and fix the situation, which also fuels the claims of a rug pull.
Latest Updates On CryptoZoo
In early 2023, Logan Paul released an apology video stating that he put his trust in “bad actors.” Generating headlines in the online ecosystem, Paul distanced himself from some of his starting partners. He stated that he would refund some money to investors. At a point in CryptoZoo’s development, Jeff Levin fired Eddie Ibanez for not paying developers.
Even after Eddie was fired, Jeff Levin still needed to pay more attention to the development team, which is one of the main reasons for the project’s failure. Jake Greenbaum, also known as Crypto King, was actively involved in CryptoZoo, selling most tokens. In some picture evidence from Coffeezilla, Crypto King accused Logan Paul of stealing $40 million from him in tokens.
Logan Paul’s associates Danielle Strobel, Eduardo Ibanez, Jeffrey Levin, and the youtube influencer face a lawsuit in the western district of Texas. The defendants promoted CryptoZoo’s products without fulfilling their end of the deal. The proposed class action lawsuit started after the youtube star claimed partial responsibility for the failure of an apology video.
Has Logan Paul Refunded CryptoZoo NFT Buyers?
The answer is no. Despite coming out to claim responsibility and promising to refund investors for their loss, the founders of CryptoZoo have yet to make any moves to fulfill their end of the deal. The CryptoZoo founder claimed he would release $1.8 million in refunds to tens of thousands of investors who lost money to the project.
However, some months after making the promise, many individuals still need to see a refund from the company. This has led many not to believe the founders’ words and believe it’s a scam. Many people who invested money into CryptoZoo feel the project is a rug-pull operation after so many promises have yet to be fulfilled.
On the 29th of June 2023, popular internet detective Coffeezilla called out Logan in a tweet stating that the YouTube star had refunded $0 of the promised $1.8 million.
Paul also promised to refund holders the price they paid to buy their base egg or animal NFT. He offered a refund of 0.1 ETH per egg or animal. Logan stated in his apology video that all deserving parties would be refunded. However, months have passed since the video, and it is still to be seen whether or not the money will be refunded.
The developers working on the project also had a lot to say on the topic. The founders of CryptoZoo promised to pay the developers $1 million for the project. Zach Kelling also claims that Ibanez pledged 5% of the tokens to the developers after the job was done. However, nothing was paid.
Did Logan Paul and Jeffrey Levin Burn any ZOO Tokens?
Logan Paul released a “three-step” video explaining how he would burn his and Jeff Levin’s ZOO tokens. That means they would move all their ZOO tokens to a burning wallet and destroy them. The CryptoZoo founder said this to convince investors that he and his managers won’t earn profit from the ZOO tokens.
However, after closely looking at the official ZOO token contract, there is no evidence to support the founder’s claim. A website that details the tokenomics of the project identifies one of the burn wallets controlled by the project. However, the wallet has been inactive for a very long time. This indicates that the founders likely still need to burn their ZOO tokens.
Also, according to BSC Scan data, no wallet address has burnt any significant ZOO tokens since Logan made the statement. However, this doesn’t mean that no ZOO hasn’t been burnt during the period. Some accounts steadily burn ZOO, but not in any significant amount.
Out of all the recorded ZOO burn transactions, none exceeds five million ZOO. Due to this, it is safe to believe that Logan Paul and his manager have still not burnt their ZOO. It must be made clear whether all burn wallets Logan controls are identified. However, it seems like the youtube star still needs to fulfill his promise.
How Much Did Logan Paul Make on CryptoZoo?
According to Cofeezilla’s research, Jake made up to $6m from the project, which he openly admitted. Eddie Ibanez also reportedly made around $1.7 million from CryptoZoo. The ETH derived from selling egg NFTs entered two anonymous wallets, which amounts to about $1.36 million. Jake Greenbaum and other associates also earned a lot from CryptoZoo.
Jeff Levin and Logan Paul bought $100,000 worth of tokens when the project was about to launch that remains untouched. If the defendants are victorious in the lawsuit, a lot of money awaits them afterward.
Even though the market for Zoo tokens has plummeted, Logan Paul and other associates have made a substantial amount of money from the project. Paul and his manager have enough tokens stored to make them millionaires. However, since they have yet to sell the tokens, there’s no way to decide how much exactly Paul has made from CryptoZoo NFTs.
CryptoZoo is a project launched in 2021 by Logan Paul and some associates. The project was developed as a fun game you can play to earn money. However, expectations are sometimes far from reality. The founders of CryptoZoo promised a platform where people could earn passive income. Still, they should have followed up on their end of the bargain, leading many to believe it was a scam.
The founder of CryptoZoo and his associates face a class action lawsuit stating that the defendants marketed CryptoZoo NFTs to individuals who don’t know much about the digital currency market. Paul promised to refund investors in an apology video early in 2023. However, he has not fulfilled this promise either.
There is no exact estimate for how much people lost altogether. However, according to Coffezilla, some investors lost up to $500,000 from CryptoZoo.
The project's founder claimed he spent about $1 million developing CryptoZoo.
Logan Paul is a vlogger, actor, movie director, and professional wrestler.
CryptoZoo does not work the way the developers intended. There is still work to be done on the project.