Has CNN pulled off the highest profile NFT rag pool yet?
Media broadcasting giant CNN is exiting the NFT space and closing its Vault NFT marketplace. The statement yesterday afternoon confirmed the plan, a major shock to investors in the project. In fact, some have accused CNN of conducting a tug-of-war. Last month CNN was encouraging its community to buy additional tokens for an upcoming ‘Art of Voting’ NFT series, due to launch on November 8th.
The CNN NFT project is coming to an end
CNN created the marketplace to allow their community to collect digital pieces of history, similar to how NBA Top Shot NFTs work. For example, NFTs will include news reports on the mint and artistic interpretations of historical world moments. Notably, the media giant launched Vault by CNN At the height of the NFT boom in the summer of 2021.
The CNN NFT Marketplace is officially closed for trading but will remain open to allow users to view their NFT collections.
The community behind the project is furious at the news, with some suggesting it’s a ‘rag pool light’, especially considering how vocal they’ve been about the project until recently. The team has promised a full range of events and features for 2022/2023 on its roadmap.
In April, the Press Gazette reported that thanks to its Web3 project, CNN earned more than $300,000.
Is compensation offered but is it enough?
CNN plans to compensate NFT collectors on its platform. Refunds will work based on a snapshot taken of the wallet on October 6 A CNN staffer named Jason said, “The distribution will either flow tokens or stablecoins deposited into each collector’s wallet. We are currently working out the details, but expect the distribution amount for each Vault NFT owned to be around 20% of the original mint price.
Interestingly, the snapshot will not consider the NFT purchase price. Because of this, the snapshot taken on October 6 will be substantially different from most actual purchase prices
No doubt, some NFT holders will get back only a fraction of their initial funds. For now, this is what CNN is offering its loyal NFT community
Finally, with global companies joining the Web3 space every day, it’s surprising to see CNN leave.
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