Multimedia company CNN has announced that it will shut down its non-fungible token (NFT) collection after four months of operation. The notice was posted via Twitter and the project’s Discord channel, sparking a wave of angst among community members.
News from us to share pic.twitter.com/qcxaDXNRYO
— Vault by CNN (@vaultbycnn) October 10, 2022
Titled “Vault by CNN: Moments That Changed Us,” the collection launched in June and featured symbolization of historic moments in the news network’s 41-year history. The digital collectibles hit the Flow network and immortalized moments from the US presidential election and world events like the moon landing, among others.
The team’s statement noted that Vault was originally meant to be a six-week experiment by the media team, and initial engagement has been positive and urged the team to expand the project to full launch. However, four months later, the initial enthusiasm seems to have petered out and forced the team’s hand to pull back the curtain on the project.
“While we no longer develop or maintain this community, the Vault NFT Collection will live on,” the statement read, emphasizing the immutability of decentralized ledger technology. Users should receive 20% of the original price of the digital collectible within the next few days.
“Distribution will either be FLOW tokens or stablecoins deposited into each collector’s wallet. We are currently working out the details, but we expect the distribution amount to be around 20% of the original price for each Vault NFT held,” Discord staff member Jason said.
Users cry foul because of the fall of the curtains
Vault users have complained about the discrepancy in the asking price of collectibles on the market, as many of them were minted for around $10. Others called the event a coin toss in hopes that investors would break even.
“Is CNN able to share why they think 20% is fair because to me that implies they hopefully think we can break even or turn a profit within a few years, right? Otherwise it looks like a carpet pool,” said Richard Razo, holder of digital collectibles.
NFTs have come under pressure lately with lower than normal trading volumes in contrast to the blistering numbers of 2021. A series of market hacks and popular collectibles have threatened to tarnish the shine of NFTs in 2022.
Meanwhile, the Securities and Exchanges Commission (SEC) has opened investigations into the activities of Yuga Labs, creators of the Bored Ape Yacht Club, on the grounds that NFTs may pass as securities and fall under securities law. movables.
Watch: BSV Global Blockchain Convention Presentation, Buzzmint: Elevating NFTs
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