CNN Accused of ‘Rug Pull’ Exercise as It Abandons Nft Project

CNN Accused of ‘Rug Pull’ Exercise as It Abandons Nft Project

On Monday this week, CNN made the official announcement that it will no longer be undertaking any projects or forays in the world of Web3. The "Vault" team wrote via a Tweet, "That it's time to say goodbye to Vault by CNN."

Vault by CBB was launched in 2021 to serve as a dedicated marketplace for its line of NFTs. Its goal was to give collectors the opportunity to acquire an item from a  piece of journalistic history. Similar to other collections, Vault's NFTs were created to showcase special events and creative interpretations throughout CNN's history.

While this made a lot of sense during a more febrile time in crypto history, the "crypto winter" set in and brought with it a fear of taking risks. The Press Gazette claims that CNN's sales, which brought in just over $300,000, were small compared to those of other companies in the crypto world

Owners/users were informed via the company's Discord channel that although Vault will change, users will still be able to showcase their collections and use the marketplace. That said, however, its community was less than happy to hear the news.

According to those inside the group, they felt shocked, let down, and even angry, accusing CNN of pulling a "rug pull" and leaving them financially out of pocket. Even though CNN stated that it would compensate collectors, users have continued to say that they would be contacting lawyers.

Despite the fact that compensation was provided and that its services would still be available, what rang as foul play was how CNN was hawking the platform to both new and existing members to purchase its tokens as recently as September. For instance, it recently offered tokens for events like the Art of Voting series, which was slated to run in conjunction with the November midterm elections.