NFT project shuts down with Solana failure as excuse: ‘We’re out of funds’

The creators of NeoNexus, a Solana-based non-fungible token (NFT) project, announced on Monday (21) that they will cease all operations starting this week. One of the reasons for this is the drop in the price of SOL.

NeoNexus lead developer Jack Shi mentioned this impact on the project in his farewell letter shared with the Discord community:

“In this ecosystem and market conditions, trying to grow and continue our project is very difficult, as the price of SOL has dropped significantly and activity, volume and interest in Solana’s NFT space has dropped.”

While Solana is worth less than half of its record price last November, when it hit $259, CoinGecko’s latest chart isn’t as negative as the developers suggest.

Currently, SOL is trading at $92, which translates to a 14% weekly appreciation quote. Even on the monthly chart, with simpler gains of around 1.1%, the cryptocurrency remains in the green.

Shi added in his notes that he recently tried to raise capital to keep the company afloat. It didn’t work out, and the remaining cash funds were all used to pay the salaries of more than 20 employees, in addition to development and technical fees, legal fees, accounting fees and trade taxes.

The developer said he decided to shut down operations and lay off all employees by the end of the month because he didn’t have enough money to continue operations. The idea now is to deliver NeoNexus to the community or a participant of the community’s own choice for acquisition.

“We still believe in the potential of NeoNexus and hope that the community will take it and turn it into something we cannot. make things worse.”

NeoNexus was born with the ambition to be a cyberpunk metaverse on Solana, powered by NFTs. During its few months of existence, the project has created 4,000 NFTs that belong to this metaverse, such as residential, commercial, industrial, and public lands.

https://twitter.com/neonexus_world/status/1504550989314998277

Community points to alleged rug pulling

Investors who put their money into NeoNexus’ NFT, believing the project has the potential to succeed, were outraged by the decision and accused Jack Shi of applying a blanket pull.

In this type of scam, developers sell projects as legitimate, but after cashing in, they disappear from the map, leaving other investors overwhelmed.

On Twitter, the community tried to estimate how much money NeoNexus raised by selling NFTs. For example, user @Mexicancik1, statement This item earns at least 25,000 Sol from collectible sales.

According to him, 4,000 virtual lands received 10,000 SOL at 2.5 SOL each, and another 15,000 “golden tickets” were sold at 1 SOL each.

According to investors, the sales occurred between December and January, when SOL was worth more than $150 and brought the project an estimated profit of $3.7 million.

“They charge an additional 5% royalties on the volume of 36k SOL. Also made +1800 SOL profit from there”, Add to User @Crypt0xG.

“Better give some SOL back to the community, otherwise it will be a blatant theft,” wrote the user who made the estimate. So far, the NeoNexus team has not given any indication that users will be compensated in any way.

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