CNN shuts NFT, Web3 project: Accused of rug pull

Lavina Daryanani
Source: Forbes

Cable news network CNN has bid adieu to its Web3 and NFT experiment, Vault. Announcing the same, the official statement on Twitter read,

“We have decided that it’s time to say goodbye to Vault by CNN.

Vault by CNN was created last year and typically offered buyers NFTs that commemorated major news events. Post the announcement, people from the space did not hesitate from adding tags like bizarre to its market.

Elaborating on the journey, the statement noted,

“Vault was originally launched as a six-week experiment, but the support and engagement from our community let us expand this project into something much larger.”

Rug-pull accusations against CNN pour in

At the time of the launch, the news cable network had chalked out its intention to expand and had given word to users about future airdrops. It had stated at that time,

Users can expect future drops of Moments to include an even wider range of digital collectible topics and formats as Vault by CNN grows and adapts to its community of collectors.

Post the abrupt closure announcement, the community expressed their shock. A few users blatantly called it a rug pull, while others agreed to it.

Under the official announcement, a particular user tweeted,

Even CNN learns how to rugpull its investors. Good job CNN!

In fact, there was another user who sarcastically went on to ask the news cable agency to mint their announcement news as NFTs and give it to every CNN user. CNN intends to compensate users who bought NFTs. The collections will live on and the marketplace will continue to remain active. Clarifying the same, the official statement noted,

“While we will no longer be developing or maintaining this community, the Vault NFT Collection will live on.”

With respect to the compensation, CNN staffer “Jason” said on Discord,

“The distribution will be either FLOW tokens or stablecoins deposited into each collector’s wallet. We are currently working out the details, but expect the distribution amount to be roughly 20% of the original mint price for each Vault NFT owned.”