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CNN shuts down its NFT collection barely 4 months after launch

Multimedia outfit CNN has announced that it will shut down its non-fungible token (NFT) collection after four months of operation. The notice was released via Twitter and the project’s Discord channel, sparking a wave of angst among community members.

Titled “Vault by CNN: Moments That Changed Us,” the collection was launched in June and featured the tokenization of historic moments in the news network’s 41-year history. The digital collectibles were minted on the Flow network and immortalized moments from U.S. presidential elections and world events like the moon landing, among others.

The statement by the team noted that Vault was originally meant to be a six-week experiment by the media outfit, and the initial engagement was positive and urged the team to expand the project to full launch. However, four months later, the initial enthusiasm appears to have petered out and forced the hand of the team to draw the curtain on the project.

“While we will no longer be developing or maintaining this community, the Vault NFT collection will live on,” read the statement, pointing to the immutability of decentralized ledger technology. Users are expected to receive 20% of the original mint price of the digital collectible in the coming days.

“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,” said Jason, a staff member on Discord.

Users cry foul over the falling of the curtains

Users of Vault have decried the discrepancy in the asking price of the collectibles in the marketplace, as many of them were minted for around $10. Others have tagged the event as a rug pull with the hopes of investors breaking even looking bleak.

“Is CNN able to share why they think 20% is fair because, to me, that implies they hopefully think we can break even or make profits within a few years, right? If not, then this seems like a rug pool,” said RichardRazo, a holder of the digital collectibles.

NFTs have come under pressure lately with the sub-par transaction volumes in contrast with the meteoric figures of 2021. A series of hacks of popular marketplaces and collectibles have threatened to dim 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 the NFTs can pass as securities and fall under the ambit of securities law.

Watch: The BSV Global Blockchain Convention presentation, Buzzmint: Elevating NFTs

New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.

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