The famed news network is shutting down its experimental NFT marketplace. However, some users have complained, accusing CNN of an NFT rug pull.
At a certain point last year, everyone was hopping on the NFT hype train. Athletes, celebrities, entire companies – everyone was trying to get a piece of the non-fungible token pie. Even CNN got in on the action.
CNN’s Vault was one of the first major media outlets to enter the world of NFTs. The marketplace allowed users to buy, sell, and trade a variety of CNN-branded NFTs. However, the site is now shutting down. And the move has left some users feeling cheated.
What’s CNN’s Vault?
In the crypto community, CNN’s Vault project has recently generated controversy. Launched in 2021 as a short-termed experiment, Vault is a non-fungible token (NFT) marketplace highlighting major moments from CNN’s history.
From Nelson Mandela’s prison release to Barck Obama’s election, CNN has been there to document some of the world’s most important events. And now, those moments can be yours – for a price.
The company says that while initially intended as a short-term experiment, Vault’s success over the past year has convinced them to move on. Despite support from the community, however, it appears that CNN will be closing down the platform.
Why Are They Shutting It Down?
In an official statement on Twitter, CNN said that the company had learned much from its first foray into Web3. Furthermore, while CNN is working on similar concepts around community storytelling, it won’t develop or maintain the Vault any longer.
The entire Vault collection will stay online, but the marketplace will close to new purchases.
The reason for shutting the Vault down? It’s not entirely clear. Nothing was explained in the official statement, and since the marketplace was on track to earn $1 billion in profit this year, low sales don’t seem to be an issue.
A lack of clear reasoning has led some in the crypto community to cry foul, accusing CNN of an NFT rug pull.
Was This Really a Rug Pull?
These accusations are quite serious. The fact is that the move came out of nowhere. If you visit the Vault’s official website, you can still find a 2022 roadmap, which promises everything from a new photography NFT series to exclusive perks for Vault collectors.
Some in the community are accusing CNN of pulling a “rug pull,” however, arguing that this abrupt closure suggests shady motives on the part of the news organization.
A “rug pull” is an exit scam in the crypto world whereby a project suddenly shuts down and disappears, taking all the invested money with it. Many people are already asking for their money back, but it’s unclear if CNN will offer full refunds.
The Fallout From the CNN Vault
CNN has encouraged users to head to its Discord channel to learn more about what shuttering its platform means for collectors and investors. But even that didn’t quell the anger of some in the community.
An admin named Jason said in one of the channels that the users will be offered stablecoins valued at approximately 20% of the original mint price for each Vault NFT. The statement hasn’t gone particularly well.
CNN still hasn’t commented on the accusations of a rug pull. Only time will tell what really happened with the CNN Vault – but for now, it looks like the experiment has come to an abrupt and controversial end.