NeoNexus, a popular NFT venture on the Solana blockchain, has announced it is winding up operations amid rumors of the project becoming a rug pull.
In a tweet final Monday, the founder explained the NeoNexus ecosystem will not be ready to go on the healthier improvement of the undertaking. The tweet claimed that they will hand around the operations to the local community, or a “community-selected bash for takeover if which is feasible/achievable.”
The Collapse of Neonexus
NeoNexus rose to stardom previously this yr. The NFT undertaking raised virtually $2 million in SOL at latest costs. In the course of that time, the lifted 25,000 SOL amounted to all-around $4 million. Their “Cyberpunk Metropolis in the Metaverse” appeared to be one particular of the most promising projects on the Solana blockchain.
However, it would seem matters swiftly fell aside with NeoNexus. The founder, Jack Shi, cited several motives for the dire problem by Discord. Very first, he said the reduce in “the action, quantity, and fascination in the entirety of the Solana NFT space” triggered the troubles faced by the venture. In addition, Shi reported that depleting resources also is a large aspect for NeoNexus dissolution.
He informed the project’s followers on Discord that they will lay off the project’s staff composed of additional than 20 people. Shi additional there are no foreseeable signifies of boosting revenue for the project.
Feasible Lawsuit for the NFT Job
The announcement garnered a lot of furious reactions from the project’s ecosystem with a lot of alleging a rug pull. Some circles are reportedly speaking about authorized motion with a prospective course-motion lawsuit.
Twitter user @zachxbt replied to the announcement and mentioned: “So this venture elevated $4 million from a number of NFT drops and by some means ran out of resources immediately after just a handful of months?”
Rug pulls have induced the spoil of a lot of NFT assignments lately. Past month, Pixelmon and Blockverse also faced rugpull allegations.