CNN rug pulls investors and goes away with 80% of the funds

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CNN, the cable network news has recently announced the closure of its vault by CNN project which typically turns stories into NFTs and sold it to people, a way of owning the moment they say, how long before people realize this type of project closure is becoming habitual and a clear fraudulent scheme.

According to the press release from the media house, the “Vault by CNN” is no longer part of the company’s long-term project. CNN said it had ended the Web3 project designed to expand storytelling as part of its drive to embrace innovative technologies to boost media engagement.
The Vault was launched in 2021 as a 6-week-long experiment to ascertain the viability of Web3 in the company’s operations.
CNN unveils Vault as its first marketplace for NFT by “offering collectors the chance to own a part of history.”

From what I know, this project was supposed to monetize what exactly? Reporting? Who was benefiting from this? The buyers of these NFTs or CNN? I think it is clear that there was nothing in it for people to benefit from, it’s only shocking how people would buy into something with no actual utility, nothing more than the media which CNN happens to be a big one marketing something like this into what seems cool.

“Owning a piece of history” sounds almost like owning ancient artifacts, but the twist is this is only text or video coverage perhaps, what other news outlets won’t waste a second to create their own copy of the report, so what were people owning exactly?

You haven’t heard it all, here is the fun part

Investors will get only 20% of the amount they invested, you’re welcome.

Now, where did we see something similar? We’ve suffered a series of rug pulls in this space and projects like luna simply creating a new token and issuing it to investors worth less than the previous cost and the funny thing is that the team gets to earn from this too, while I don’t have reasons to believe the luna storm was intentional, it’s just funny how if so, a team can create a scheme to rob the same audience twice!

Reports indicate that CNN gave no prior notice of its intention to stop the operation of Vault. This is because, as recently as the previous month, the media house is still urging community members on its Discord channel to buy more collections to access important events.
With the upcoming mid-term elections on November 8, CNN has created the “Art of Voting NFT Series,” with collectors needing to own at least a single NFT from among the set to benefit from the key moments.
Moreover, CNN’s advertisement for Vault features a section with utility listings like “Exclusive CNN Perks” and “Exclusive CNN Vault Merch.”

Oh hell no, this is clear off, how else do you want to put this? The continuity in marketing? The proposing of the so-called “utility collection”?

And what more?

CNN disclosed that it plans to reimburse the “collectors who stood with them during the experiment.” Meanwhile, the compensation will depend on the buying price of each NFT in a wallet, as recorded on October 6.
Additionally, the distribution will be either stablecoins or FLOW tokens. CNN noted that it is currently working out the compensation plan details, and the distribution will be roughly 20% of the actual mint price for each NFT in a wallet.[s]

Nigga said roughly? and what again, experiment?

Classic CNN, and to think they will actually get away with this. It seems pretty clear how this is a lazy pull-out caused by the current NFT and cryptocurrency market atmosphere, so in other to save money and actually get away with pre-invested amounts, or at least, most of it, they just decide on folding up.

In what seems to be one of the greatest frauds in this space, a fair reimbursement should have the investors receiving at least 80% of the amount invested, but 20%? that's just unbelievable. Will the SEC go after this? will they be sued to do a more fair distribution of invested amounts?

If not, consider this a loud fraud in this space, and a couple of entities will definitely adopt this model of scamming people. You all stay safe. CNN just gonna sit back and enjoy an 80% cut.

Thank you and please leave a comment, your thoughts matter to me.

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