The founder of NeoNexus, a Solana-based NFT project, said the team wasn’t developing the project and blamed the decision on the fall in Solana (SOL) prices.
The project’s founder, Jack Shi, used NeoNexus’ official Twitter account to tweet to the community at 2:00 pm (UTC) on March 21 that he wasn’t continuing “healthy development” of the project. I added that I wanted to hand it over. Develop.
From the bottom of my heart, I must inform you that the NEONEXUS project is no longer able to continue its healthy development. We would like to hand over the project to our community, or, if possible / possible, a party for acquisitions of our choice.
I’m very sorry,
— Neonexus_world (@neonexus_world) March 21, 2022
Estimate suggestion The project has raised approximately 25,000 SOL for the NFT Mint. It’s worth $ 2.2 million at today’s price. The project could have earned an estimated $ 3.5 million to $ 4.5 million as the price of SOL rose above $ 150 around the time of Token Mint.
NeoNexus is a Metaverse project with both planned utilities and governance coins. sold out Over 4,000 “property NFTs”. The project will provide an additional 6,000 property NFTs, with character, vehicle, and accessory tokens planned for the future. The project currently has over 13,000 members on the Discord channel.
In a project post discordShi writes that the project’s funds are being used to pay wages, technical infrastructure, operating costs and taxes, and market conditions are due to the team’s suspension of development.
“It was very difficult to grow and continue the project in this ecosystem and market conditions, where the price of SOL fell sharply and the activity, volume and interest of the entire Solana NFT space declined.”
Above market conditions The past few months have been choppyAccording to data from, SOL prices have fallen by more than 50% in 3 months CoinGecko.. It reached a 90-day high of just over $ 200 in late December and has been steadily declining since then, trading at around $ 80.
Shi added that more than 20 staff members of parent company Unlock Defi had been laid off as of the end of March and asked if the community could be acquired.
Many comment providers Commit “slow lag”Build the project just to finish and receive the funds in a few months.
Damn it’s a huge slow rug
— Keizer166 (@KeizerNFT) March 21, 2022
Zachxbt, a researcher and writer of pseudonym crypto fraud, shared a screenshot of a tweet made by Shi in November and boasts that the founder is sitting in a supercar and riding a Lamborghini. Zachxbt used these images to question how the project could raise millions of dollars just by running out of money in a few months.
So, did this project raise $ 4 million from multiple NFT drops and somehow run out of money just a few months later?
— Zachxbt (@zachxbt) March 21, 2022
Various NFT projects have promoted their own products in responding to NeoNexus tweets to mitigate the losses that some investors may have suffered from the announcement. Many have provided a whitelist of upcoming mint to those who answered “NEONEXUS” on their respective Discord channels.
At the time of this writing, both the NeoNexus project and the Unlock Defi website were offline. Cointelegraph asked Shi and a former employee for comment, but did not receive an immediate reply.