CNN Ends its Web3 Experiment
- CNN ventured into the NFT marketplace in 2021 following the launch of the Vault project.
- It remains unclear how much the broadcaster made from the project.
- CNN most likely decided to shut down the project due to a decline in NFT prices and popularity.
International news platform CNN has announced the end of its non-fungible token (NFT) marketplace, which it launched last summer. The broadcaster’s decision to shut down the service has led to claims of a rug pull. In a statement posted on Twitter, Vault by CNN said it has decided to “say goodbye,” adding that the platform was originally launched as a six-week experiment.
The statement read,
Vault was originally launched as a six-week experiment, but the support and engagement from our community let us expand this project into something much larger.
The announcement offered no reason for the decision but noted that CNN would no longer be responsible for the community. The release stated that, despite the project’s cancellation, CNN would continue to use the idea of community storytelling in future projects in light of the lessons it had learned from its first journey into Web 3.
CNN’s Vault, which was introduced in June 2021, featured “Moments” from the network’s television archives that were minted and sold as NFTs. The owners of these Moments NFTs would receive a digital copy to keep and display on their own user pages on the platform.
CNN to Compensate Users
The decision to end the Vault was not received warmly. According to chats from the project’s Discord channel, users were shocked by the announcement. CNN noted that it intends to compensate collectors with distributions based on the purchase price of each wallet’s NFTs as of October 6. A CNN employee, identified as Jason on the Discord, fielded questions from the disappointed community. Explaining the compensation process, he wrote,
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.
However, other community members claimed they would contact their attorneys, accusing CNN of performing a “rug pull.” Some cited that the project had teased the community with upcoming features and a drop as recently as September.
CNN most likely made the choice in light of the fact that the market for NFTs has shrunk significantly over the past year, along with the sharp decline in crypto prices.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
