CNN-min (1)-min

Earlier this week, CNN announced it would shut down its non-fungible token (NFT) project known as “Vault by CNN.” Vault by CNN was released last year as a marketplace for the company’s NFTs.

CNN drops Vault NFT project

When CNN launched this NFT project, it said it would create an opportunity for collectors “to own a piece of history.” The NFTs would include minted CNN reports of notable events.

CNN released the project at a time when cryptocurrency prices were on a bullish rally. Despite the crypto winter affecting crypto prices, CNN is believed to have made over $300,000 from selling these NFTs.

While announcing the project closure on Discord, users expressed their disappointment with the decision, with some accusing the project of conducting a rug pull.

CNN announced that it would be compensating collectors that joined the project. The compensation would depend on the purchase price of NFTs in each wallet by October 6. A CNN staff member, Jason, said that the distribution would be done on FLOW tokens or stablecoins and deposited into the user’s wallet.

CNN plans to reimburse users around 20% of the original mint price of their NFTs. However, this amount does not seem enough for the collectors, as users expected that CNN would have a more robust NFT project because of its high stature in the media industry.

Users have also expressed disappointment in how CNN ended the project abruptly. Last month, the company was still promoting the marketplace and persuading the community to buy additional tokens. The company said that those who buy a certain amount of assets would be given access to the Art of Voting NFT Series event expected to happen on November 8.

Collectors that needed to access the event were required to own at least one NFT from a specific collection. The project also had some “coming soon” features like Exclusive CNN Perks and Exclusive CNN Vault Merch. CNN had even promised users that by the end of the year, they could mint any CNN article into an NFT.

CNN fails to give a reason behind the closure of the platform

CNN has not explained why it was shutting down its foray into the web 3.0 and crypto sector. Nevertheless, NFT volumes have been dwindling recently due to the dropping crypto prices.

It is also not the first time that CNN is abandoning a new project. Despite only launching last year, Vault by CNN has lasted longer than the CNN Plus streaming platform that launched in March before closing a month later.

The official website of the Vault marketplace shows that the most recent transaction happened five days before the announcement of closure. The transaction was done on October 5 after a collector purchased a “CNN Defining Moments” NFT for $77.

On the Discord message, CNN informed the holders of its NFTs that it would burn the unsold NFTs, saying that it would make the existing ones rare. The platform has also thanked those that participated in the “experiment.” Garrett Cowan, a CNN publicist, said that the “experiment” mentioned in the notice referred to an internal test conducted six weeks before the June 2021 launch.

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