The founding father of NeoNexus, a Solana-based NFT challenge, has acknowledged the staff is not growing the challenge, blaming the drop in Solana (SOL) costs for the choice.
The challenge‘s founder, Jack Shi, took to the official Twitter account for NeoNexus, tweeting at 2:00 pm UTC on Monday that it was not persevering with the “wholesome growth” of the challenge, including they wish to hand it over for the group to develop.
It’s with a heavy coronary heart that we should inform you that we will not proceed wholesome growth of the NEONEXUS challenge. We wish to hand over the challenge to our group, or a community-selected celebration for takeover if that is possible / doable.
I am deeply sorry,
— neonexus_world (@neonexus_world) March 21, 2022
Estimates suggest that the challenge raised round 25,000 SOL for its NFT mints which might be price $2.2 million on the time of writing. With SOL costs climbing to over $150 across the time of the token mints, the challenge could have made an estimated $3.5 to $4.5 million.
NeoNexus is a metaverse challenge that options each a deliberate utility and a governance coin. It had sold over 4,000 “property NFTs,” with the challenge planning to supply an additional 6,000 property NFTs and character, car and accent tokens deliberate for the long run. The challenge at present has over 13,000 members in its Discord channel.
In a put up on the challenge‘s Discord, Shi wrote that the market circumstances had been to blame for the staff halting growth, with the challenge‘s funds used to pay wages, tech infrastructure, enterprise charges and taxes.
“It has been extremely troublesome making an attempt to develop and proceed our challenge on this ecosystem and market circumstances the place the worth of SOL has dropped a lot and the exercise, quantity, and curiosity within the entirety of the Solana NFT house has decreased.”
Market circumstances over the past few months have been choppy, with the worth of SOL falling over 50% in three months, according to information from CoinGecko. It hit a 90 day excessive of simply over $200 in late December and since has steadily fallen to commerce across the $80 mark.
Shi added that over 20 workers members of the dad or mum firm, Unlock Defi, had been laid off as of the tip of March, and requested if a group takeover was doable.
Many commenters have accused the challenge of committing a slow-rug, increase the challenge solely to exit and take the funds months later.
Rattling that’s an enormous sluggish rug
— Keizer166 (@KeizerNFT) March 21, 2022
Pseudonymous crypto rip-off researcher and author, “zachxbt,” shared screenshots of tweets Shi made in November, displaying the founder sitting in a supercar and boasting of driving in a Lamborghini. Zachxbt used these photos to query how the challenge may elevate thousands and thousands solely to expire of funds in a couple of months.
So this challenge raised $4m from a number of NFT drops and someway runs out of the funds after only a few months?
— zachxbt (@zachxbt) March 21, 2022
Varied NFT initiatives marketed their very own choices when responding to the NeoNexus tweet in an try to alleviate the losses some traders could have shouldered as a result of announcement. Many provided whitelists for upcoming mints to those that responded with “NEONEXUS” on their respective Discord channels.
On the time of writing, the web sites for each the NeoNexus challenge and Unlock Defi had been offline. Cointelegraph reached out to Shi and former workers for remark however they didn’t instantly reply.