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NeoNexus pulls plug on NFT project By BTC Peers

by Mike Robinson

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NeoNexus pulls plug on NFT project

NeoNexus is a Solana-based NFT company that raised 25,000 SOL from investors.

Founder Jack Shi announced via the company’s official Twitter (NYSE:) account on Monday that NeoNexus would no longer continue with the “healthy development” of the project, adding that the community would have to take over development.

NeoNexus was reported to have raised about 25,000 SOL at NFT mints. The company is currently valued at $2.2 million. The price for SOL was around $150 at the time the digital tokens were created, so the sale could have brought in an additional $3.5-$4.5 million.

The metaverse project, which promised a governance coin and planned utility, sold over 4,000 “property NFTs.” There were plans to offer more 6,000 property NFTs and character, accessory, and vehicle tokens in the future.

Shi blamed the state of the market for the team’s decision. In a post on the project’s Discord, he said that the funds were used to pay wages, taxes, and business fees. Unlock Defi’s parent company was also mentioned by him as having laid off 20 employees in March.

It was extremely challenging to expand and maintain our project within this environment and market conditions, when the price of SOL dropped so significantly, and where there is less activity, volume and interest across the entire NFT space.

Shi’s explanation has so far fallen on deaf ears, as many community members accused the project of being a slow-rug. For instance, pseudonymous crypto scam researcher “zachxbt” shared screenshots of tweets Shi made in November, showing the founder sitting in a supercar and claiming to ride in a Lamborghini. The founder then questions why the company would raise so many millions, and run out of money in just a few months.

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