Friday, December 8, 2023

NeoNexus to no longer continue “healthy development” of the NFT project

NeoNexus is likely to hand over its NFT project to the community to develop as its team will no longer work on it. Jack Shi, the founder of NeoNexus, blamed the drop in Solana prices. He tweeted that it was no longer continuing the healthy development of the project.

Shi said the team would hand over the project to the community, or a community-selected party for takeover – if it proves feasible, that is. The popular NFT project raised around 25,000 SOL, which would be worth about $2.2 million. The project may have made $3.5 million – $4.5 million.

The founder blamed the market conditions for the decision. The project’s funds were used to pay wages, business fees, tech infrastructure, and taxes, etc. Shi highlighted that it has been difficult to grow and continue the project in this ecosystem. Moreover, the price of SOL has been dropping significantly. It has fallen over 50% in three months. In late December 2021, SOL recorded a 90-day high of just over $200. Since then, it has steadily fallen to the $80 mark. At the time of writing this article, Solana was trading at $91.79. Shi said the activity, volume, and interest in the entirety of the Solana NFT space has decreased. Unlock DeFi, the parent company, also had to lay off 20 employees.

But the plug on has drawn criticism. NeoNexus project has been alleged of committing a slow-rug, building up the project only to exit, and to take the funds months later. A critic highlighted that the project raised $4 million from multiple NFT drops and added that the founder is now complaining of a lack of funds. The critic even shared a photograph of Jack Shi in a Lamborghini.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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