NeoNexus, a popular NFT project on the Solana blockchain, has announced it is winding up operations amid rumors of the project being a rug pull.
In a tweet last Monday, the founder said the NeoNexus ecosystem will not be able to continue the healthy development of the project. The tweet said that they will hand over the operations to the community, or a “community-selected party for takeover if that’s feasible/possible.”
The Collapse of Neonexus
NeoNexus rose to stardom earlier this year. The NFT project raised almost $2 million in SOL at current prices. During that time, the raised 25,000 SOL amounted to around $4 million. Their “Cyberpunk City in the Metaverse” looked to be one of the most promising projects on the Solana blockchain.
However, it seems things rapidly fell apart with NeoNexus. The founder, Jack Shi, cited several reasons for the dire situation through Discord. First, he said the decrease in “the activity, volume, and interest in the entirety of the Solana NFT space” caused the difficulties faced by the project. In addition, Shi said that depleting funds also is a huge factor for NeoNexus dissolution.
He told the project’s followers on Discord that they will lay off the project’s team composed of more than 20 persons. Shi added there are no foreseeable means of raising money for the project.
Possible Lawsuit for the NFT Project
The announcement garnered many furious reactions from the project’s ecosystem with many alleging a rug pull. Some circles are reportedly discussing legal action with a potential class-action lawsuit.
Twitter user @zachxbt replied to the announcement and said: “So this project raised $4 million from multiple NFT drops and somehow ran out of funds after just a few months?”