Logan Paul and the Crypto Controversies

In 2021, social media star Logan Paul promoted high-risk cryptocurrency tokens known as meme coins. These tokens, often inspired by internet jokes, lack intrinsic value and rely on hype. One example was Elongate, a meme coin Paul endorsed to his Maverick Club subscribers. “Elongate made me rich. Elon baby let’s go!” he declared. Following this, Elongate soared by over 6,000% before crashing hours later.

Investigations revealed a crypto wallet linked to Paul. Transactions showed the wallet had received funds from his public account before engaging in crypto trading, raising questions about his intentions.

CryptoZoo and Legal Trouble

Paul’s next venture, CryptoZoo, marketed itself as an NFT-based trading card game where players could buy Zoo Tokens to purchase NFT eggs. These eggs would hatch into hybrid animals, which promised passive income generation. “It’s a really fun game that makes you money,” Paul claimed.

The project raised $18.5 million (£14.3m) but quickly faced issues. Promised features failed to work, and the value of Zoo Tokens and NFTs plummeted. Rueben Tauk, a 21-year-old investor, lost £33,000. “We were given certain expectations about features that would be released. A lot of the time, those features wouldn’t work,” he explained.

At least 130 investors are suing Paul, alleging $4.2 million (£3.25m) in losses. Lawyer Tom Kherkher claims Paul and his team engaged in insider trading through a “stealth launch” of Zoo Tokens. Paul has denied wrongdoing, blaming others on his team.

Trust Broken

Paul remains a powerful influencer, branching into boxing, wrestling, and co-launching the viral energy drink Prime. Yet, for fans like Tauk, Paul’s image is tarnished.

“Once you listen to someone and trust what they’re saying and they betray that trust, their words don’t mean anything anymore,” Tauk said.