De’aaron fox nft scam

The Swipa The Fox NFT Discord bloomed, awaiting their forthcoming meeting on Swipa Island (alleged to be the first island created by an athlete in the metaverse). Unfortunately, this is when things went sour.

On Wednesday, Fox made the announcement that the project, which he started in the middle of the NBA season, would have to be shut down due to the demands of said season. The Swipa The Fox NFT Instagram and Twitter pages went down and then private; Fox shut down all comments on his official social media pages; the NFT website went dark; and the floor price collapsed down to 0.003 ETH. That is worth, at the time of writing, $7.93, well below the $285 that the mint price would have been worth on January 16.

NBA season being too demanding on his time and attention, adding that he will be focusing on his obligations to the Kings and their fan base.

“I delegated certain aspects to the launch of the NFT in an attempt to partner with professionals,” Fox explained. “We weren’t happy with the execution & demand on my time and attention during the NBA season.”

Fox added that his NFT project is “about a brand that will continue to grow” and that the project would be updated when the current NBA season ends.

“As stated previously, I look forward to doing [this project] again the right way and adding value to my NFT holders,” Fox said.

However, that’s not how investors interpreted his announcement.

NFT Scam? Investors Outraged

@[email protected] just rugged a project that generated 1.2 million dollars.

The image below shows how much was paid out to different accounts after the project sold 3200 NFTs (yes, the project did not sell out).

The future of this project is pretty much over. Once the community loses trust in the team, no one will be interested to invest. The community wallet seems to have about 80 ETH left.
But without the full team, we don’t see this project meeting the roadmap expectations.

Swipa The Fox — NBA Player with salary of $30 Million/year takes home 420 ETH after pulling the rug

You wonder, why would someone making $30 million a year in the NBA rug-pull their fans for $1 million? I don’t know the real answer for that. But the creator of Swipa the Fox, De’Aaron Fox, said the following in his tweets.

I want to address an NFT project we launched recently. The project launch was ill timed.

De’aaron fox nft scambi

Fox stated that he “would buy back the five NFTs and also take community funds to buy jerseys, so that he could sign and then send them back out to those affected.” Keep in mind that the affected in this case make up around 3 percent of the total amount of people who bought into the project.

Matt says Fox actually did follow through on repaying some of the damage, but at a cost.

“He actually paid me back this morning for five of my “Stories” but I had to list them on OpenSea and pay him a 10 percent royalty and 2 percent to OpenSea. We got money back, which is better than what most people got but he still saved 10 percent on the deal!”

Right now it looks like about 2,000 investors will be left holding the proverbial bag.

De’aaron fox nft scammed

Discord server created to figure out next steps and vent frustrations — there is a mix of anger, disbelief, and knowing resignation.

“The more I learned about NFTs the more I realized that there were bad signs in this project, and I actually warned a bunch of the people before the mods started getting aggressive with me,” said urucollector.crypto, a Discord user that was part of the community who acquired 13 NFTs for around 1.85 ETH, or $4,844.

“Since mint you could tell that the management team — which are the people running the show, hired by Fox — were struggling to keep the community happy because the floor price started to drop drastically and people were willing to sell for far below what they paid initially.”

There were two planned drops, one on January 11, involving a more limited pre-sale and then a second one on January 13, which was more widely available.

De’aaron fox nft scamp

Among other things, he would establish five or more scholarships to the University of Kentucky, give benefits to members such as creating space in the metaverse to host basketball tournaments, raffle off All-Star Game tickets and merchandise, and have one-on-one personalized experiences with him.

Green Team members could gain even more benefits like in-person meetings and private chats with the Kings guard by ponying up 0.3 Ethereum, worth roughly $1,000 at the time.

There was also a community aspect that was part of the allure for investors. Fox created a Discord for the project, which provided an online chat room where users could interact with him personally. In the beginning of the project, Fox was logged in and answering questions on a daily basis.

Some time around February 17, someone connected to the project who goes by Chief and had been hosting Twitter spaces and running official promotions for the NFT team left the project suddenly, throwing the whole affair into apparent turmoil. “We are in talks with D’s team right now to decide on who should replace Chief’s role and make some big changes to better reflect the vision this project started off with,” 4FUN wrote in the Swipa Discord. Their message was the last official communique in the Discord’s announcement’s channel before Fox’s announcement that the project was going on hiatus.

The Kings did not answer an email from Defector seeking comment, and messages from a Swipa The Fox NFT holder to Fox’s representation also did not go answered.

Hope he has a good PR team [;] they will be in full damage control,” user @Jesalenco commented.

NFT Scam or Not?

As mentioned, a similar situation with Fox’s NFT project took place in the U.K. in 2021, when “Evolved Apes’” developer, Evil Ape, disappeared with roughly $2.7 million-worth of investor money.

A week after the NFT-based fighting game where players can use their NFTs to fight people with for Ethereum was launched, the developer left its 4,300 NFT owners in the digital dust.

According to “Evolved Apes” Discord (now Fight Back Apes Discord) server administrator Jdmjem, police reports against Evil Ape were filed, but due to Evolved Apes NFT owners getting the NFT they paid for, nothing illegal technically happened even though it’s unethical, per PC Gamer.

“The Things is that everyone did get what they paid for, an NFT,” Jdmjem said.

Project founders will raise money and walk away with all of the funds, shutting down communication channels on their way out to make it more difficult for investors to organize.

“If you think of this as a normal company,” one NFT holder named Loaded Lion told The Sporting News of the rug-pulling technique, “[Fox] had basically IPO-ed, gathered all of the funds, and left with all of the shareholders’ funds. If this had been a normal IPO, he’d be a major fugitive.”

While rug pulling is always an inherent risk in the largely unregulated NFT space, purchasers of Fox’s NFT were caught off-guard because of his personal involvement and overall wealth.

Fox’s NFTs were reportedly minted (created on the blockchain by users who wanted one) for .085 ETH – that’s the Ethereum cryptocurrency. At the project’s Jan. 15 launch, one Ethereum was worth about $3,100, per The Action Network, which translated into roughly $250 to mint one of Fox’s NFTs. That means buyers spent about $1.5 million on SwipaTheFox NFTs.

Are buyers getting their money back?

It doesn’t look like it so far, but Fox has promised users who bought certain numbers of his NFTs and autographed jersey – which apparently is valued at around $100.
There could be additional make-good efforts and even a return of everyone’s money. Or not. If Fox and his NFT partners are sued, that could shift the response.

Isn’t this illegal?

In the real world, if you promise something, take money for it, and don’t deliver, you’re liable.

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However, according to a post by a Twitter user named @web3isgreat, who shares blogs on the “mishaps” in the digital asset industry, the project suddenly collapsed on February 23rd, and all the social media accounts related to it were gone.

NBA player De’Aaron Fox ditches his NFT project after raking in $1.5 million

February 23, 2022

— web3 is going just great (@web3isgreat) February 24, 2022

To mitigate the situation, Fox unsuccessfully tried to explain the situation, arguing that it wasn’t the right time for him to release the project, and he will go back to it as soon as he was ready.

I want to address an NFT project we launched recently.

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