De’Aaron Fox of the Sacramento Kings revealed his NFT project “SwipaTheFox” in mid-December. And the “high utility NFT collection” went live on January 15. A metaverse basketball court, a scholarship for a University of Kentucky student, and chances to win all-star gaming tickets were all promised in the project plan. Along with “much more to come.” Over 100,000 people joined the project’s Discord, and it received about 475 ETH.
After shutting the plug on an NFT scheme that raised over $1.5 million since beginning in December of 2021, Sacramento Kings guard De’Aaron Fox is facing serious allegations and hundreds of irate investors. Investors are calling it a ‘rug pull’. Implying that Fox plotted to swindle them of their money and never delivered on the promises. He made it when the ‘swipathefox’ NFT business started.
On Wednesday, investors realized that all communication with swipathefox had gone black. Aand word circulated quickly that something was wrong. The official website has been taken down. A Twitter account associated with its development has been deleted. The community Discord has been shut down, and Fox’s personal Twitter account has stopped replies. It became evident to investors that the project was on its way out, leaving them with little to show for their money.
In the crypto world, the term ‘rug pull’ refers to a project that launches, attracts funding. And then it shuts down without delivering on its claims. This has happened before, but rarely, if ever, with a well-known investor like Fox at the helm. Giveaways, exclusive talks, gaming possibilities, and more were promised to anyone who acquired one of Fox’s NFTs in the initial swipathefox initiative. However, two months after its initial release, none of these have been made available.
For those who have already purchased Fox’s NFTs, this declaration is cold comfort. It’s unclear whether they’ll be reimbursed or included in this new endeavor, which Fox claims will be done “the correct way.” It’s understandable that this has enraged investors, who are demanding explanations.
There are still issues over whether this was genuinely a “rug pull,” or simply an ill-advised business that went wrong, as Fox claims. To make matters even more complicated, these investors have a little legal remedy. Unlike traditional securities, crypto and NFTs are not subject to the Securities and Exchange Commission’s regulation and protections. Everything is a jumble. There are no easy fixes, and Fox did nothing on Thursday to repair the damage caused by the NFT initiative.