NFT Controversies: Pixel Penguin’s Rug Pull, Epic Games’ Blockchain Gaming Push, and Kellogg’s Metaverse Plans

Intricate pixelated art scene, penguin with an unraveling rug, lively metaverse environment, NFT tokens floating nearby, digital Pokémon-inspired creatures, elements of FPS gameplay, muted colors with hints of vibrant tones, low light setting creating a mood of mystery and caution, contrasting optimism in evolving technology, digital art auction in the background.

The nonfungible-token (NFT) project Pixel Penguin has recently come under fire for what blockchain investigator ZachXBT has alleged is a “charity project rug.” Pixel Penguins NFTs gained attention after a Twitter thread claiming the creator, known as Hopeexist1, launched the project to help fund her cancer treatment. However, suspicions arose after the NFT community discovered the creator had previously profited from selling stolen art and may have fabricated the cancer story. As a result, the floor price of Pixel Penguins NFTs has plummeted to around $7.

Meanwhile, Fortnite developers Epic Games continue to embrace blockchain gaming, planning to add two new blockchain games to their store. The first, Defimons, is a free-to-play Pokémon-inspired RPG with turn-based combat and in-game currency. The second, Project Red, features open-world elements and a first-person-shooter game mode. Despite skepticism from traditional gamers, Epic Games has announced plans to add about 20 new blockchain games by early 2024.

In other news, defunct crypto hedge fund Three Arrows Capital (3AC) is preparing for the second round of its NFT garage sale this month. Following a $2.5 million auction of 3AC’s NFTs, the upcoming auction at Sotheby’s will feature 37 tokens from top projects such as CryptoPunks, Tyler Hobbs’ Fidenzas, and Dmitri Cherniak’s Ringers. The auction is being described as the “largest ever live auction of digital art.”

Furthermore, food brand Kellogg’s has reportedly filed for a slew of trademarks related to the Metaverse, NFTs, collectibles, and crypto tokens. According to trademark attorney Mike Kondoudis, the company is considering launching NFT avatars, crypto collectibles, virtual environments, and VR-gaming centered around their well-known food brands.

Despite the ongoing controversies and setbacks within the NFT space, the sector continues to thrive with new projects and collaborations. It is essential for investors and enthusiasts alike to stay educated and informed about the industry trends and maintain a balanced perspective on the pros and cons of such projects.

Source: Cointelegraph

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