NeoNexus, an NFT project on the Solana blockchain, has announced its closure amid “declining activity, volume, and interest in the entire Solana NFT space.” The project may face a class action lawsuit.
NeoNexus rose to prominence in the cryptocurrency community earlier this year when it raised 25,000 SOL. At that time, it looked like one of the most promising projects on the Solana blockchain. However, after a period of “explosive” growth, NeoNexus’ business began to decline.
NeoNexus founder Jack Shi credits this with “declining activity, volume and interest in the entire Solana NFT space.” In addition, according to Shi, the “mortal blow” to NeoNexus was caused by a drop in the cost of SOL by almost 50%.
“It is with a heavy heart that we must inform you that we can no longer continue the development of NeoNexus. We would like to hand over the project to our community or a party of their choice for takeover if possible.” wrote Shi on Twitter.
User reactions to the NeoNexus announcement on social media have been lively, with many saying they are ready to join a class action lawsuit against Shi and his project.
The closure of “promising” cryptocurrency projects immediately after fundraising is, unfortunately, not uncommon. So, in November last year, the creators of the SnowdogDAO project, the first “meme token” in the Avalanche blockchain, brought down the token rate by 90% and withdrew most of the funds.
In addition, the Baby Musk Coin token-meme lost almost 100% in value, and users accused the creators of the project of fraud. The reason for the price drop, according to the PeckShield analytical platform, was the $BabyMUSK deployer dumping its tokens.