The founder of NeoNexus, a Solana-based NFT project, has announced that the team would no longer be developing the project, blaming the decision on the decline in Solana (SOL) costs.The project’s founder, Jack Shi, took to the official NeoNexus Twitter account, stating at 2 p.m. UTC on March 21 that it was no longer continuing the project’s “healthy development,” adding that they would like to pass it over to the community to develop.
Shi stated on the project’s Discord that the team’s decision to suspend work was due to market conditions, with the project’s finances being utilized to pay wages, tech infrastructure, company fees, and taxes.
As per the estimate, the initiative generated roughly 25,000 SOL for its NFT mints, which would be worth $2.2 million at today’s pricing. With SOL prices reaching above $150 at the time of the token minting, the project might have made between $3.5 and $4.5 million.
NeoNexus is a Metaverse project with a utility and governance coin. It has sold over 4,000 “property NFTs,” with a further 6,000 property NFTs plus character, car, and accessory tokens planned for the future. The project’s Discord channel now has over 13,000 users.
Market circumstances have been tumultuous in recent months, with the price of SOL plummeting more than 50% in three months, according to the data. It peaked at well over $200 in late December and has slowly declined to trade around the $80 mark.
Shi also mentioned that the parent firm, Unlock Defi, had laid off over 20 employees as of the end of March, and questioned if a community takeover was conceivable.
Many commenters have accused the project of committing a “slow-rug,” meaning that it built up the initiative only to quit and collect the payments months later.
In response to the NeoNexus tweet, various NFT projects announced their own offerings in an attempt to mitigate the losses that some investors may have suffered as a result of the news. Many people offered whitelists for upcoming mints to anyone who answered with “NEONEXUS” on their Discord channels.