- IPX and CRIPCO partnered on NFT projects including Wadeside and OOZ, but allegations of a rug pull emerged after the community was shut down and the partner disappeared.
- Promised benefits for holders of NFTs such as Wadeside, including token rewards, exclusive merchandise, and offline events, were not properly delivered, and investors denounced the situation as fraud.
- The floor prices of the Wadeside and OOZ NFTs have fallen about 95%% from the auction level and to around 0.0008 ETH, respectively, leaving them effectively worthless.
Forecast Trend Report by Period
IPX Swept Up in NFT Rug Pull Allegations
Issuing Partner Disappears After Closing Community
‘Broken Promises’ Send Prices Down 95%
IPX, the digital intellectual property entertainment company formerly known as Line Friends, is facing allegations of an NFT rug pull. The claims surfaced after CRIPCO, its NFT issuing partner, abruptly shut down its community channel and then went silent. The controversy widened after a project identified as the destination for a planned community migration denied any ties to CRIPCO, fueling suspicions that the companies had effectively pulled out of the business and abandoned holders.
Line Friends changed its name to IPX in 2022 and announced its entry into the NFT business, signing an agreement with NFT platform CRIPCO. CRIPCO then took on what was effectively the lead role in IPX’s NFT operations. IPX also participated in CRIPCO DAO, the project’s decision-making body, underscoring the close relationship between the two.
IPX later launched a series of digital assets through CRIPCO using its character intellectual property, including Wade and OOZ. Wade in particular drew strong market attention after IPX said it had partnered with G-Dragon’s fashion brand Peaceminusone and was preparing a collaboration.
Bloomingbit reported that on May 29 the companies unilaterally shut down their official Discord channel, which had served as the main communication channel for NFT investors. They have since remained silent in response to investor questions.
Just before deleting the channel, the project announced that the existing community would be integrated into the ecosystem of blockchain infrastructure project Creditcoin. But Oh Tae-rim, chief executive officer of Gluwa, the developer of Creditcoin, denied any connection to CRIPCO. Investors have since complained that they were caught in a textbook rug pull.
Although a significant amount of time has passed since the NFTs were launched, most of the benefits originally promised have been left unfulfilled. For Wadeside, the flagship project, the team had promised token rewards based on holding size and duration, exclusive merchandise and offline events. Bloomingbit reported that none of those commitments had been properly delivered. That contrasts with the aggressive marketing campaign at launch, when the company leaned on its corporate credibility.
One investor said they bought the NFT based on Line Friends’ brand recognition and promised rewards. Shutting down the community and going silent after failing to keep those promises amounts to clear fraud, the investor said.
Another investor said all they had received so far was a single T-shirt and a useless storybook. The investor added that prices have fallen so sharply from the purchase price that selling is no longer a realistic option.
The value of the NFTs has since plunged. Wadeside’s floor price has fallen to about 0.0295 ETH, down roughly 95% from its auction sale price of 0.34 ETH, which was worth about $1,090 at the time. OOZ’s floor price has also tumbled from about 0.033 ETH in 2024 to 0.0008 ETH, leaving it effectively worthless.
Some market participants have also alleged that CRIPCO was a hastily assembled paper company created solely for IPX’s NFT business. CRIPCO’s registered business address matches that of ATOZ Singapore Consulting, a firm that helps establish Singapore entities. The fact that CRIPCO was incorporated just three months before signing its collaboration with IPX has added to those suspicions. Anonymous posts on Blind, a workplace community app, also claimed that Line Friends had already abandoned the NFT business and that CRIPCO was nothing more than a Singapore paper company.
IPX told Bloomingbit that, as the original owner of the character intellectual property, it would continue to play an active role and work closely with relevant parties so the matter can be handled responsibly. The company added that it plans to provide separate guidance to asset holders later. IPX also said CRIPCO is a separate company that conducts business related to NFTs using IPX’s intellectual property.
