A crypto influencer is facing additional backlash following a‘shady‘ NFT sale

Alex Saunders, the embattled cryptocurrency social media celebrity, is now facing more inquiries from irate followers over the sale of 100 non-fungible tokens (NFTs) last year, which he sold to support the construction of a virtual corporate headquarters but never paid for.

Tasmania-based Mr Saunders, the founder of subscription cryptocurrency news website Nugget's News, is already in the headlines following an investor's Supreme Court demand for payback of many debts last week.

He did, however, issue 100 tokens in November that could be purchased for one ether each using the cryptocurrency ether.

At the time, one ether cost $777, and he generated $77,700 through the NFTs, which were to serve as exclusive tickets to a virtual Nugget's News headquarters being developed in a digital world, according to documents reviewed by The Australian Financial Review.

Since the tokens were sold, the price of ether has risen dramatically, with 100 ether being worth more than $427,000. However, Polyagonal Mind, the Spanish firm hired to develop the digital headquarters, claims it has never been paid, and investors who purchased NFTs are demanding a refund.

NFTs are tradable digital assets that are frequently used to track and identify the ownership of digital assets such as artwork or other media.

“Alex was an extremely trustworthy individual, and I was excited to be a part of what he was building,” said one Newcastle resident who purchased an NFT from Mr Saunders in November.

“However, the debut date was repeatedly pushed back, and Alex has now gone entirely silent.”

This is a distinct project from another for which Mr Saunders allegedly gathered $9 million in May, sparking a lawsuit in the Victorian Supreme Court. Additionally, there are concerns about the $5 million Mr Saunders may have borrowed from several persons and has not yet repaid.

On November 30, Mr Saunders coined 100 NFTs for this endeavour and sold them all within weeks.

NFTs can be traded in a marketplace, and Mr Saunders had structured each trade so that the "creator" received 50% of subsequent sales.

“So, not only did Alex Saunders receive my money when I purchased this NFT, but he also receives 50% of the price if I resell it,” the investor explained, adding that he was considering legal action.

Enhanced reality

Investors were informed that proceeds from the NFTs would be utilised to create a Nugget's News "metaverse."

A metaverse is a virtual three-dimensional environment that combines augmented and virtual reality and enables individuals to interact.

Mr Saunders announced the headquarters in a post to his paid Facebook group, which is currently undergoing a rebranding as Collective Shift. Additionally, there are professional offices and a function centre.”

“For private events, unique NFT tickets will direct you to designated spots upon entry and will recognise your digital ticket ownership,” the post adds.

Mr Saunders commissioned Polyagonal Mind to construct the digital structure in a rented location in Decentraland, a popular metaverse where virtual property has previously sold for as much as $900,000.

“It wasn't a big work, but once we completed it, the launch date was repeatedly pushed back,” Polygonal Mind CEO Daniel Garcia told the Financial Review.

“When we discovered all of Alex's other issues, we drew a line through this one and let it go. We are not interested in being linked with this type of activity.”

Mr Garcia suggested a price of less than $10,000 for the project, and while he sent a contract to Mr Saunders for signature, it was never returned.

The Financial Review can confirm that Mr Saunders has abandoned the block of property he rented in Crypto Alley, an area of Decentraland, and that the building Polygonal Mind constructed has been demolished.

“We've now made the entire code base open source, allowing anyone to utilise and expand upon it,” Mr Garcia explained.

“I feel he could have made a lot of money operating this lawful firm; hence, why all this sleazy behaviour?”

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