While the deal generated an estimated $8 million profit for Paul, it also revived criticism over his past decision to fractionalize the card through Liquid Marketplace, a platform that later went offline. Critics questioned the structure of the NFT-style tokenization, though Paul said the shutdown was beyond his control and that he helped restore user withdrawals.
Logan Paul Stirs NFT Row
YouTube personality and entrepreneur Logan Paul reportedly set a new Guinness World Record after selling his rare Pikachu Illustrator Pokémon card for almost $16.5 million. This is the most expensive trading card sale in history.
The card is one of just 39 produced as part of a promotional competition in the 1990s, and was auctioned on Monday. It was ultimately purchased by AJ Scaramucci, son of financier Anthony Scaramucci, following competitive bidding that reached well into the seven- and eight-figure range. Paul earned roughly $8 million in profit after fees as he originally bought the card in July of 2021 for $5.3 million.
However, the transaction reignited controversy tied to Paul’s previous decision to fractionalize ownership of the card through a platform called Liquid Marketplace in 2022. The move allowed investors to purchase tokenized shares representing a portion of the card’s value. The platform later went offline, which left some investors struggling to access their funds and prompted regulatory scrutiny. In June of 2024, Canada’s Ontario Securities Commission filed a lawsuit related to Liquid Marketplace, but Paul is not named as a defendant in the case.
Critics resurfaced concerns about the structure of the fractionalization model. Gabriel Shapiro, general counsel at Delphi Labs, described the episode on social media as a “Pikachu NFT fractionalization fiasco,” and argued that such tokenization arrangements can create confusion about ownership rights. According to Shapiro, the tokens were effectively linked to the underlying asset without granting holders enforceable rights to it.
Paul responded to the criticism by stating that Liquid Marketplace’s shutdown occurred for reasons beyond his control. He said that once he became aware of the issues, he paid to help restore the platform so users could withdraw their funds. According to Paul, only 5.4% of the card had been fractionalized, with investors collectively contributing around $270,000.
The new scrutiny also brings attention to Paul’s overall track record in the NFT and digital asset space. His CryptoZoo NFT project previously faced a lot of backlash after failing to deliver its promised play-to-earn game. The project led to a class-action lawsuit in 2023, with investors alleging fraud. Paul later introduced a buyback program, and offered refunds to participants who agreed to waive legal claims. The lawsuit was ultimately dismissed in 2025.
Source: https://coinpaper.com/14664/logan-paul-pokemon-sale-rekindles-nft-drama
