GSPartners, a company previously flagged for its involvement in alleged Ponzi schemes, has launched a new digital asset collection called "Lydian Lions." This series of non-fungible tokens, or NFTs, features computer-generated lion illustrations. Affiliates of GSPartners are being asked to pay cryptocurrency, including Bitcoin, Ethereum, and Tether, or surrender G999 tokens to acquire these digital assets.

The Lydian Lions collection employs a common method for generating large quantities of NFTs with minimal artistic input. This process typically begins with a foundational image, in this case, a lion graphic. Various digital layers, such as accessories, different facial expressions, and varied features, are then created. A bot combines these elements with a pre-selected color palette to generate a unique digital collectible. Some operators even duplicate their work by running images through mirroring algorithms, effectively doubling the number of "exclusive" collections they can offer.

GSPartners' marketing for Lydian Lions emphasizes its connection to the company. However, the underlying asset is essentially a link to a clipart image, likely hosted on a GSPartners-controlled server. Critics point out that if GSPartners collapses, as has been alleged with previous ventures, the link within the NFT will break, rendering the digital asset worthless. The value of these NFTs is currently tied to the hype generated by GSPartners and its network of promoters, rather than any inherent utility or scarcity.

While NFTs saw legitimate use cases in early 2021, the market has since been criticized for facilitating money laundering and wash trading. Scammers can acquire an NFT and then "sell" it for an inflated price to an associate, creating a false transaction history. This inflated value can then be used to deceive unsuspecting buyers who hope to profit from resale. Wash trading involves coordinated trading among insiders to artificially drive up an asset's price before selling it to a victim.

GSPartners affiliates are acquiring Lydian Lions NFTs at prices ranging from 28 to 888 USDT, with equivalent values accepted in other supported cryptocurrencies. Marketing materials from GSPartners, circulating in late November, promoted these NFTs. The closed nature of the Lydian Lions collection, being tied exclusively to GSPartners, limits the potential for external market manipulation but also removes any pretense of broader desirability for the digital assets themselves.

The company's prior operations have drawn scrutiny. In December 2023, GSPartners was reportedly facing a lawsuit in the UK from investors who lost substantial sums of money. This legal action followed earlier reports of GSPartners shutting down its operations in several countries and changing its corporate structure. The company has also been associated with the G999 cryptocurrency, which has been described as a token used to fund Ponzi-like schemes. Regulatory bodies in various jurisdictions have previously issued warnings against GSPartners and its associated activities. Information on potential recovery avenues for individuals who believe they have been defrauded can often be found through national consumer protection agencies or financial conduct authorities.