The value of non-fungible tokens (NFTs) is plummeting amid new questions about the value of cryptocurrencies.
The cryptocurrency world took a big hit last week. FTX Trading declares bankruptcy Within an $8 billion shortfall. According to NFT expert Connor Borrego, its influence is now affecting the realm of digital collectibles.
Prices for “The Currency,” a collection of NFTs by acclaimed artist Damien Hirst, fell 12.6% on Friday to $4,666.60, while Moonbird NFTs fell 4.7% to $8,397.50, while Bored Ape Kennel Club It fell 8.3% to $4,672.60. according to Go to the NFT Price Floor.
According to Borrego, the bankruptcy of FTX has caused the prices of some cryptocurrencies to drop, reducing the purchasing power that NFT collectors have enjoyed in the past. Most collectors use cryptocurrencies to buy his NFTs, but many markets also accept traditional payment options such as credit cards.
NFTs use a unique code on the blockchain linked to an image or video to provide someone with proof of ownership of a digital object or access to a service. NFTs can be transferred or sold, but due to their unique code they cannot be copied or split into smaller pieces like other tokens. Some buy NFTs in the hope that they will increase in value, while others buy NFTs just for bragging rights or to participate in new tech trends.
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While NFT sales are down, the bright side is that “it’s much cheaper to buy expensive NFTs,” Borrego added.
Expect further scrutiny
NFTs was popular last year Artists, athletes, celebrities and major retailers have used new technology to sell digital versions of their products. But the demise of FTX means cryptocurrency companies will have to work hard to regain the trust of their customers, industry leaders said.
Binance CEO Zhao Changpeng said at a TechCrunch crypto conference in Florida on Thursday that account holders were “really hurt financially” by the FTX meltdown.
“It’s going to really shake confidence in the credibility of trust in this industry,” he said. [of transactions on an exchange] decrease. Regulators around the world will be scrutinizing us very hard going forward. ”
The hype around NFT started to wane this year, even before FTX collapsed. data indicate. The Bored Ape Yacht Club has lost her $2 billion in market cap in the last seven months. according to to the crypto presale.
Global NFT revenue fell to $1.6 billion in the third quarter of this year, down 77% from $7.3 billion in the second quarter, according to the NFT Sector Tracker. irreplaceableThe number of active wallets holding NFTs has decreased by 52% over the same period. This suggests that customers are deciding to hold their NFTs at a loss instead of selling them, Nonfungible said.