If you Bought a Bored Ape Yacht Club NFT in Early May, you're most likely down 80%
As crypto markets collapse, many jpeg holders are down upwards of 80%...
Why is it that as crypto markets tank, nobody is wondering why the hell people were buying jpegs for the price of homes knowing that this could be the possibility for the market someday? It seems nobody is speaking of the fall within the NFT market and obviously, part of it has to do with the price of Ethereum continuing its downturn headed towards as much as 90% YTD.
To put it blatantly, like many gold rushes, they eventually come to a close. This is exactly what has happened to NFTs and is continuing to happen to NFTs. If you purchased one of these over-priced jpegs in May, you’ve most likely lost 80% from floor price.
Floor prices are usually used as a means to measure how much a collection is worth because if people are buying them, that is the minimum you will be able to sell them for. If the floor price is dropping faster than gravity drops an object, it means people are on the computer lowering prices to capture a sale.
May 1st witnessed the Bored Ape Yacht Club craze hit a ridiculous mark of a $420,430-floor price. Since the beginning of May, it has become a shit show. Many holders are witnessing losses of 79% and this price drop has been seen as a bit more severe than that of actual stock markets and crypto markets. However, YOY is in line with all other markets.
The current prices of the cryptocurrencies used to buy the jpegs can be a reason they’re losing so much of their value. Ethereum has crashed nearly 60% since the beginning of May. YOY gains have been given up in the crypto market, but only down nearly 25-30% from all-time highs indicating NFTs are getting destroyed relative to the total market…