“It’s Probably Going To Be One Big Screaming-Fest”: Crypto Markets Slump Overshadows Opening Of World’s Largest NFT Conference

the fourth annual NFT.NYC The conference started today with 1500 speakers showcasing their shiny new NFT collectibles.

Speakers will take the stage at a time when crypto markets are crashing: Bitcoin and Ether have lost more than 70 percent of their value since November. Media headlines are full of stories of crypto companies going under. The NFT market is also feeling the pain. All told, it’s a bleak time to sell NFTs. New NFT projects are nowhere near the momentum they had a year ago, or even a few months ago.

Japanese artist Takashi Murakami recently apologized to his fans on Twitter after prices for his flower NFTs, launched in May, plummeted.

Francis Kim, an Australian-based entrepreneur behind the NFT project AI-Zuki, is experiencing similar struggles. “I launched my collection like two days ago. I haven’t seen my millions yet,” he half-jokingly told Artnet News. “Bad timing maybe.”

He spent $5,000 to build his digital art collection and the return so far has been zero. kim, who made news earlier this year, after losing a staggering amount of money on crypto margin trading, he will not be attending NFT.NYC for travel expenses.

“I feel like a victim in every story,” she said.

It is difficult to get a clear picture of exactly what is happening in the NFT market, as most of the transaction data comes from the NFT markets themselves. The three main indicators of market performance include platform volume, top-tier NFT project floor prices, and market sentiment, none of which are looking good at the moment.

NFT.NYC 2022. Photo by Ben Davis.

Although OpenSea still holds the position of being the busiest NFT marketplace, its average selling price, number of merchants, and sales volume have decreased. On May 20, the platform had a daily trading volume of $43 million; on Tuesday, daily transactions were less than half of that: 17 million.

Coinbase spent $600 million on its new NFT marketplace, which was supposed to inject new growth into the ailing crypto exchange, but it hasn’t taken off as planned. After attracting $75,000 in trading volume when it opened its doors to the public on May 4, activity has slowed, with only $19,000 in volume on June 20, according to Dune. The firm recently said would cut a fifth of its staff in the midst of the market downturn.

So-called “blue-chip” NFT charges are also in trouble. Bored Ape Yacht Club, one of the most popular ethereum NFT projects, with over $2.2 billion value of trading volume to date, has seen a drop amid market malaise. The cheapest Bored Ape NFT available is down more than 13 percent in the last 30 days, at a current price of 80 ETH ($91,000), per Minimum price NFT.

ApeCoin, the token of the Bored Ape Yacht Club ecosystem and its future game Otherside, has lost 85 percent of its value. After reaching a high of $27.57 on April 28, just before the Bored Ape Yacht Club launched its Otherside land sale, it is now trading at $4.48, according to CoinGecko.

Similarly, CryptoPunks it has not been immune to the shock. Its minimum price is 67 ETH ($76,000), down 33 percent over the last 30 days, according to NFT Floor Price. And Meebits, which was launched in 2021 by Larva Labs, the same firm that created CryptoPunks, is down 5 percent in the past 30 days, to a low of 4.8 ETH ($5,472).

These three “decentralized” collections, representing the main NFT collectibles, are now overseen by Yuga Labs.

Market sentiment is falling as the voices of NFT critics grow louder in the bear market. co-founder of microsoft bill gates said the other day that NFTs are “100 percent based on the biggest fool theory,” and then added, sarcastically, “Obviously, expensive digital images of monkeys are going to improve the world immensely.”

Documenting the early history of NFTs, Adam McBride takes a long-term view into account as the broader crypto market crashes hard. “I’ve said since the middle of last year that we’d hit an ‘NFT are BS’ moment at some point during a bear market,” he told Artnet News. “Who knows how low we can go. But I definitely have a number where I am going to buy a couple of CryptoPunks.”

Meanwhile, the people who bought at the top are not doing well. Someone who bought a Bored Ape in early May is down 70 to 80 percent in dollar terms, Kim said. “NFT.NYC It’s probably going to be a big crying fest.”

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