The non-fungible token market has experienced exponential growth and traction among institutions, users and businesses since it came into the spotlight sometime in 2021. However, the nascent NFT sector has also seen some controversies which can’t be ignored. In this article, we shall explore in-depth why some NFT investors are dumping NFTs despite the recent NFT market resurgence.
In a January 30 blog post, Lamboland, an NFT investor and the head of growth at gaming studio World Largest, shared concerns about some of the NFT investors, which have been dumping their non-fungible token holding in recent months despite the NFT market retesting some surge in recent weeks.
The dark side of NFTs:
Why the biggest whales are calling out web3 gaming projects🧵👇
(1/13) pic.twitter.com/dh71DUBQKO
— Lamboland (@LambolandNFT) January 30, 2024
1. AOFverse NFT Collection
Earlier this week, Dingaling, a non-fungible token influencer and investor, shared that he sold all his 143 AOFverse NFTs for a $140,000 loss. This was the first time Dingaling ever dumped an NFT collection and posted about it on X (formerly Twitter.) In that case, what happened?
Dumped 143 @AOFverse Founders keys after the team’s latest update, taking a ~60E loss overall
I usually just let NFTs in my wallet go to zero but teams like this that don’t appreciate their community don’t belong in Web3. Why even launch an NFT collection?
Good luck 👋
— dingaling (@dingalingts) January 29, 2024
Last week, the AOFverse NFT team announced the details for their $AFG token, which caused the floor price to crash. The announcement left many investors disgruntled as they would only get 1% of the supply and 0% unlock at TGE. Moreover, contrary to many investors’ expectations, all the tokens would take over 20 months to open.
2. Valhalla NFT Collection
Valhalla, an anime non-fungible token project that aims to bring gamers from around the world together to build a community, is another NFT project that has left its investors with no option other than dumping their NFTs. Valhalla recently launched a keyboard that their NFT holders can buy, which has left many investors disgruntled.
In 2022, Valhalla raised $15 million from Pantera Capital, Comcast Ventures, and other notable investors and promised its investors that it would create a Twitch competitor. Moreover, the NFT project also raised another $5.4 million from selling NFTs. But, according to its community, they’ve not delivered anything of value to their community in the past 18 months.
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