Just one week ago, the NFT sector was bubbling with optimism as token prices saw steady gains amid a backdrop of vigorous project building. But as the Terra collapse faded into distant memory a new story of gross negligence emerged from the shadows.
So, as the FTX empire crumbles into dust, it has put the fear, uncertainty and doubt firmly back in contention and caused chaos in the NFT realm.
NFTs Down on Almost All Metrics
As the initial shock of such a meteoric fall from grace continues to influence the market, the immediate backlash has left a general aversion to risk. Therefore, seeing many investors take a step away from NFTs as they seek to take stock of the current pandemonium.
As a result, floor prices, sales volumes, market capitalization and daily trading have all plummeted since the FTX collapse, with even the most high-profile NFT projects in the sphere not immune to the harsh effects of this latest setback.
Solana NFTs Flatlined
Unfortunately for the Solana ecosystem, it shares a close relationship with FTX and its partner in crime, Alameda Research, with the latter holding a significant 10% of the Solana token’s market cap within its portfolio.
As a result, $SOL has seen a cataclysmic 68% drop in value, which has in turn heavily impacted Solana-based NFTs. Blockchain gaming titles such as Star Atlas have taken an additional hit due to its funds held within the erstwhile exchange.
NFT Drops Postponed
A third and inevitable impact of the latest catastrophe has seen many NFT projects postpone their expected drops, seeing right now as the absolute worst time to debut their collections to the world. Hugely anticipated projects such as the Pablo Stanley Human Kind have dropped holding fire until the market calms down. Hopefully, this will only pose a temporary setback, however, but without doubt, prickly times lay ahead.
For sure, the NFT market will rebound from this latest setback, however, it may not look exactly as it did earlier in the year. So, as the dust settles and the shock subsides, the industry will wait with baited anticipation to see what emerges from the ashes.