There is no doubt that there has been an influx of enthusiastic investors on Web3, despite the decline in total sales volume over the last seven days. Since early May, the total market capitalization for non-flammable tokens (NFTs) has exceeded 19.4 billion, with total volume exceeding $ 1.2 billion in the last seven days.
While volumes are lower than usual, viewers are quick to wonder if the launched projects are delivering viable products, given the amount it puts into them. Although this is not always the case, NFT investors are making their assessment based on roadmaps, announcements and estimates shared by the team. However, given the pace at which the fledgling NFT sector is advancing, the path and locks should be expected when investing in NFTs.
Notable projects and Blue Chip Estates NFTs such as Cool Cats’ Cool Pets, Axie Infinity, and even board Ape Yacht Club (BAYC) have strayed a bit from their intended plans, which has dampened the enthusiasm of their customers. is going. While this obviously works well for BAYC, it is important for investors to understand that investing in a roadmap promise can be frustrating.
Unexpected potential for increased pain
It’s interesting to stumble upon a project that looks like a blue chip caliber. The project can mark all the boxes and the team proves that it has developed a working product before, this art resonates with diverse groups of people. If the community is strong and united around their belief in the project and is supported by a desired roadmap, investors will be convinced that they have found a winner.
Of course, this is not a guarantee of success.
Take, for example, Cool Pets, which launched on January 31 and aimed to release its play-to-win (P2E) game Cooltopia. The launch was delayed due to some technical glitches and as a result many NFT traders lost confidence in the project. Additionally, on April 29, Chris Hessett, the former CEO of Cole Cats NFT, resigned and the company is now looking for an alternative.
We are looking for a new CEO !!
Chris Hast resigns as CEO We thank them and wish them well in their future endeavors. We are working with a top notch company to help you find a world class CEO. In the interim, the founders will lead and focus on CC’s vision and direction.
– Cool cats (olcoolcatsnft) April 29, 2022
Often the biggest obstacle to the success of a project is unforeseen events that can cause logistical problems, but it is important to note the difference between “good” and “bad” problems. For example, rapid growth can put pressure on a project’s ability to safely measure, but it often targets it.
Axie Infinity was not immune to a social engineering hack that resulted in a $ 625 million hack, representing one of the biggest cryptocurrency exploits in history.
As it stands, the Ronin Bridge that transfers money to Ethereum Minute is closed. That is, consumer capital is currently locked in the Ronan network until a full audit is completed. This unexpected event closed the investors with their capital and left the game tokens inside them in a sharp decline trend. In light of this, the morale of the community has gone through some of its darkest days and investors have expressed their views on how to move forward.
Market cycles can affect morale.
Accelerating development can not only target a project, but it can also lead many kitchen chefs to experiment with new ideas. Often, as the user base of a project grows, so does the number of opinions about what is best for the community and the future and sustainability of the project. This is where speculation begins and expectations begin to form.
The Outdated Digital Land NFTs by Yoga Labs Were The most anticipated coin ever for 2022, valued at over $ 110,880. Most of these values were attributed to rare coda NFTs, which were randomly distributed elsewhere.
As the coin was priced in the ApeCoin currency, the OpenSea secondary market supported the APE as a payment method for future listings. The Otherdeeds sold at an average price of $ 25,629 before the disclosure, but the APE dropped to $ 15,510 after the disclosure, with the price declining.
While many Web3 investors expected the coin to outperform others, they did not expect the general cryptocurrency and NFT markets to go down. In the last seven days, Ethereum has dropped by 15% and with the majority of NFTs being based on Ethereum, their prices have also risen sharply. Solana-based NFTs (SOL) were also heavily affected, with the SOL trend down nearly 40% in the last seven days.
NFT traders also predicted that Mint would boost the NFT market with liquidity. While liquidity has been incorporated into certain aggregates, the total sales volume of NFTs has declined by 40% in the last seven days. These numbers indicate that the market may enter the cooling off period.
With most markets looking red, NFT investors are finding themselves in difficult situations. Some investors have raised leverage beyond what they could have covered and are forced to sell their assets at a loss to meet margin calls and liquidation. Other retailers are rationalizing the downside. In panic Due to rising interest rates in the United States.
The WAGMI “We are all going to make it” mantra, which has become popular among NFT investors, is being tested and traders are having to deal with market cycles that are not always accompanied by heights and memorable volumes. On the plus side, it eliminates unhealthy sugary foods from one’s diet. Wise investors use the expected market downturn as a momentStack and stay alive”, Expanding their portfolios and taking existing lows to new all-time highs.