3 - 4 minute read
If you’re a trader involved with non-fungible tokens (NFTs), you’ve likely already heard about the slump in the floor price of the Bored Ape Yacht Club (BAYC) collection. The floor price hit a five-month low of 55.59 ether (ETH), as stated by Cryptowatch data. This decline happened after a prominent pseudonymous holder, “franklinisbored,” announced on Twitter that he had liquidated the majority of his collection.
But the dump was no regular one, as on-chain data shows that the holder sold at least 27 BAYC NFTs over a 12-hour period, earning 1439.5828 ETH ($2.8 million) in the process. Reasons behind the holder’s decision spanned to “unfortunate” real-life issues. He further explained in his tweet that “Due to an unfortunate IRL issue, I have had to sell off a lot of BAYC apes to pay off BendDAO loans while the liquidity was available,” he said. “I won’t get involved in NFT trading/twitter for a while, and will just focus on my private life for the time being with my remaining apes.”
Legitimacy behind these claims is supported by data from Etherscan, where numerous transactions were made from franklinisbored’s wallet to BendDAO.
Gm. Due to an unfortunate IRL issue, I have had to sell off a lot of BAYC apes to pay off BendDAO loans while the liquidity was available. I won't get involved in NFT trading/twitter for a while, and will just focus on my private life for the time being with my remaining apes.— Franklin (@franklinisbored) April 13, 2023
The lack of involvement from a prominent holder such as “franklinisbored” in NFT trading for the foreseeable future has the potential to befuddle traders as the implications of their action on the BAYC ecosystem cannot yet be deciphered. However, the good news for traders is that the native governance token of the Bored Ape Yacht Club ecosystem, ApeCoin (APE), remains stable over the past 24 hours concerning its dollar valuation, even though it’s falling against ether trading pairs.
The Bottom Line
Although it’s essential to keep an eye on the sale trends of well-known holders, it’s also important to monitor the possible implications of their decision on the asset. The impact of ‘franklinisbored’s’ decision to liquidate the majority of his collection can lead to lesser confidence in BAYC collection, assuming there aren’t sound reasons provided for the liquidation.