The non-fungible tokens (NFT) market has taken a downward trend in tandem with the larger crypto market as the market took a major hit in one day.
According to Bloomberg, the NFT Index, which tracks the performance of NFTs and is weighted by the circulating quantity of each NFT, corrected by 23% on Monday.
Even the celebrity-favored Bored Ape Yacht Club (BAYC) saw its NFT values plummet by 25% on Monday’s market fall. Given that several of the BAYC NFTs traded for millions of dollars each in recent months, this is a huge decline.
One of the main drivers of this market catastrophe has been the global macro setup. Last week, the CPI inflation data in the United States topped 8.6%. To control this, analysts expect the Federal Reserve of the United States to announce a 75-basis-point interest rate hike soon. This could have an overall negative influence on the US economy, with the possibility of a recession.
The NFT market, like the broader crypto market, is experiencing a huge crunch this week. However, when compared to the total crypto market, the NFT industry remains a bright spot. Despite the broader market slump, Tops NFT projects have received significant demand this year in 2022. According to a Bloomberg report:
Investors have built substantial portfolios of NFTs in the past six months despite their low liquidity compared to fungible tokens like Bitcoin and Ether.
Hackers broke into bored ape NFT discord, stole over 145 ETH
Gordon Goner, the pseudonymous co-founder of Bored Ape’s parent company Yuga Labs, has issued a warning to Bored Ape NFT holders about a possible exploit of their social media accounts, particularly Twitter. On the 12th of June, Goner tweeted:
“We’ve received credible information that there may soon be an attack on our social media accounts, using an inside source at @Twitter to bypass our security. We’ve been in contact with Twitter and they confirmed that they have an active monitor on the accounts and security has been escalated. We’re feeling more secure, but please stay safe everyone. And remember there will be no surprise mints”.
Attackers broke into Yuga Labs’ BAYC and OtherSide Discord groups earlier this month. Here, they were able to steal over 145 ETH from users.
