The floor price of the Moonbirds non-fungible token (NFT) collection fell by a quarter of its initial value after a whale decided to sell 500 NFTs on its own. While her motives remain unknown, it’s most likely a reaction to a tweet from the project team who revealed they were exposed to Silicon Valley Bank.
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500 NFT Moonbirds sold at the same time
Yesterday, Saturday March 11, a whale sold 500 non-fungible tokens (NFT) from the Moonbirds collection on the Blur Marketplace for a loss of more than 717 Ethers, or more than a million dollars at the current price. The seller of these Moonbirds suffered losses of between 9 and 33%, with more than 200 NFTs sold with a loss of more than 32%.
Figure 1 – Activity of the affected Ethereum address on the Blur platform
The address concerned no longer holds any NFT on the Blur platform, and its wallet now contains less than 2 dollars in the form of platform tokens. However, we can see that this same address transferred 1,334 ETH to another walletwhich also holds high-value NFTs from the CloneX, Cool Cats and Pudgy Penguins collections.
Figure 2 – Overview of NFTs held on the second wallet
Following this sale, the floor price of the collection fell by more than 26% over 24 hoursdropping from over 6.37 to just over 4.3 ETH.
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Why such a massive sale?
Although we do not know the precise motivations of the person behind this sudden and massive sale, the timing matches a tweet from PROOFthe team behind the design of the Moonbirds collection and the Moonbirds Oddities, who said they have exposure to Silicon Valley Bank.
1/5: A statement from the PROOF team regarding SVB:
Many of you have seen the headlines this morning about the Silicon Valley Bank closure. The most important thing to us—in both good times and bad—is to communicate with our community proactively and transparently. 🧵:
— PROOF (🥃,🦉) (@proof_xyz) March 10, 2023
While some wanted to thank PROOF for its transparency, others on the contrary pointed out that the project team was careful not to specify the extent to which it was exposed to the troubled bank. PROOF ensures, however, that this exposure will have no impact on users’ wallets or on the project’s roadmap, and that its funds were “diversified”, in particular in Ethers (ETH) and stablecoins.
However, as one Twitter user pointed out, PROOF is not necessarily transparent as its cash is not visible on-chain. As such, it is therefore possible that its funds are hosted in banks or centralized exchanges (CEX).
Beyond the cash management of the teams behind Moonbirds, it turns out that the project would not necessarily have added value for the holders of its long-term NFTs.
Indeed, after having passed its NFT under Creative Commons license last August (without asking the opinion of its community and contrary to what was planned), PROOF also canceled physical events that were supposed to bring together NFT holders in the form of exclusive encounters.
Figure 3 – Evolution of the floor price of the Moonbirds collection since its creation
Thus, given the timing of events, it is likely that the seller of the 500 NFTs cited here made his decision in view of PROOF’s exposure to SVB, but also due to a lack of long-term vision of the project in addition to the non-respect of the initial announcements promised to the holders of the collection.
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Sources: NFT Price Floor, Blur
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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