Since coming to prominence in 2021, the non-fungible token market has been experiencing exponential growth and traction among institutions, users, and enterprises. However, even in the nascent NFT sector, there were some controversies that could not be ignored. In this article, we will take an in-depth look at why some NFT investors are dumping NFTs despite the recent resurgence of the NFT market.
In a January 30 blog post, Lamboland, an NFT investor and head of growth at gaming studio World Largest, shared concerns about some NFT investors who are abandoning holding non-fungible tokens in recent months despite a retest of the NFT market. There have been some surges in recent weeks.
The dark side of NFTs:
Why the biggest whales are calling for web3 game projects🧵👇
(1/13) pic.twitter.com/dh71DUBQKO
— Ramboland (@LambolandNFT) January 30, 2024
1. AOFverse NFT Collection
Earlier this week, non-fungible token influencer and investor Dingaling shared that he sold all 143 AOFverse NFTs for a loss of $140,000. This was the first time Dingaling ditched his NFT collection and posted about it on X (formerly Twitter). So what happened?
abandoned 143 @AOF Bus Overall, ~60E has been lost due to Founder Keys since the team’s latest update.
I usually leave the NFTs in my wallet at 0, but teams like this that don’t value their community don’t belong in Web3. Why are you launching an NFT collection?
Good luck 👋
— Dingaling (@dingalingts) January 29, 2024
Last week, the AOFverse NFT team announced details about the $AFG token, causing the floor price to plummet. This announcement left many investors dissatisfied as they would only receive 1% of their supply from TGE and 0% of their unlocks. Moreover, contrary to many investors’ expectations, it will take more than 20 months for all tokens to be released.
2. Valhalla NFT Collection
Valhalla, an animated non-fungible token project that aims to bring gamers from around the world together to build a community, is another NFT project that left investors with no choice but to dump their NFTs. Valhalla recently released a keyboard that NFT holders can purchase, much to the displeasure of many investors.
In 2022, Valhalla raised $15 million from Pantera Capital, Comcast Ventures and other high-profile investors, promising investors it would create a Twitch competitor. The NFT project also raised an additional $5.4 million through NFT sales. However, according to the community, they have not delivered anything of value to the community in the last 18 months.
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