Crypto News

Elon Musk Trolls NFT Amidst Otherdeeds’ Buying Frenzy Fizzling Out

Elon Musk appears to take a potshot at NFT by saying “dunno seems kinda fungible,” in a tweet on 4th May. The tech billionaire changed his Twitter profile picture to an image featuring various avatars from the Bored Ape non-fungible token collection, sending the token price of the digital project soaring briefly.

ApeCoin, the token launched by Bored Ape creators Yuga Labs, surged 19% in an hour at around 8 a.m. ET to a daily high of $17.5 following Musk’s profile image change. It has since retraced back and at press time trading at about $15.44.

It’s not known if Musk actually bought a Bored Ape NFT. Nevertheless, The billionaire liked a tweet from Michael Bouhanna, an executive at auction house Sotheby’s, who tweeted

“Happy to send you the original file minted with the buyer’s approval.”

Looks like Musk might have merely right-clicked and saved the picture to make it his profile image.

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Elon Musk Trolls NFT amidst Otherdeeds’ Buying Frenzy Fizzling Out 3

The tweet comes at a time when BAYC’S Otherdeeds Nft sparked a buying frenzy last weekend and led to skyrocketing gas fees on Ethereum.

Yuga Labs, the creator of the popular Bored Apes Yacht Club collections, netted approximately $320 million on Saturday from the launch, making it the biggest sale of its kind. Each buyer paid $5,800 per NFT, plus as much as $6,000 in transaction costs or “gas fees”

Once the initial euphoria wore off, prices dropped prompting backlash from the Twitter community, with some slamming the sale as botched. ApeCoin’s price too registered a surge last week, in anticipation of the sale, before it declined.

NFTs are losing their sheen?

According to DappRadar, trading volume for Otherdeeds was down 68% on Tuesday from a day earlier, despite it being the most traded NFT collection over a 24-hour window.

The NFT market is known for its extreme volatility and has struggled to maintain momentum in secondary markets, and sometimes, in primary markets as well.

One in three NFT collections, on average, have little to no trading activity, according to blockchain analytics firm Nansen. Another third is trading below the amount it cost issuers to mint the tokens. 

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