NFT Market Takes Huge Hit, Bored Ape NFT Prices Crash 25% In A Day

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Third Bored Ape hack since April

Just as the broader cryptocurrency market tanks under the $1 trillion mark, the non-fungible tokens (NFT) market also takes a big hit. As per the Bloomberg report, the NFT Index, tracking the performance of NFTs and weighted by each NFT’s circulating supply, corrected by 23% on Monday.

Even the celebrity-favored Bored Ape Yacht Club (BAYC) saw prices of its NFTs crashing by 25% on the Monday market crash. This is a huge drop considering that several of the BAYC NFTs traded for millions of dollars each over the last few months.

The global macro setup has been one of the key drivers behind this market crash. Last week, the U.S. CPI inflation data topped 8.6%. To control this, analysts are expecting that the U.S. Federal Reserve will soon announce a 75 basis points surge in interest rate. This could have an overall negative impact on the U.S. economy with chances of slipping into recession.

Just like the broader crypto market, the NFT market is also facing a major crunch this week. However, the NFT market still remains a bright spot in comparison to the overall crypto market. Tops NFT projects have seen substantial demand this year in 2022 despite the broader market correction. As per the 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.

Beware of Hackers, Bored Ape NFT Holders

Gordon Goner, the pseudonymous co-founder of Bored Ape’s parent firm Yuga Labs, has issued a warning of a possible exploit of their social media accounts, especially Twitter. Last Sunday, June 12, 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”.

Earlier this month, attackers managed to breach Yuga Labs’ BAYC and OtherSide Discord groups. Here, they managed to steal more than 145 ETH from users.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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