{"id":52757,"date":"2023-03-13T16:47:56","date_gmt":"2023-03-13T16:47:56","guid":{"rendered":"http:\/\/pley2win.com\/metaverse\/what-is-happening-with-the-moonbirds-floor-price\/"},"modified":"2023-03-13T16:47:56","modified_gmt":"2023-03-13T16:47:56","slug":"what-is-happening-with-the-moonbirds-floor-price","status":"publish","type":"post","link":"https:\/\/pley2win.com\/?p=52757","title":{"rendered":"What is Happening with the Moonbirds Floor Price?"},"content":{"rendered":"
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The Moonbirds NFT collection had a volatile weekend.\u00a0 Their floor continued its steady downtrend and hit a low right around 4 eth on Saturday.\u00a0 So what happened with Moonbirds that caused this price action?<\/p>\n
What happened with the Moonbirds floor?<\/strong><\/span><\/h2>\n
Proof, the parent collection of Moonbirds, tweeted that their ecosystem holds a portion of their treasury at the now-defunct Silicon Valley Bank.\u00a0 They claimed to have diversified their funds across different places, however, did not disclose exact amounts at first.\u00a0 The Proof Twitter account stated, \u201cProof holds cash at SVB, however\u2026 We\u2019ve thankfully diversified our assets across ETH, stablecoins, as well as fiat\u2014so financially and operationally, we\u2019re going to be OK.\u201d<\/p>\n
The community reaction was immediate and severe.\u00a0 Many prominent holders asked for more clarification on just how much of the project\u2019s treasury had potentially been lost.\u00a0 Given the amount of money the project had raised from the Moonbirds mint, royalties, and VC funding, there was a real fear that the losses could be catastrophic.<\/p>\n\n<\/picture>\n\n<\/picture>\n<\/noscript>Depeche Node, a well-known NFT collector, asks for more transparency on potentially lost treasury funds Image Credit: Twitter.com<\/figcaption><\/figure>\n
Kevin Rose, CEO of Proof, even tweeted that he was seeing Moonbird buyers get bullied on the Twitter timeline.\u00a0 While possibly true, the idea that people were getting shamed for buying into the project didn\u2019t exactly lend itself to any positive attention in a market that primarily functions as an attention economy.<\/p>\n
How did Blur farming contribute to the panic?\u00a0<\/strong><\/span><\/h2>\n
To make matters worse, the news came at unfortunate timing for Moonbirds thanks to unusual market activity caused by Blur farming.\u00a0 One whale had been mass-bidding on Moonbirds last week to farm the upcoming Blur airdrop.\u00a0 This person artificially inflated the price of the collection over 6 eth by accumulating 499 Moonbirds.<\/p>\n
After the SVB announcement, the trader began dumping their entire collection to bids as low as 3.94 weth on Saturday.\u00a0 By the end of the weekend, the Blur farmer had sold their last Moonbird and suffered about 700 eth in trading losses in the process.<\/p>\n
Why did the Moonbirds floor price rebound?<\/strong><\/span><\/h2>\n
Kevin Rose, the CEO of Proof, disclosed on Sunday that less than 50% of their treasury is held in SVB.\u00a0 This announcement came after the Department of Treasury, FDIC, and the Federal Reserve released a joint statement promising to protect depositors\u2019 assets.\u00a0 By guaranteeing these funds, the government ensured that the Moonbirds team will be able to execute their roadmap.<\/p>\n\n<\/picture>\n\n<\/picture>\n<\/noscript>Kevin Rose tweeted that Proof treasury funds \u201care safu\u201d Image Credit: Twitter.com<\/figcaption><\/figure>\n
The community rallied behind the project and took advantage of discounted floor price following the news.\u00a0 The floor price currently sits at 4.80 eth, up about 20% off the lows on Saturday.<\/p>\n
What is the future for Moonbirds?<\/strong><\/span><\/h2>\n
Project leaders Kevin Rose and Justin Mezzell held a Q1 update recently.\u00a0 They promised to focus on art at their \u201cnorth star\u201d moving forward.\u00a0 To that end, they scrapped their metaverse art gallery project Highrise and announced the cancellation of nesting rewards, a longtime project hallmark that rewards holders for not listing their Moonbirds for sale, after their next reward.<\/p>\n\n<\/picture>\n\n<\/picture>\n<\/noscript>Floor listings for Moonbirds on OpenSea Image Credit: OpenSea.io<\/figcaption><\/figure>\n
Will the Proof team be able to return the Moonbirds collection to its previous position as a top-3 NFT collection?\u00a0 We will soon find out, but now that their funds held in Silicon Valley Bank are protected, they will at least have the funding to take a shot at it.<\/p>\n
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