“Machi Big Brother,” one of the largest nonfungible token (NFT) whales, has made a record-breaking dump of 1,010 tokens, totaling 11,680 Ether, or roughly $18.6 million, over a 48-hour period. According to data from Nansen, this could be the largest NFT dump ever recorded.
The dumping of NFTs included 90 Bored Ape Yacht Club (BAYC) tokens, 191 Mutant Ape Yacht Club (MAYC) tokens, and 308 Otherdeed NFTs, among others. However, Machi quickly repurchased 991 NFTs after the dump, prompting speculation that the move was either to book some profits or conduct market manipulation.
Machi is reportedly one of the biggest receivers of the BLUR token airdrop from the upstart NFT marketplace, Blur. The platform recently surpassed OpenSea as the top-ranked NFT marketplace in terms of trading volume. Machi could be looking to increase their BLUR holdings by ramping up NFT trading activity, while other whales may be doing the same.
The dumping of NFTs by Machi has caused a decline in the floor prices of top collections such as BAYC, MAYC, and Otherdeed NFTs. According to data from NFT Price Floor, these tokens have seen a drop of 7.77%, 9.2%, and 8.16%, respectively, in the past 24 hours.
The NFT market has been experiencing rapid growth in recent months, with the value of NFT sales reaching $10.7 billion in 2021. However, this growth has not been without controversy. Some experts have criticized the environmental impact of NFTs, as their creation and sale require a significant amount of energy.
Furthermore, the market has also been plagued by issues such as market manipulation and fraudulent sales. The recent NFT dump by Machi has raised concerns over the potential for market manipulation by whales in the NFT space.
As the NFT market continues to evolve, it is essential for market participants to consider the potential risks and challenges associated with the space. The regulatory environment around NFTs is still uncertain, and market participants must ensure that they comply with applicable laws and regulations.
The NFT market remains an exciting and rapidly evolving space. However, it is important to be aware of the potential risks and challenges associated with this emerging asset class. Market participants must exercise caution and due diligence to avoid potential pitfalls and ensure the long-term sustainability of the NFT market.