In what may be a setback for the emerging digital asset industry, this week’s cryptocurrency price drop weakened the dollar-based value of NFTs and increased the cost of purchasing and selling them. NFT collectors, on the other hand, are not bailing out.
Non-fungible tokens (NFTs) became common this year as a way to exchange digital arts and collectibles while keeping track of their ownership status on the blockchain.
The previous week, however, was a rollercoaster ride in the crypto world. The sector has experienced a significant downturn, beginning with Elon Musk’s tweets about Tesla suspending vehicle purchases using Bitcoin or China banning financial and payment institutions from the cryptocurrency business. As a result, the price of Ethereum and Bitcoin fell by around 30%-40%.
An NFT collector who goes by the pseudonym Pranksy said the value of his cryptocurrency portfolio dropped by more than $10 million at one point on Wednesday.