According to data from blockchain analytics firm Nansen, NFT whale Jeffrey Hwang (aka Machi Big Brother) has sold 1,010 NFTs for 11,680 ETH (~$18.6 million) in the past 48 hours. This includes 90 BAYC, 191 MAYC, 112 Azuki and 308 Otherdeed NFTs. Nansen’s simian psychometric enhancement technician, Andrew Thurman, stated that it’s likely “the largest NFT dump ever.”
However, data reveals that Hwang immediately bought back 991 NFTs. According to Thurman, the sale and rebuying is likely a play to book some profits while also conducting “one big wash trade to generate huge Blur airdrop profits.” Thurman also believes that it could be “market manipulation” aimed at creating FUD in the market in order re-buy some NFTs at lower prices.
What are NFTs?
NFTs are non-fungible tokens that represent digital assets like art, music, or in-game items. They're stored on a blockchain—a decentralized ledger that records transactions—and can't be replicated or counterfeited because each one is unique. Think of them like virtual collectibles that can be bought, sold, or traded like any other asset.
The Rise of NFTs
Since early 2020, there's been a boom in the sale of NFTs as more people have become interested in buying and selling virtual assets. The total value of all NFT sales has grown from around $100 million in 2020 to over $250 million so far in 2021, according to NonFungible.com. The most expensive NFT ever sold is a piece of digital art called "Everydays: The First 5,000 Days" by the artist Beeple, which went for $69 million at Christie's auction house in March 2021.
The Market Manipulation Allegations
Thurman's allegations of market manipulation by Hwang are based on the fact that he believes Hwang is trying to create FUD—fear, uncertainty and doubt—in the market so he can buy back some of his NFTs at lower prices. Only time will tell whether or not this is true, but one thing is certain: the world of NFTs is still largely unregulated, which means anything is possible.
The world of non-fungible tokens is still relatively new and largely unregulated, which means there's a lot we don't yet know about how they work and how they'll be used in the future. What we do know is that their popularity is on the rise, with more people than ever before buying and selling virtual assets. And while we may not know everything about them yet, one thing is certain: they're not going anywhere anytime soon.
Juliette Twain: Jun 19, 2023 11:48:10 AM
