- BAYC is considered as the most popular NFT collection by folks.
- Recently, an event involving BAYC NFTs led an organization towards liquidation.
- The Bored Apes collection is sitting at its lowest floor value in the past 8 months.
Bored Apes Missing Fun Times
The monkeys of Bored Ape Yacht Club (BAYC) are going through some harsh times currently. In the recent news, the floor price of the famous NFT collection has gone down to 67 Ethereum. This is the lowest floor value the digital collectibles has witnessed in the past 8 months. The massive downfall is the result of a recent near liquidation event concerning BendDAO.
BendDAO is a platform where holders are able to borrow loans by offering their non-fungible tokens as collateralized assets. The platform supports other NFT collections too including tokens from CryptoPunks and Cool Cats collections. The NFTs on this project were standing at the verge of liquidation where the reserves went from 1,000 wETH to just 5 ETH.
NFTs are considered as the cousin sisters of cryptocurrencies, but they are non-fungible. People can easily exchange crypto assets in exchange for other crypto assets, but this is not the case with the NFTs. An individual can transfer it to another account free of cost, or the buyer eventually has to pay a certain cost to take over the token.
As of this publication, the most popular NFT collectible’s floor value was sitting at a low of 67 Ethereum. Other channels from the Bored Ape Yacht Club are going through tough times too. Their sisters, Mutant Apes’ floor value was sitting at 12 Ethereum at the time of this publication, a major downturn since January 2022.
BendDAO participants issued a proposal following the tumultuous event. Where they apologized for underestimating how illiquid non-fungible tokens can get in the bear market. The proposal included parameters to be set for operating the protocol and developing confidence among the Ethereum depositors.
The organization offered a 48-hour amnesty program which bought borrowers time to rescue their funky monkeys and other NFT collectibles via loan repayment and penalties. Holders of BEND, the indigenous token of the BendDAO had cleared the proposal of the quorum where majority of members voted in favor of the decision on Monday.
When folks look closely, BendDAO operates similar to a traditional bank, where depositors make deposit collateral to acquire loans.
Source: https://www.thecoinrepublic.com/2022/08/25/bayc-sitting-at-lowest-floor-price-in-8-months/