The non-fungible token (NFT) market will likely encounter another massive test, with bearish challenges continuing to deteriorate floor prices. The recent scrutiny will involve a legal fight now.
Nathaniel Chastain, former OpenSea manager, latest stated that the US plans an example after condemning him for insider trading. Meanwhile, Chastain’s legal team wants to challenge the case and dismiss the alleged charges.
Let’s Meet in Court
Reuters report suggests that the United States accused Chastain of purchasing 45 NFTs on eleven separate events based on close info. Moreover, he invested in assets NFT creators introduced before they arrived on OpenSea.
Prosecutors stated that Chastain selected non-fungible tokens to feature before selling his NFTs upon featuring, generally 2-5X the buy price. Chastain’s lawyers said the authority resorted to an instant prosecution utilizing baseless criminal applications to ensure precedent within the crypto space.
While adopting this unique prosecution to theorize insider trading assertions, money laundering, and property theft, the authority’s urgings remain contrary to the previously settled instances and show determination to plant a flag within the blockchain industry.
Bearing the Long Drag
Meanwhile, the non-fungible token lending platform BendDAO suggested policies to support the ecosystem. Recent reports show the protocol has only 12.5 wrapped ETH, worth more than $23K to pay its 15K ETH debt.
Analysts attribute various reasons to the NFT market crash. Multiple high-profile NFT collections witnessed slumps in floor prices, escalating the macro-woes within the global monetary system. The proposal will likely pass as nearly 97% of voters favor the motion.
What About Data?
Data charts also reflect the NFT market collapse. Indeed, the NFT space posted a remarkable volume in Jan – Feb 2022. However, it could not sustain such strength amidst the worsening market conditions externally and internally.
The swift plunge in sales volume remained visible since May 2022. The index hovered beneath $600 million on May 1. However, the Three Arrows Capital liquidations, Luna debacles, and other events impacted the market heavily.
Meantime, the NFT industry can’t record even $50M on 24hr volume charts. There aren’t massive fluctuations in new wallets in the NFT space. That remains visible in the charts, with unique addresses remaining stagnant during the bear market.
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