Despite the crypto crash, Ragnarok got to 3 ETH and PXN got 4.5 ETH pre-reveal. However, these values quickly fell by 60% in the four days post-reveal. One NFT Twitter detective explained it all.
Why did PXN and Ragnarok’s values plummet?
According to @punk9059, or NFTstatistics.eth, both the PXN as well as the Ragnarok crash are due to pump-and-dump tactics pre-reveal. NFTstatistics.eth uses other projects that have experienced a similar crash, including Los Muertos World, Shinsekai Portal and EightBitMe.
According to NFTstatistics.eth, “It’s an unforgiving time. All these sets below have minted in the past 2 months; pumped & did 450+ ETH volume in one day got floor above 0.5 ETH but now floor down 50%+; less than 20 ETH of daily volume.”
NFTstatistics.eth continued: “In a low-FOMO market: Sell anticipation when you are blessed with it. Pre-reveal NFTs or NFTs that have upcoming airdrops. Enjoy the pump but sell before the news. If you’re excited about something, wait till the reveals to buy.”
Other Twitter users commented saying that people should wait until the market recovers before buying anything. Others suggested collections and projects should focus on roadmaps instead. One user even went as far as to point out that anime NFT collections PXN and Ragnarok have failed due to wash trading.
The crypto crash and NFT projects
Undoubtedly, the crypto crash has had a significant impact on NFT projects, especially nascent ones. Morgan Stanley predicts an NFT crash. This is because NFTs are the next most speculative and leveraged sector. In addition, some of the most popular NFT collections have declined in price. According to CryptoSlam, the weekly NFT trading volume has fallen from $1.07 billion in August 2021 to $23.6 million in May 2022.
However, not all is doom and gloom. According to DappRadar, Rarible trading volume increased by 18%, while OpenSea transaction volumes increased by 8% in the last 30 days. Therefore, a well-thought-out NFT project with a solid roadmap and community can indeed survive and thrive despite the current crash.