NFTs in a nutshell: A weekly review

There has been a lot of chatter in all things NFTs this week. BendDAO’s liquidation mechanism is testing blue chip NFTs, a Solana wallet is looking to implement a burning mechanism, and there is potentially a new blockchain on the block for OpenSea.

As always, it’s all in a week of action in the NFT room. Let’s review all the movement of the last week.

This week’s non-fungible token news

BAYC Hits 8-Month Low as BendDAO Liquidations Loom; Punks challenge Apes Floor

Could a lending protocol send the entire NFT market into a downward spiral? That’s a looming question, at least across Crypto Twitter and beyond, as lending platform BendDAO, which allows users to post NFTs as collateral for other assets, has begun to see a wave of liquidations for a number of Bored Ape Yacht Club NFT- is. The sell-offs have already contributed to a challenge for floor managers, as both BAYC and CryptoPunks have jumped between 65-70 ETH in floor price in the last 24 hours. Both projects are some of the most recognizable in the space.

Although relative durability has lasted for BAYC holders, concerns remain that a wave of liquidations could lead to a larger sell-off that is more significant. Take a look at the team’s full report to find out more.

Solana based phantom wallet to allow burning of NFTs

Solana’s Phantom wallet has been working on a tool called “Burn NFT” that appears to reduce fraud on the network. In an announcement this week, Phantom launched a fiery NFT mechanism to help users clear spam and unwanted clutter. Users currently earn small amounts of SOL for each NFT burned.

It is a progressive feature for the major Solana wallet, which faced a backlash after some Phantom wallet holders faced the wallet being drained due to a hack from external software infrastructure. Some have speculated that it was due to vulnerabilities in mobile software.

Anthony Hopkins explores NFTs, collaborates with Orange Comet

British actor Anthony Hopkins is known for his work as an actor, director and producer – but the legendary entertainment powerhouse is the latest to explore NFTs. Despite approaching his mid-80s, Hopkins seems eager to explore space. Last week, Hopkins paired up with NFT marketplace Orange Comet and will launch the ‘Eternal Collection’, his first NFT project – inspired by character archetypes from his long and celebrated career.

Hopkins said around the release that it “offers an incredible opportunity to connect with an audience in a completely different way … I’m probably the oldest guy in the NFT community and on social media, which proves that anything is possible at any age .” Orange Comet adds another major partnership to its growing roster that already includes the likes of the NHL’s New York Islanders, AMC’s Walking Dead and more.

Tencent (OTC: TCHEHY) has been a force in Chinese social media, but faces an end to the road with NFTs as it has shuttered it's one-year-old marketplace, Huanhe, this week. | Source: OTC: TCEHY on TradingView.com

Galaxy Digital: Bored Ape Club has misled buyers on rights

Crypto trader Galaxy Digital released the report “A Survey of NFT Licenses: Facts & Fictions” last week, which states that ownership rights “remain a long way off.” The report even cites the recent transition by NFT project Moonbirds, which went from commercial use to creative commons, or CC0, rights (though not without controversy, as we covered in a recent nut shell. Rights have been a focal point of NFT discussions and dialogues in recent weeks as jpeg owners face harsh realities around where rights start and end with their NFTs.

In addition, the report goes on to state that Yuga Labs (the leader of the Bored Ape and CryptoPunks projects) has the license terms for these powerful projects. While metaverse platforms (such as Decentraland or The Sandbox) are making better progress, digital ownership via NFTs still has a long way to go, the report claims.

Tencent forced to close NFT Marketplace

Chinese social media powerhouse Tencent launched NFT marketplace Huanhe just a year ago, and this week announced an official halt to operations following increased regulatory scrutiny. China’s receptivity to NFTs appears to be static, with trading of tokens banned across the country – with no indication that we’ll see any change anytime soon.

Featured image from Pexels, Charts from TradingView.com

The writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.