The market for non fungible tokens (NFTs) is in flux. Trading volumes have collapsed since the start of the year as the crypto winter rolls on. In the past 30 days alone, the average price of a Bored Ape Yacht Club NFT — think monkey avatars with sailor hats and gold teeth — has dropped by a fifth according to blockchain tracker DappRadar. The price of ApeCoin, the cryptocurrency linked to Bored Apes, has fallen 80 per cent since May.
Some companies once enthusiastic to hitch their wagon to the latest tech buzzword are shelving plans. Assassin’s Creed video game publisher Ubisoft talked up the idea of a digital market only to say that it was just researching ideas. This week, news network CNN shut its marketplace for tokens of “news moments”.
Hobbyists may be getting out just in time. NFTs are often bought in cryptocurrencies. Criminal activity in crypto reached a new high this month, according to blockchain analysis firm Chainalysis. But they might benefit if regulators step in to oversee the market. The US Securities and Exchange Commission is reported to be investigating whether NFTs sold by Yuga Labs, creator of Bored Ape Yacht Club, are securities.