The Bored Ape Yacht Club (BAYC), one of the leading NFT collections, experienced significant turbulence over the weekend due to a series of transactions initiated by Jeffrey Huang, also known as Machi Big Brother. Huang sold over 50 Bored Apes in the past few days, with one transaction alone generating 651 Ethereum (approximately $1.2 million) on the NFT marketplace Blur.
Machi Big Brother sale impacts prices of BAYC NFT
The impact of Huang’s sales was evident as the floor price of Bored Ape Yacht Club NFTs, which had already faced pressure in recent months, reached its lowest point in Ethereum since November 2021. In April 2022, the floor price for Bored Ape NFTs peaked at around 152 Ethereum, but it recently declined to approximately 33 Ethereum (equivalent to $62,000), according to NFT Price Floor data.
NFTs are unique digital tokens representing ownership of various items, often digital art. The BAYC collection holds a market capitalization of over $737 million, making it the second-largest collection after Crypto Punks. However, the BAYC collection experienced a partial rebound on Sunday when Huang purchased 14 Bored Apes, including one NFT from the collection for as much as 41 Ethereum (over $77,000). As a result, the cheapest Bored Ape currently commands a price of around $74,000, reflecting a 14% increase in value over the past day, according to NFT Price Floor.
During this time, Huang took to Twitter, announcing that the “best meme wins an ape” and shared an image of himself holding a shotgun as a template for meme creation. These high-profile Bored Ape trades by Huang occurred shortly after blockchain investigator ZachXBT disclosed being sued for defamation by Huang.
The lawsuit stems from an investigative article published by ZachXBT last year, which alleged that Huang embezzled tens of millions of dollars worth of Ethereum from a defunct crypto treasury management platform co-founded by Huang. ZachXBT has described the lawsuit as baseless and an attempt to stifle free speech. In response, he raised over $1 million in donations to support his legal defense. Huang, on the other hand, has vehemently denied the allegations made in the article, claiming unlawful defamation.
NFT market targets rebound following a high-profile lawsuit
The evolving situation surrounding Huang’s transactions and the legal dispute adds to the existing volatility and uncertainty within the NFT market. The Bored Ape Yacht Club, despite experiencing a recent downturn, remains a prominent collection valued at over $737 million. Its future trajectory will likely be influenced by market forces, investor sentiment, and ongoing developments surrounding key players like Jeffrey Huang.
As the NFT market continues to evolve, such instances highlight the need for transparency, due diligence, and a cautious approach among participants. Investors and collectors should stay informed about market dynamics, closely monitor changes in prices, and exercise discretion in navigating this rapidly evolving landscape.
The BAYC NFT collection experienced price turbulence due to the flurry of transactions initiated by Jeffrey Huang. While the collection faced a decline in floor prices, Huang’s subsequent purchases contributed to a partial rebound. The impact of these events underscores the volatility and challenges inherent in the NFT market. As the market evolves, participants need to remain vigilant and make informed decisions to navigate this dynamic and ever-changing landscape.
