NFTs Might See Selling Pressure In December, Crypto Expert Warns
2021 has been an amazing year for NFT projects, such as NBA Top Shot and CryptoPunks. However, December might see some downtrend for NFTs, according to an expert.
After some dips and dives, along strong resurgence in many major NFT projects across the past 8 months, what lies might come as a surprise to many.
Capriole Investments founder Charles Edwards believes that the close of the year as a potential NFT winter. Let’s take a look at what we’ve seen so far, and what could be ahead of us.
Possible NFT Winter
In a recent tweet, Edwards makes a good point, pointing out that the gains in NFTs this year have absurd. While crypto communities often possess “diamond hands”, it’s not that far fetched to think that many will look to secure taxable gains before the end of year:
Expecting a bit of an NFT meltdown in December.
Huge amounts of money were made in NFTs this year. People will need to book profits for end of year tax.
The dialogue in Edwards’ tweet thread replies makes for an interesting reading on the logic of buying and selling. Many seem to believe that much of this selling pressure has already happened. Edwards replies, “you think it’s done?” Others believe that the sellers are going to be selling losers – not winners.
Will selling take place with big projects to realize gains? Or will middling to lower-level NFT projects be the most subject to selling pressure? Many would suggest that the Bored Apes and CryptoPunks of the world won’t be subject to this sort of selling pressure. The logic behind this being that those have been exceptional winners this year with unparalleled returns. Keeping this in mind, why would anyone sell when the future is bright?
No one knows what what will happen, and it’ll likely be a test of the strength of the long-term belief system behind NFTs.
