Should NFT projects buy back their NFTs in crypto winter? Nouns DAO offering 35.5 ETH to disgruntled owners who “rage quit” Nouns
nftjedi
The Nouns NFT project was one of the most innovative projects. It adopted a unique model of selling one new Nouns NFT a day–to my knowledge, not replicated by any other project. And it also adopted the Creative Commons 0 license, abandoning all copyrights in their Nouns characters.
The project has been quite successful, including engaging in a partnership with Anheuser Busch, which included the Nouns signature square glassses in a Super Bowl ad two years ago.
Well, I was pretty surprised to learn that all is not well with the Nouns project. Apparently a vocal faction of Nouns holders have convinced the Nouns DAO to buy back their NFTs at 35.5 ETH ($55,359)!!
During the boom in NFTs, the mint price for a Nouns NFT was easily over 75 ETH. But the crypto winter has decimated the floor price for virtually all projects except for the CryptoPunks. [More from Coindesk.]
I think the Nouns DAO should also stop minting new NFTs, at least for the time being, if not permanently. That will help to stop the dilution in the value of the existing Nouns NFTs.
And, if utility NFT projects are deemed to be unregistered securities, they might be required to buy back their NFTs. See our prior post here.
~40% of Nouns are quitting the DAO and claiming a refund
Noun #1 sold for 613 ETH in August '21 ($1.9M at the time)
Now Nouns are only going for around 35 ETH ($40k)
Some holders think the $30M treasury is being thrown out the window
in some ways the nouns fork is an accelerated version of what happened with blur. liquidity speeds up the inevitable because people don’t have to conceal their moves or do them in slow motion to save money. clean house quickly and then get back to building…
