NFTs started December with impressive sales, a Brooklyn investigation revealed fraudulent marketplaces, and Magic Eden's token faced launch challenges.
NFTs Excel in Early December
NFTs performed well at the beginning of December, with $187 million in weekly sales for the first week. This surpassed November's best week, which reached $181 million. Ethereum led the top blockchains with $92 million in sales, marking a 44% increase week-on-week. Ethereum-based collectibles like CryptoPunks and Pudgy Penguins showed strong performances with increased weekly volumes and floor prices.
Brooklyn DA Closes Fraudulent NFT Sites
An 85-year-old artist was scammed out of $135,000 after a scammer posed as an art dealer and convinced him to list his artwork on a fake NFT marketplace resembling OpenSea. The scammer claimed the victim earned $300,000 but needed to pay a $135,000 fee to access his funds. The artist used retirement savings and loans, leaving him "emotionally and financially devastated," according to the DA's Virtual Currency Unit. In response, the fraudulent domains were shut down and the scheme was publicized to the community.
Challenges for Magic Eden’s ME Token
Magic Eden’s new crypto token faced value drops amid user complaints about mobile app bugs and a complicated claiming process. On December 10, the Magic Eden (ME) token opened at $6.70, surged to $13.10, then dropped to $4.30, losing 67% in value. The price slightly recovered to $5.16 at the time of writing, according to Dexscreener data.
As NFTs enjoy a strong start to December and Brooklyn investigates fraudulent schemes, the industry faces challenges with technical glitches and scams. Nonetheless, NFTs continue to evolve, offering unique opportunities for artists.
