LONDON, May 21 Reuters This weeks cryptocurrency price plunge eroded the dollarbased value of NFTs and raised the cost of buying and selling them, in what could be a setback for the burgeoning digital asset market. But NFT collectors are not bailing out.
Nonfungible tokens a way of trading digital assets by recording their ownership status on blockchain exploded in popularity in February and March this year, notching up hundreds of millions of dollars in sales.
The sudden boom is partly attributed to 2020s crypto price surge; NFTs are usually bought with the cryptocurrency ether or dollars.
But the crypto market hit a roadblock on Wednesday when as much as 1 trillion was wiped off the global crypto complex and prices for ether and its larger cousin bitcoin fell 3040.
NFT prices are normally listed on marketplaces in ether, meaning sellers may adjust prices higher to keep them constant in dollars. But with ether still trading a third off recent record highs, NFT values in dollars will have fallen sharply.
A collector who goes by the pseudonym Pranksy said his cryptocurrency portfolios worth dropped by more than 10 million at one point on Wednesday.
But he said he did not see his collection of more than 100,000 NFTs as less valuable because he had not sold them.
The people who spent many thousands on NFTs arent going to sell them for 50 off tomorrow, at least not many are. Much like traditional art markets bucking Wall Street trends I believe many see certain…