In the dynamic world of NFTs, a clever trader recently pulled off a strategic move that earned him a staggering $1.5 million. Hanwe Chang, a well-known YouTuber and NFT trader, noticed that a rival bot was copying his bids on the NFT marketplace Blur. Instead of being deterred, Chang decided to turn this situation to his advantage and devised a plan to outwit the bot. His tactical maneuver showcases the innovative strategies traders are employing in the NFT market to capitalize on opportunities.

However, not all is rosy in the NFT market. July saw a decline in volumes, with sales volume in U.S. dollars dropping by nearly 42% over the month. Daily sales volumes decreased from $22 million to $12.8 million by the end of July. Additionally, royalties from NFTs have also experienced a downturn, raising questions about the market’s sustainability and potential implications for creators and investors.

Furthermore, the NFT market has faced challenges related to theft and security. While NFT-related thefts have slowed down in July, some incidents have raised concerns over the legal implications and the need for robust security measures.

Amidst these developments, Gary Vee’s NFT project, VeeFriend’s, has taken a unique approach by partnering with Reebok to release a limited edition sneaker collection exclusively for holders of an alpaca-related NFT from the collection. This move illustrates how NFT projects are exploring innovative ways to engage their communities and create unique experiences.

The NFT market’s fluctuations and the evolving regulatory landscape present both challenges and opportunities for participants in the space. This article delves into the strategic move by Hanwe Chang, the decline in NFT volumes and royalties, the slowdown in NFT-related thefts, and the creative endeavors of the VeeFriend’s project.

Hanwe Chang’s Strategic Move

Hanwe Chang, a prominent YouTuber and NFT trader, identified that a rival bot was copying his bids on the NFT marketplace Blur. Instead of attempting to thwart the bot directly, Chang saw an opportunity to use this situation to his advantage. He purchased multiple Azuki NFTs from a separate, anonymous wallet, all of which shared the same background color. He then placed an inflated bid on these NFTs from his publicly-known hanwe.eth wallet, knowing that the bot would automatically copy the bid.

Once the bot copied the inflated bid, Chang accepted it from his anonymous wallet and sold the NFTs at a significant markup, earning himself 800 Ether (ETH) or approximately $1.5 million. This strategic move not only showcased Chang’s ingenuity but also raised questions about the legality of such tactics and potential implications for the owner of the rival bot.

Legal Implications and Discussion

The move by Hanwe Chang has sparked discussions over the legality of such strategies in the NFT market. The owner of the rival bot, operating under the name elizab.eth, responded by claiming that the funds were stolen and offered a 10% bounty for their return. This response suggests that elizab.eth may have legal claims to retrieve their ETH through litigation.

Gabriel Shapiro, a lawyer, weighed in on the situation, stating that elizab.eth may have legal claims based on traditional legal principles such as conversion or unjust enrichment. However, the complexities of the NFT market and the evolving regulatory landscape make such cases challenging to navigate.

NFT Market Decline and Royalties Downtrend

In the month of July, the NFT market witnessed a significant decline in volumes. According to data from NFT aggregator CryptoSlam, the sales volume in U.S. dollars decreased by nearly 42%. Daily sales volumes dropped from $22 million to $12.8 million by the end of July. This decline comes after a notable rally in late June, where daily volumes peaked at nearly $58.5 million.

Additionally, royalties from NFTs have also experienced a downtrend. Just 9.4% of the 699,816 ETH in royalties paid to NFT projects occurred in the first half of 2023. The effective fee rate for royalties dropped from an average of 2.5% in 2022 to 0.6% in July 2023. This decline raises concerns about the potential implications for creators and artists who rely on royalties for their work.

NFT-Related Theft Slowdown

Despite the challenges faced by the NFT market, one positive development is the slowdown in NFT-related thefts in July. Blockchain security firm PeckShield reported that around $1.7 million worth of NFTs were stolen in July, a 31% decrease from June. Most of the stolen NFTs were quickly sold on marketplaces such as Blur and OpenSea.

This decline in theft incidents is a positive sign for the NFT market, but it also underscores the importance of robust security measures to protect the assets of NFT creators and investors.

Innovative Endeavors: VeeFriend’s and Reebok Collaboration

Amidst the challenges faced by the NFT market, VeeFriend’s, the NFT project of Gary Vee, has taken an innovative approach by collaborating with Reebok. The project released a limited edition sneaker collection exclusively for holders of an alpaca-related NFT from the VeeFriend’s collection.

The sneaker features the original hand-drawn version of VeeFriend’s alpaca NFT on the tongue and the project’s logo in place of Reebok’s logo. This partnership showcases how NFT projects are exploring creative ways to engage their communities and create unique experiences beyond the digital realm.

Conclusion

The NFT market is characterized by its rapid evolution, innovative strategies, and regulatory challenges. Hanwe Chang’s strategic move, which earned him $1.5 million, exemplifies the creativity and ingenuity of traders in the NFT space. However, legal discussions over the move raise questions about the implications of such tactics and the need for clear regulations in the NFT market.

Furthermore, the decline in NFT volumes and royalties in July and the slowdown in NFT-related thefts present challenges for the market’s sustainability and security. As the NFT market continues to evolve, participants must navigate the complexities of compliance and innovation while safeguarding the interests of all stakeholders.

On a positive note, the collaboration between VeeFriend’s and Reebok showcases how NFT projects can explore innovative ways to engage their communities and create unique experiences. As the NFT market adapts to changing circumstances, market participants, creators, and investors will continue to shape the future of the vibrant and dynamic NFT ecosystem.