If you have heard about NFT, you may have heard that almost thousands of NFT collections are launched on different marketplaces nowadays. As the NFT space is more extensive and many people are investing in this space, the number of NFT collections released each day also increases quickly. However, it is the ultimate truth that almost 90% of the NFT collection launching today will not remain in the future.
Recently, another disaster happened when Cereal Club NFT collection’s public mint doesn’t as per plans, and their team eventually paused the minting, which created much frustration among the community. They took on Twitter to explain that they were fixing a site fetch issue, so they paused the mint. However, the NFT community doesn’t seem to accept this explanation and accused the team of pausing the auction to manipulate prices on OpenSea marketplace, the world’s largest marketplace.
Cereal club NFT
Cereal club NFT is a collection of cereal-inspired digital artwork similar to Doodles NFTs with a cereal bowl as its head. The team thought they wanted the NFT collection to be playful as the cereal bowl pays homage to the simpler time in our lives when we used to enjoy our comfort food while watching television as kids. They have over 143,000 followers on Twitter, making this NFT collection one of the most excited NFT collections of this month. However, their public mint didn’t go as expected, and it turned out to be one of the other horror stories in the NFT space, leaving the community very disappointed.
How does this happen?
Firstly, the team announced that they would do a Dutch-style auction at 1 ETH. Dutch-style considers all bids before arriving at the selling price and then gradually dropping at a specific period. So, the mint started at the high demand NFT started at 1 ETH and lowered 0.1 ETH every 10 minutes until people began to buy the NFTs. The auction takes a rough turn here, and the community started FUD at Discord. The team changed their price to 0.5 ETH, which was a big dive from the original price, drastically dropping the floor. Then, the team responded by pausing the auction and changing the floor price to 0.35 ETH, which raised many questions in the community. They were confused that why there were issues in the mint when the smart contract was adequately locked in.
However, it is essential to note that the floor price on the OpenSea marketplace is just 0.198 ETH which is very far from the community’s supposition. Many people in the community say that the team is waiting for the floor price to rise in the hopes of people minting at the higher price. There is a lot of news coming out that the team is fake buying their own NFTs so that the floor price of the NFT would increase.
There are many reports which are saying that this NFT project is a scam. A popular account, NFT Ethics, a Twitter account that aims to deliver legitimacy and scrutiny of NFT collection, has also termed this project a scam. Also, this project is on a banning spree on Discord.