Crypto News on May 4: NFT Market Fears, Elon Musk’s been busy, Warnings over BTC-Backed Mortgages

The WSJ Says NFT Sales Are ‘Flatlining’ — But is This the Full Story?

The Wall Street Journal wrote an article claiming that NFT sales have “leveled off” – with daily sales dropping by an average of 92%. While there is no doubt that the market has cooled in recent months, that may not tell the whole story, and DappRadar’s data suggests that demand for irreplaceable tokens has not plummeted as much as the paper suggests. In the past week, 150,000 unique wallets have interacted with OpenSea’s smart contracts. That’s 10 times more than the entire NFT market cited by the WSJ. As exchanges build new NFT platforms – and as OpenSea set a new record for daily trading volume last weekend

Elon Musk Has Dig at NFTs

Is Elon Musk bored? He’s certainly been causing a lot of mischief on Twitter. The billionaire appeared to have a dig at non-fungible tokens by tweeting a common criticism of these often misunderstood assets, writing: “I dunno … seems kinda fungible.” He’s also changed his profile picture to a collage of Bored Apes — causing ApeCoin to surge — with the creator of that image asking the world’s richest man to remove it or give him a credit. Musk’s also suggested that some Twitter users may have to pay a “small cost” in order to continue using the platform.

Crypto Mortgages: Investors Must Be ‘Skeptical’ as They’re Risky, Analyst Warns

An analyst says investors should be “skeptical” about crypto mortgages — and the current economic climate means they’re a risky bet. Jon D. Markman from Weiss Ratings believes house prices and Bitcoin “are unlikely to be winners in the short term” — and this could affect those who take out crypto-backed home loans. A number of digital banks are now allowing aspiring homeowners to use Bitcoin as collateral when they’re taking out a mortgage. He’s worried that red-hot inflation and rising interest rates means we’ll soon see “fewer buyers and low home prices” as the market cools down again. In his view, these products are only a win-win when property and crypto prices are in the ascendancy.

MicroStrategy Suffers $170.1M Impairment Loss on Bitcoin in First Quarter of 2022

MicroStrategy revealed that it suffered a $170.1 million impairment loss on its bitcoin investments in the first quarter of 2022. The business intelligence firm, which owns more than 129,000 bitcoins, has not been immune to the recent decline in value of the world’s largest cryptocurrency. months. An impairment loss is an accounting measure that companies use to disclose how the value of an asset has declined since it was purchased. Quite embarrassingly, this impairment charge actually exceeds MicroStrategy’s total revenue for the period January 2022 to March 2022, which is $119.3 million.

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