Dogechain NFT market in a mess, buy high and sell low is the new normal

The hype about the Dogechain NFT market has faded out too quickly than expected, living a lot of people having their funds locked up in jpegs without a hope of getting them back. The Dogechain NFT market is in a static state at the moment. Activities on the chain have been on a decline over the past few weeks, with the majority of the investors looking for an exit. It would appear that the dogechain NFT market is destined to fail.

There are many reasons for this, that we will discuss in this article, to help understand the market dynamics and why investors are looking to exit their NFT positions.

Low liquidity on the chain

Since the Dogechain bridge witnessed a hack attempt sometime last month, there has been a considerable decline in activity, and the volume on the chain has also gone down with no newcomers. Most of the investors who were active in this market, since the very beginning of the chain, are now exiting their positions.

This means that there are not enough buyers and sellers on the market to keep it functioning properly. The reason for this is the low liquidity on the chain.

Only a few investors are participating in the NFT market which increases the chances of a situation like what happened with the smartBCH chain a couple of months ago. A situation that had a snowball effect on the entire ecosystem.

The NFT market is a high-risk market, therefore the higher the volume on the chain, the lower the risk.

Frequency of rug-pulls and scamming projects

The Dogechain NFT market is plagued by scams and rug pulls regularly. The way scammed NFTs projects are been promoted and the frequency of rug-pulls has resulted in an environment of fear and panic. A large proportion of the investors are staying away from the Dogechain NFT market as a result of scam games being played by NFT project owners in this ecosystem.

The only time that we have seen any NFT project sell out quickly is now in the past. People are becoming very skeptical about any new NFT project as a result of a large number of scam projects in the market.

New investors are having a hard time making money in the Dogechain NFT market as a result of the rise in the chances of a scam in the ecosystem. Lots of money has been lost to scammed projects and investors now avoid new projects like leprosy.

Buy high and sell low

This may seem funny, but it's one of the reasons why I think the Dogechain NFT market is moving on a declining path. The Dogechain NFT market is the first place I have seen people buying NFT at a high price and reselling them at a low price. Even if someone wants to get some liquid to invest in another project, it doesn't have to come lower than the level being experienced on the Dogechain.

It's common to see loads of NFTs being sold below the mint price in the secondary market. This is not because people want to sell NFTs, but because of the fear of the scam.

Moreover, the NFT project owners are also part of the problem. When a project chooses to pay the team with NFTs, they will inevitably dump them immediately after the mint to get their payback. These types of NFT projects are the main reason why the Dogechain NFT market is not as liquid as it should be.

Almost all the projects I knew that got sold out quickly are the ones affected by the below-mint floor price in the secondary market, and these projects are as good as dead or abandoned.

This kind of stuff adds to the fear in the NFT market which is already severely depressed and due to other factors like low liquidity on the Dogechain, the supply and demand balance is distorted.

Copy paste NFTs projects

It's not that new NFT projects are not around. They are. The problem is that most of them aren't behaving as they should. More so, these NFTs are being copied and pumped into the market. Copy-pasting clones of other successful NFTs from another chain and selling them as if it's their project. The execution has been poor as a result.

These projects aren't being managed well. The number of dead projects in the Dogechain NFT market is overwhelming, and the fact that these clones are still being hyped in the market is disgusting. NFTs developers are lazy and they rely on old images for their development and marketing. People are stealing ideas from successful NFTs and sending them to new projects.

The amount of similarity between NFTs that are being sold by the copy-pasters and the clones is unbelievable. The copy-paste NFTs projects usually ended up being a big ripoff and rug pulls.

Conclusion

The Dogechain NFT market is going to suffer for a while due to the various problems facing it. Low liquidity is the most important and urgent issue that is affecting the market. Most of the NFTs are copied. They are cheap as a result. This is not acceptable in the long run, and people should avoid them like leprosy.

The secondary market is also very bad because the floor prices are lower than the mint prices and many NFTs are being dumped in the market right now. While sellers are looking for higher prices, there are no buyers. The few projects that are selling well in the secondary market are the ones with a first-timer advantage and those that are of higher quality and original art collection.