NFTs In The Bear Market: Should Your Prices Change Or Not?
This is the first bear market many NFT creators would be witnessing mostly because many joined in the bull market when NFTs gained massive recognition and when the NFT space became known as a very lucrative space. NFts have been existing since 2014 but most people saw what they were capable of in the last three years.
Now the bull market is pretty much over and NFt creators and collectors who aren't leaving the space are left with so many decisions to make. Sales are already being affected by the market and many people are beginning to think that maybe the NFT bubble is about to burst. While I think we're pretty far from a burst in bubble if at all, the decision to change the prices of NFTs is upon almost every creator and collector already.
There are alot of opinions about this though. Some people have the opinion of increasing the prices of the NfTs to have the initial value it had in USD or their local currency before the bear market and other feel the prices of the NFTs in crypto shouldn't change regardless of the current USD value of the NFT.
I personally believe this decision lies in the hands of the owners of the NFTs (creators and collectors) because they're the ones who would either benefit or lose from whichever choices they make in the bear market. We can only have opinions and give suggestions but the decisions remain theirs to make.
To increase the price of an NFT to the USD value it initially had before the bear market may seem like the creator or collector basically came for money and not the growth of the blockchain. The reality is almost everybody in the NFT space came for the money, but stayed for the community and the tech. Increasing the price of the NFT in the bear market may reduce the chance of getting sales especially since most people are in their stacking mode and are preparing really hard for the next bull market. Every crypto matters in this phase. NFTs with higher prices have lower chances of selling in the bear market when compared to those with lower prices. It may sell and we still see many works sell for crazy amounts, but chances are slim and people tend to look for cheaper NFTs this period.
Not changing the prices of the NFTs regardless of the market's performance seems like a loyal thing to do, but when it comes to art, it feels quite different. Art is valued mostly in their USD or local currency worth and if prices keep crashing hard, an influential artist may appear to have cheap works and that may lead to some devaluation of the artist and their works. It's pretty crazy but that's just how things work in the art world. So I do understand why most artist increase the prices of their NFT arts. However, I believe we're entering a period where people also place value on things based on their worth in cryptos and not only in local currencies.
The decisions to increase or not change the prices of NFTs remains that of the creators and owners of the NFTs. Alot is considered here since they'll have to live with the consequences of their actions.
Please note that my articles are not a financial advice and are solely my thoughts from analysis and experience. The cryptocurrency market is extremely volatile so please do your due research before investing in any cryptocurrency.