This is why NFT bear cycle speculation can carry some weight

The fall of the NFT market over the past few weeks has been well documented. Some market skeptics have even gone on to say that we are currently in the midst of a “likely first NFT bear market”. A blockchain expert complaints that NFT floors are likely to fall following the liquidation of Bend DAO. He further says that the “NFT market is dry rn (right now)”. This is evident in the fall in BAYC’s floor price which has seen a decline of 18.18% over the past month, as shown below.

Source: CryptoSlam

However, LunarCrush reports on an upward trend in social metrics for global NFT activity over the past week. According to the update, NFT activity has been on a downward trend for the past couple of months and only recently started to recover. The data indicates that NFTs received a total of 17.14 million social mentions over the past three months. NFTs also saw over 54.35 billion social engagements during this period from a total of 107,248 social contributors.

Source: Lunar Crush

More underlying issues

A recent study by Galaxy claims that the vast majority of NFTs do not convey any intellectual property rights over their content. Intellectual property rights issues have recently come to light, and major issuers, such as Yuga Labs, continue to make headlines about this issue. The report also finds that only one NFT collection in the top 25 by market capitalization attempts to “give intellectual property rights” to the buyer; Women’s world.

“The central issue with NFT licensing agreements is the asymmetric control that the copyright owner has over the license. Copyright owners have the right to modify and revoke an NFT license to NFT owners at their sole discretion if they believe the license agreement has been violated, or for any other reason,” the report states. .

Although this problem does not directly affect users yet, it may turn out to be catastrophic later on. Therefore, NFT issuers should update their license agreements with users to avoid legal tensions in the future.

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