Developer Embezzles $1 Million from Milady NFT Project, Sending Shockwaves Through the NFT Market
Date: 2023-09-12 Author: Dima Zakharov Categories: BLOCKCHAIN, IN WORLD
The Betrayal and Theft
One of the developers behind the non-fungible token (NFT) collection Milady is said to have absconded with assets belonging to the decentralized autonomous organization (DAO), Remilia. According to Charlotte Fang, co-founder of Remilia, the developer managed to divert around $1 million in commissions owed to Remilia and even gained unauthorized access to the project's Twitter accounts. Shockingly, the rogue developer attempted to blackmail the project team, demanding assets and NFTs in exchange for not disclosing sensitive information.
Impact on Milady
Following this incident, the price of Milady Maker tokens plummeted, experiencing losses exceeding 15% within 24 hours, as reported by CoinGecko. Additionally, there was a substantial sell-off of Milady tokens, with the number of transactions surging by 276.7% at the time of writing.
Furthermore, the average selling price decreased by 10.3%, and the market capitalization dropped by 15.6%. The number of NFT holders also saw a slight decline of 0.2%, reducing to 3,471.
NFT Market's Ongoing Struggles
The broader NFT market continues to face challenges, with declining trading volumes and user engagement. At the end of August, the NFT market experienced its largest two-year decline, with a weekly volume of only $73.2 million. This comes after reaching a peak popularity of $1.8 billion.
Even the most renowned NFT collections, such as CryptoPunks, Bored Ape Yacht Club, Mutant Apes, and Azukis, have witnessed significant drops in their minimum prices. This decline is directly linked to trading volumes and the suspension of mandatory royalties on certain platforms.
