A Look at NFT Treasury Outflows

Blockchain technology has been an epiphany for many creators in the digital realm. Visionaries obsessed with revolutionary ideas, who previously had been ostracized by the traditional financial system, now have access to a rapidly expanding alternative built on crypto rails. In this vein, NFTs, in particular, have sparked a creative explosion by rerouting financial resources to artists and entrepreneurs immersed in creative endeavors.

Consequently, the market abounded in numerous NFT mints that have propagated at a frantic pace over the last year, ultimately culminating in an atmosphere reminiscent of an outright gold rush. As vast amounts of capital were poured into the market, NFT mints became the gold standard for bootstrapping new ventures in the industry. Since these NFT mints have typically generated ETH, the corresponding treasuries would be completely exposed to the whims of the market. This raises the cardinal question of whether NFT projects have already liquidated their ETH in order to better subsist through times of crisis.