Many Bored Ape NFTs Are in Danger of Getting Liquidated as Borrowed Money Comes Back to Bite

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Many Bored Ape NFTs Are in Danger of Getting Liquidated as Borrowed Money Comes Back to Bite
The NFT lending platform BendDAO has collateralized almost 3% of the entire Bored Ape collection, and many NFTs have recently entered the “danger zone” of liquidation
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Floor prices have tumbled in recent months, so much so that 45 of the 272 Bored Apes with BendDAO loans tied to them are now in the platform's “danger zone,“ when an NFT used as collateral is close to being auctioned off. In other words, $5.3 million worth of Bored Apes are at risk of being liquidated.
BendDAO is popular among NFT collectors, so the scope of any fire sale could be massive. The 272 Bored Apes tied to BendDAO represent 2.72% of the entire collection.
A mass liquidation event could also have implications for other NFT lending services, which have risen to prominence in the past year as the NFT industry has exploded in popularity. Also, Bored Apes are one of the most prominent NFT collections, if not the single most important one, so cascading liquidations in that space could have broad consequences beyond just the Bored Apes.
”The short-term fluctuations in NFT floor price are normal,” BendDAO said in a statement. ”Consensus on blue chip NFTs wasn’t built in a day, and it will not be collapsed in a short period of time.”

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@kouba01, @steemcurator01

The Bored apes should go and work, so they can get paid instead of just being bored😂

Yay more Crypto! So much more than money.
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