Deepak.eth Forced To Sell NFT Collection After FTX Crash

Deepak.eth, the founder of Chain Blockchain, is planning to sell the company’s NFT collection after the recent FTX crash.

The blockchain infrastructure company was left with no other option as it tries to access liquidity with most of its funds trapped on FTX. The announcement has seen mixed reactions online.

With the NFT market feeling the impact of the bear market, some are ecstatic to get their hands on the elusive collection on the cheap. While others have shared messages of comfort with the founder.

According to a Twitter thread, Deepak.eth claims that the NFT collection will be sold to the highest bidder. Otherwise, it will be placed in a “fractional DAO.” In the latter case, the company plans to sell 80% of the ownership.

The collection is quite impressive, boasting some high-ticket NFTs. There are a few characters from the Bored Ape Yacht Club (BAYC), mutants, Tiffany Punks, and many others. Together, they would go for 8.000 ETH, or $10,112,000 as of the time of writing. 

Chain Blockchain Liquidity Needs Mean NFT Collection Has To Be Sold

Deepak.eth reveals that despite his company cutting ties with Alameda in the summer, it continued to hold funds on FTX. He adds that recently they made a major deposit on the troubled exchange, which has complicated things. Now the funds are stuck, and they are yet to access them for withdrawal, which has forced them to tap into their NFTs for liquidity.

One tweet on the thread reads, “I will, however, start to access liquidity through my NFT holdings, with the most likely scenario being that I will be putting them into a fractional DAO, including Alien Punk 5822.”

The liquidity issues at Chain Blockchain are one of the many cases of companies and individuals that have been affected by the FTX fiasco. The exchange hasn’t been transparent about its operations. This has caught the attention of regulators, who are ready to pounce.