March 15, 2023
MachiBigBrother and the art of NFT trading
MachiBigBrother, an NFT whale, has been making waves in the NFT market with his frequent trades and massive holdings. In this article, we'll take a closer look at MachiBigBrother's role in the NFT market and how he has been influencing the market.
MachiBigBrother a dominant force in the NFT market?
MachiBigBrother is a prominent NFT trader and holder, known for his massive holdings in various NFT collections.He is one of the most prominent members of the Bored Ape Yacht Club. MachiBigBrother has become a dominant force in the NFT market, with many traders following his lead.
The Role of Market Makers in the NFT Market
Pacman, the CEO of Blur NFT Marketplace, has explained the role of market makers in NFT trading. According to Pacman, the majority of volume in traditional and token markets comes from a handful of market makers, and the same is likely to be true for the NFT market.
Before the introduction of market makers like Franklin and MachiBigBrother, there were very few in the NFT space. However, with their entrance, the NFT market is set to mature, and more market makers are likely to join the space. Pacman emphasized that market makers are not wash traders but provide liquidity and make a profit on the spread around the true price of an asset. Sugar Shane, a TraFi MM, shared his perspective on the topic based on his experience as a market maker at the Chicago Board Options Exchange and CBOT.
He explained that market makers are compensated for providing a market, and Blur is paying individuals to act as market makers. However, the traders on Blur are not actual traders and may not be aware of the importance of maintaining a reasonable spread between their bid and sell price. The spread is being filled with $blur, and traders are keeping a tight bid because they believe that losses will be compensated by the drop.
The introduction of market makers into the NFT space is expected to transform the industry and enable more people to participate. The liquidity they offer makes it safer to invest in new collections, which generates more volume and revenue for creators.
With the NFT space poised for significant growth, the entry of market makers is just the beginning of what's to come. It will be interesting to observe how the experiment plays out and what the return on $blur coin will be if traders maintain a profitable spread versus an at-the-floor spread.
MachiBigBrother's Trading Activity
MachiBigBrother has been dominating a large portion of the NFT collections trading activity on the Blur marketplace, with many others trading frequently to earn future token rewards. Whale traders, such as MachiBigBrother, are engaging in a titanic battle for dominance with Blur and Opensea, the two marketplaces are head and shoulders above the rest of the competition. Recently, MachiBigBrother made headlines with what could possibly be the largest NFT dump ever. He sold 1,010 tokens in just 48 hours, including Yuga Labs 308 Otherdeed NFTs, 191 Mutant Ape Yacht Club (MAYC ) NFTs, and 90 Bored Ape Yacht Club ( BAYC ) NFTs, among other NFTs, for a total of 11,680 Ether or $18.6 million.
Some speculate that this selling event was an effort to obtain more BLUR tokens as the Blur marketplace is scheduled to receive another airdrop. While MachiBigBrother's trades have raised concerns of market manipulation and the potential to damage the reputation of the NFT market, it is important to note that the NFT market is still a new and unregulated space, and caution should be exercised by investors and collectors.
In just four weeks, MachiBigBrother lost 3500 ETH in realized losses. Half of these losses were incurred on a trade involving the Bored Ape Yacht Club (BAYC). Although some thought that the BAYC trade was a net positive, it resulted in a loss for Machi because he bought at 78 and sold at 60.
MachiBigBrother's Views on the ApeCoin DAO
MachiBigBrother is a member of the Bored Ape Yacht Club and has been involved in the ApeCoin DAO. He has expressed concerns about the centralization at the ApeCoin DAO and suggested automating the AIP process so that every proposal is voted on by the community after a set amount of time on Discourse.
He also believes that there has been fear mongering by DAO leadership about what happens if the Cartan Group's contract is not extended and that there are people in the community willing to work hard and run the DAO regardless of what happens next.
If Cartan is out, MachiBigBrother suggested that the DAO needs to secure all of its assets, restructure its proposal process, and put all remaining treasury ApeCoin into a multisig. He also recommended taking a look at Nouns DAO for restructuring. MachiBigBrother expressed a willingness to volunteer his time and money to help the DAO if Cartan is gone.
As the NFT market continues to see massive growth, it will be interesting to see how MachiBigBrother and other market makers shape the market and how the market evolves over time.