Insider Trading in the NFT Market? Moonbirds’ Unusual Sales Activity Before Yuga Deal
Prices and trading volume for the Ethereum NFT collection Moonbirds experienced a significant surge on Friday following the announcement of Yuga Labs’ acquisition of the collection’s intellectual property alongside creator Proof.
However, there were also considerable spikes in sales activity in the days leading up to the revalation, which has sparked speculation of potential insider trading.
Data from blockchain analytics platform CryptoSlam reveals that daily sales volume for Moonbirds NFTs remained below the $100,000 mark for each day throughout this month until February 13, with only one exception on February 4, totaling approximately $141,000.
On February 14, daily sales volume skyrocketed fivefold to about $460,000, accompanied by almost four times the number of transactions seen previously.
The elevated sales volume persisted on February 15, amounting to roughly $333,000.
Following the afternoon announcement on February 16, sales surged even further, with the current daily tally at approximately $3.1 million and rising.
A closer look at the project’s price floor, which represents the lowest listed asset price in the collection, reveals a similar pattern of spikes in the days leading up to the Friday announcement.
On Monday afternoon, the price stood at around $2,680 worth of ETH according to data from NFT Price Floor.
It began climbing on Wednesday, reaching $5,000 before experiencing a slight decline.
However, on Friday, after the announcement, it briefly peaked at over $6,000 worth of ETH before settling at approximately $5,170 at the time of writing.
While it is not surprising for asset prices to rise following a deal announcement, the surge prior to the announcement raises suspicions of potential insider trading.
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