Last Updated on July 16, 2023 by COINBUZZFEED
Lens Protocol Profiles, a popular collection of non-fungible tokens (NFTs) on the OpenSea marketplace, has experienced a drastic decline in its floor price over the past week. The floor price of Lens Protocol Profiles NFTs has plummeted by more than 60%, now hovering around 50 USDC. This significant drop in value can be attributed to the recent launch of Lens Protocol’s test invitation system on July 13.
The introduction of the test invitation system seems to have triggered concerns among some holders of Lens Protocol Profiles NFTs. As a result, a portion of these holders decided to sell their NFTs, contributing to the decline in the floor price. The test invitation system, which aims to invite users to join the Lens ecosystem, appears to have inadvertently created a situation where existing NFT holders sought to capitalize on the invitations by selling their profiles.
While some individuals speculate that the Lens Protocol team may be selling their own profiles to generate funds under the pretext of invitations, this claim lacks concrete evidence. The criteria for distributing invitations and the reasons behind their allocation remain unclear. Consequently, some potential buyers have expressed frustration with the lack of transparency, especially when they are unable to secure a profile NFT even with a $100 budget. Notably, these buyers have reported transaction reversals, further exacerbating their concerns.
