I see a lot of people who have millions locked up in NFTs thinking that it's liquid wealth.
It's not. The exact same reason why NFTs are able to appreciate so much in value over a short period of time means that the entire market can silently crash overnight as well.
If these wash traders stop pumping up prices all of a sudden, you could price your NFTs at sky high values and no one will bat an eye at you.
This is a risk they are taking they do not know it is there, when it comes to coins like bitcoin that are freely traded you know that even if there is manipulation going on it is impossible for a silent crash to happen, everything is on the open as every single transaction sends a pricing signal to the rest of the market participants.
But this is not true in the case of NFTs, if a NFT sells for a high price that does not mean the NFT you are holding will do the same, since they are not fungible no one knows the true value of what they are selling and buying and each person is using their best judgment in order to try to figure this out, but as soon as new money runs out then the majority of those coins will crash in price almost immediately, but most will not notice and they will only do so once they try to sell and there is no one there to buy at any price.
