Famous NFT Collector Machi Big Brother Sells BAYC NFTs to Finance ETH Long Positions
Machi Big Brother sold 34 Bored Ape Yacht Club NFTs in the past month, raising approximately 326 ETH (about $514,000), but incurred a total loss of about 399 ETH (approximately $631,000).
Among them, Bored Ape #6057 suffered the most significant loss, purchased four years ago for 76.84 ETH and recently sold for 7.65 ETH, resulting in a loss of about 90%.
In terms of market mechanics, the funds from NFT sales are directly flowing into ETH long positions on platforms like Hyperliquid. The number of entities selling high-priced NFT assets is increasing, driving the flow of leveraged funds in the crypto market. Beneficiaries include ETH long position holders and platform trading volumes, while NFT long-term holders and BAYC ecosystem liquidity are under pressure.
Source: Public Information
ABAB AI Insight
Machi Big Brother, previously an early NFT collector, accumulated a large number of blue-chip NFTs like BAYC during the 2021-2022 bull market, having sold several apes at high prices and repeatedly monetized NFT assets to support DeFi and derivatives trading throughout the crypto cycle.
The capital path indicates a shift of early profit capital from NFTs to spot and perpetual contract leverage, motivated by hedging and amplifying directional bets on ETH through high-volatility assets, strategically reducing NFT exposure in a bear market in favor of more liquid derivatives markets.
Similar to 2022, when many NFT whales sold blue-chip assets to replenish margins as floor prices collapsed, the current NFT market is transitioning from speculative collecting to liquidity monetization tools.
Essentially, this reflects capital concentration and technological substitution, with the mechanism being that NFT liquidity is far lower than that of spot derivatives. When holders face high holding costs, they prioritize liquidating positions to shift to high-leverage ETH positions, concentrating funds and attention on on-chain trading infrastructure, with pricing power shifting from NFT projects to derivatives platforms and spot leaders.
ABAB News · Law of Cognition
Asset rotation is temporary, leverage amplifies forever; liquidity is always a prerequisite for survival.
NFT speculation buys high, sells low in bear markets; cycles harvest without mercy.
Retail investors chase trends temporarily, whales sell structures for a lifetime; position management determines life and death.