How Moonbirds NFT went from making $280M in 48 hours selling birds to the most fudded NFT project in?Web3

#Moonbirds is a collection of 10,000 NFTs

Minted at 2.5 ETH each on April 2022-? featuring an owl character with varying attributes.

The floor price skyrocketed in the 2 days from 2.5 ETH to 40 ETH

Made a WHOPPING $280M in 48 hours of launch:)

Since then the floor price is down more than 95%. More than any other former #bluechip NFT project.

In my opinion, there are 9 main reasons that contributed to Moonbirds’ decline:

1. Ryan Carson’s Controversial Involvement

One of the main reasons for the decline of Moonbirds was the controversial involvement of Ryan Carson, the former COO of Proof Holdings, Inc. Carson’s actions raised eyebrows within the community, as he started purchasing rare Moonbirds just hours after their reveal. This behavior was seen as shady, considering Carson’s insider knowledge of rarity numbers and post-mint marketing plans.

Shortly after the mint, Carson left Moonbirds to establish his own NFT fund, further fueling speculation about his motives.

2. Undisclosed Ads and Celebrity Endorsements

To increase the project’s visibility, the Moonbirds team distributed free NFTs to celebrities. While this strategy is not uncommon, the issue arose when these celebrities failed to disclose that they received these NFTs for free when they promoted Moonbirds on social media. This lack of transparency led to deception and eroded trust among potential investors, damaging the project’s reputation.

3. Disappointing Nesting Rewards

Moonbirds introduced the concept of “soft staking” with the promise of nesting rewards. Holders were encouraged to stake their Moonbirds, expecting to receive valuable rewards over time. However, when the nesting rewards were finally distributed, they fell short of expectations. Socks and fanny packs, the rewards offered, failed to meet the anticipated value, resulting in disappointment and disillusionment among the community.

4. Backlash from Oddities Reveal

In an attempt to appease Moonbird holders, the team gifted them with free NFTs. However, the team’s messaging surrounding these NFTs created inflated expectations regarding their importance. When the art for these oddities was eventually revealed, it received substantial backlash. Moonbird holders felt misled and disappointed, further undermining confidence in the project.

5. Controversial Switch to CC0 License

Initially, Moonbirds began with a license similar to that of Bored Ape Yacht Club (#BAYC). However, in August 2022, the team decided to switch to a Creative Commons Zero (CC0) license without consulting the community.

This sudden change left holders feeling betrayed and resulted in a significant loss of trust. The decision to switch licenses without considering the sentiments and preferences of the community proved detrimental to Moonbirds’ reputation.

To put into perspective how bad this was... A Moonbirds #holder lost a 6 figure deal because of this switch to CC0.

6. Cancelled PROOF Conference Plans

PROOF, the parent company of Moonbirds, faced setbacks when it cancelled its highly anticipated conference. The scrapping of Highrise, the project’s Metaverse, and the Moonbirds coin further exacerbated the situation. These cancellations created a perception that the project had lost its vision and raised doubts about the team’s ability to execute their plans effectively.

7. Operational Mistakes and Financial Concerns #SVB

Moonbirds faced operational mistakes, most notably with its significant funds held in Silicon Valley Bank (SVB). When #SVB faced financial troubles, concerns arose that Moonbirds had potentially suffered severe financial losses. Although the funds were eventually deemed safe, this incident raised questions about the project’s financial responsibility and created uncertainty among investors.

8. Poor Communication and Customer Relations

Effective communication is vital for any project’s success, but Moonbirds struggled in this aspect. The team’s communication with the community was perceived as lacking transparency and authenticity. One incident involved a Moonbirds holder, Nesanel, who had questions for Kevin Rose , one of the co-founders. Instead of addressing the concerns, Rose dismissively stated that Moonbirds was not for Nesanel.

This dismissive response prompted Nesanel to sell his Moonbirds, a decision that proved fortuitous in hindsight.

9. Twitter Spaces Controversy

Moonbirds and Kevin Rose found themselves in the spotlight of #NFT #Twitter once again due to controversial comments made by Rose in a Twitter space. Rose’s statement, comparing Moonbirds to other projects and highlighting that they were “not as down bad,” sparked criticism.

"Apes down more than Moonbirds dollar for dollar!"        

Investors were more concerned with the percentage ROI rather than the absolute $ value. Rose’s subsequent tweet addressing the backlash, which he disabled replies to, and subsequent deletion of the tweet added to the confusion and raised questions about his decision-making.

Which is hilarious because literally 2 days ago he was asking people to #fud him. Then when a fuddable event happens, he doesn't let anyone reply to the tweet. Makes no sense lmao

The Perceived Gap between Expectations and Reality

One of the fundamental issues that contributed to Moonbirds’ decline was the significant discrepancy between the community’s expectations and the reality of the project. Moonbirds was hyped to be the next big thing in the NFT space, but operational missteps and a lack of understanding of the dynamics on NFT Twitter shattered those expectations. This disconnect between what was promised and what was delivered led to a loss of trust and sentiment among investors.

Moonbirds’ Current State and Future Prospects

While Moonbirds’ decline has been substantial, it is premature to conclude that the project is finished. The team still possesses considerable financial resources and an experienced team, which could be instrumental in orchestrating a potential comeback. However, the road to recovery will not be easy, given the damage to the project’s reputation and the need to rebuild trust within the community. Moonbirds has the theoretical potential to make a comeback, but it must address the concerns raised and deliver on its promises to regain investor confidence.

Conclusion

Moonbirds, once a shining star in the #NFT space, has faced a significant decline due to a series of controversies and operational missteps. Factors such as the involvement of Ryan Carson, undisclosed ads, disappointing nesting rewards, and the switch to a CC0 license have eroded investor confidence and damaged the project’s reputation. Issues with communication, canceled plans, operational mistakes, and the Twitter Spaces controversy have further exacerbated the situation. However, Moonbirds still possesses the resources and expertise to potentially turn the tide. The project’s future hinges on its ability to address these challenges, rebuild trust, and bridge the gap between expectations and reality.

FAQs

FAQ 1: Can Moonbirds make a comeback after its decline?

While Moonbirds’ decline has been significant, there is a possibility for the project to make a comeback. With substantial financial resources and an experienced team, Moonbirds has the potential to regain investor confidence and deliver on its promises. However, rebuilding #trust and addressing the concerns raised will be crucial for its future #success.

FAQ 2: What were some operational mistakes made by the Moonbirds team?

Moonbirds faced several operational mistakes, including the involvement of Ryan Carson, the switch to a CC0 license without community consultation, the cancellation of the #PROOF conference, and concerns regarding financial responsibility. These mistakes contributed to a loss of trust and damaged the project’s reputation.

FAQ 3: How did celebrities play a role in the decline of Moonbirds?

Celebrities were given free Moonbirds by the team to increase the project’s visibility. However, when these celebrities failed to disclose that they received the NFTs for free, it led to deception and eroded trust among potential investors. This lack of transparency had a negative impact on Moonbirds’ reputation.

FAQ 4: What was the impact of the CC0 license switch on Moonbirds?

The switch from a license similar to Bored Ape Yacht Club (#BAYC) to a Creative Commons Zero (CC0) license without consulting the community caused a loss of trust and a sense of betrayal among Moonbird holders. The sudden change in licensing terms contributed to the decline in sentiment towards the project.

FAQ 5: How did poor communication affect the perception of Moonbirds?

Poor communication, characterized by a lack of transparency and authenticity, negatively impacted the perception of Moonbirds. Instances such as dismissive responses to holders’ concerns and disabling replies to tweets created the impression of a project that did not prioritize customer relations. This further eroded trust and contributed to the decline in sentiment.

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