As an NFT collector, we all know how frustrating it is when flippers undercut the floor price directly after mint. As this race-to-the-bottom continues, the floor price soon dips below mint price and that can ring the death knell for any project.
To try and counter this devastating trend, we created the Converter. The Converter is a floor preservation mechanism whereby projects can prop up the floor price by offering to exchange NFT assets for a bag of tokens. This bag would approximate the value of the asset at mint. Would-be-flippers would then get more value exchanging their NFT for tokens rather than listing below floor price on the secondary market. And in so doing, the floor would largely remain intact.
We have trialled the Converter with our own Rarity Dawg NFT and collectors have received between 80% and 95% of the value back.
In the future, we hope that more projects will use the Converter to protect their NFT collections so that collectors will have the confidence to know that there assets are protected.
