Kaiju Kongz has added a burn mechanism to his new NFT collection. The project will burn if you list your NFT below a specific value on OpenSea. Needless to say, this decision has not gone over well with everyone. Several Twitter users speculated that the change is being made to “artificially pump” the project’s floor price. If you’ve spent time in the NFT industry, you know how critical the floor price is for a project’s success. It is one of the essential factors in determining the worth of a project.
Simply put, the floor price is the lowest sum you must pay to purchase NFT from a specific collection. As a result, it is not uncommon for at least some projects to pump their floors artificially. Kaiju Kongz appears to be doing the same thing, albeit differently.
First and foremost, what does it mean to burn an NFT? When an NFT is burned, it is automatically deleted from the collection. Put another way; you will lose any money you have invested in the NFT. “If you list below the threshold then it is destined to be burned, trying to delist it or buying it after mistakenly listing below threshold will not save your NFT,” Kaiju Kongz wrote. “So double/triple check the burn schedule before you list it!”
“If you list it above threshold price and then delist/get it sold before the next day’s new threshold price kicks in then you are safe, the NFT will not be burnt,” the project added.
Kaiju Kongz, it appears, has also set up a burn timetable. The dates for the various thresholds are listed below. The project will burn any listing that falls below the set prices on a given day.
- 18 March, 20:00 UTC – <0.065 ETH
- 19 March, 20:00 UTC – <0.08
- 20 March, 20.00 UTC – <0.16
- 21 March, 20:00 UTC – <0.32
- 22 March, 20:00 UTC – <0.64
- 23 March, 20:00 UTC – Burn mechanism will be disabled
Even if you’re a collector looking to purchase Kaiju Kongz, you should know the burn criteria before purchasing any NFT. Because if you buy an NFT listed below the threshold price for that day, Kaiju Kongz will burn it the next day. Several individuals criticized the concept after Kaiju Kongz revealed the specifications of the burn technique on Twitter. For example, @MorganStoneee wrote, “Yikes. Burning listings below a certain threshold to artificially pump your floor? NGMI.”
Another called the move “illegal market manipulation tactics.” Several users also commented that the project should grow the floor “organically.”
Kaiju Kongz is made up of 3,333 NFTs in total. Their name and graphic style are similar to the pixelated Kaiju Kingz collection, a popular market project. The Kaiju Kongz floor has currently reached 0.265 ETH.