Oh bot offers. If you're new to NFTs you might just be getting used to them, but before you know it they'll start to feel like junk mail. While real people do make offers on NFTs all the time, the highest volume of offers comes from bots, which are essentially just scripts by NFT investors designed to buy NFTs below the floor.
I've seen a lot of confusion about bots, and some people seem to think they're some kind of virus or a code snippet running haywire - this is not the case. Bots are usually written by people with a pretty good understanding of the NFT space, which means the offers these bots make can give you a window into the greater narrative of NFT prices.
The first thing you'll find about bot offers is they're low, often well below what you would sell for, and if you think about it, that makes total sense. If someone is going to buy NFTs algorithmically, they can't buy at the floor or a little below it, they need to buy at a meaningful discount to be able to easily flip and make money, and in many cases that's the game.
Bots represent a healthy arbitrage opportunity that provides liquidity for NFT investors, and I think it's good for the space as a whole. The person operating the bots wants to be able to buy an NFT at such a steep discount that they can flip it for a profit almost instantly just be pricing a bit below floor. The person selling an NFT at a bot-level price may need liquidity now, and this is the fastest and easiest way to do it.
What makes bots so interesting is that they can tell you where the market is going, and after a few months of waning bot offers, things seem to be turning around, and quickly.
Like many other NFT investors, I'm seeing a pretty noticeable increase in bot offers and the corresponding prices. While it could be too early to say that the market is turning around, it's hard to ignore what I think could be an early indicator that floors are going back up.
For those who remember, just a few months ago the floor for Bored Ape Yacht Club was 60ETH, it dipped down to 29ETH momentarily before settling the 30 - 40 ETH range where it's been hanging out for the last couple of months. Other hot projects, like Cool Cats or Toadz, both which saw their floors catapult over 10ETH fell 50% over the last few weeks.
All markets go through cycles, and personally, I think the NFT market just went through a rather healthy correction. So what happens after a correction? 🚀