The floor price of the Moonbirds NFT collection experienced a dramatic 61% decline, falling from 2.53 ETH to 0.99 ETH, following the release of the $BIRB tokenomics plan. The sharp reversal was triggered by holder dissatisfaction with the allocation, where only 25% of the total $BIRB token supply was designated for NFT holders.
The price surge began after the confirmation of the $BIRB Token Generation Event (TGE), announced by the project's new owner, Orange Cap Games, which acquired Moonbirds in May 2025. Anticipation of strong rewards for NFT holders drove short-term demand, lifting the floor price to a peak of 2.53 ETH. Market activity increased across major NFT platforms as traders positioned themselves ahead of further disclosures.
However, sentiment shifted abruptly once the tokenomics details became public. The 25% allocation to NFTs was viewed by many in the community as lower than expected, leading to immediate increased selling pressure. Listings rose while bid depth weakened across marketplaces, causing the floor to crash to 0.99 ETH. Analyst JBond noted that "this dump can be attributed to the holders’ displeasure to just 25% allocation to NFTs," suggesting further declines were possible as the token launch approached on January 28, 2026.
The event highlights the market's sensitivity to token reward structures. Smaller allocation shares often reduce the expected upside for NFT holders, a dynamic observed in past TGE cycles. The reaction was also influenced by past controversies surrounding the project, including its shift to a CC0 license in August 2022—which removed exclusive commercial rights for holders—and leadership changes involving co-founder exits. These historical events continue to shape community trust and reaction to new announcements.
Moonbirds had previously recovered from a low near 0.22 ETH in August 2024, following its acquisition. The recent volatility underscores the fragile state of the broader NFT market, where liquidity is lower compared to previous cycles and sudden changes can trigger sharp price movements. Traders now anticipate further volatility as the $BIRB token launch proceeds.
