DEADROP NFT Value Drops Following Dr Disrespect’s Allegations and Studio Closure

As 2024 progresses into early 2025, DEADROP, a game under development by Midnight Society—with Dr Disrespect as a founding member—has experienced significant setbacks, ultimately leading to the studio’s closure on January 30, 2025. Regrettably, this decline has also financially impacted players who had invested in the game, as the value of NFT assets has dramatically fallen.

Initially, in early 2022, as excitement built around the announcement of Midnight Society and its ambitious project, the studio introduced the Founders Access Pass. For $50 each, 10, 000 eager gamers could purchase a ‘Variant’—a character in the game featuring unique traits and appearances characterized by varying degrees of rarity.

These passes were a way for fans to engage early with the game and secure a first glimpse before its anticipated launch. Sadly, the promised success did not materialize.

Significant Price Decline Following Studio Closure

Shortly after the announcement of Midnight Society’s closure, the market for Founders Access Pass NFTs collapsed, registering an approximate 80% decline. At 6 PM on January 30, the average price for 10 sales was recorded at 0.0076 Ethereum (ETH), equivalent to roughly $25. Merely 12 hours later, this figure plummeted to 0.0015 ETH, or just under $5.

Deadrop NFT price after Midnight Society shut down — OpenSea

Upon the studio’s announcement, the NFT values fell significantly, reflecting a stark decline below the initial investment.

Although the immediate drop post-announcement was expected, the overall trend reveals an even steeper downfall over time.

Impact of Dr Disrespect’s Controversy

On June 21, 2024, allegations surfaced on Twitter/X from a former Twitch staff member, indirectly hinting that Dr Disrespect faced a ban for admitting to inappropriate messaging with a minor. Several reports followed, including a statement from Dr Disrespect admitting that some messages he sent “leaned too much in the direction of being inappropriate.” He later revised and ultimately deleted his post, sparking immense debate.

Interesting that Dr Disrespect edited the word ‘minor’ out of his original statement.pic.twitter.com/HXvYO2Nn4y

— Jacob Hale (@JakeHaleee) June 25, 2024

The fallout from these allegations had an immediate effect on the market value of the Founders Access Passes, which had already suffered a considerable downturn since their high in March 2023. On June 10, 2024, the average price per sale stood at approximately 0.1927 ETH (around $640).Just two weeks later, on June 24, this average dropped to 0.043 ETH, translating to $143.

The depreciation of the Founders Access Passes has been pronounced and troubling for investors.

While there was a slight recovery in the weeks following the controversy, prices have cascaded downward without substantial recovery, with many sellers currently hoping to recoup even just $5 of their initial investment.

In their official announcement, Midnight Society did not provide any information regarding potential reimbursement for players who purchased the Founders Access Pass.

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