NFTs is allowing talented artists to express their craft to a wider audience thanks to blockchain technology.

I have developed a methodology to choose appreciating NFTs from a valuation standpoint.

Time for a thread 👇👇👇
1/ First thing to do is to look for the trend and theme. What are people interested into while buying a piece of art ? What is the demand ? Today’s trend as an example is crypto art with themes on #Bitcoin and #Etherum. These are the best selling pieces from price appreciation.
2/ Now search for Artists. Check if the artist has a website or social media. This signals to the investor the professionalism of the artist and whether he or she has long term goals to pursue a digital art career.
3/ Look for 2 key metrics.

(1) number of followers
(2) uniques pieces of art created by the artist

Divide (numbers of followers/ unique pieces of art), the more the ratio is greater than 1 the better. This ratio measures demand from investors for the artwork of the artist.
4/ continuing on the ratio, scarcity is key. Why ? because it shows the artist’s craft and quality behind each art pieces. It signals to the investor that pieces of art produced have been hard to produce, more time has been spent etc... so if (2) is low that’s great.
5/ Also look for the number of pieces sold on the store. If the artist has sold let’s say 80% of its Artwork, it means that there is a high demand for the artist’s craft. This is key for investors as it making the market agreeing on the fact that the artist’s work is good.
6/ you can also look on the secondary market how many times a piece of art has changed owner’s hand and at which price. If the artwork has change hand 1-3 times and has an appreciating price history. Then this is a good sign of demand as well as quality of the artwork.
7/ Watch for collectors who are collecting the artist’s work, check if they are whales, which artists are they collecting, how many times they are buying one specific artist, what type of art they collect, how much money are they putting in etc.....
8/ Now the last step is the subjective part, if your buy a piece of art for enjoyment and not for investment then you can skip the entire process and buy according to your tastes and enjoyment. However, for investors I do believe the subjective part must come last.
9/ As far as I am concerned, I do like finance theme art, nature and abstract. I look for vibrant colorful pieces, history behind the piece, complexity etc..... I like to enjoy the art I buy and this enjoyment must last for decades. This is key enjoyment should last long term.
10/ So this is how I proceed while investing into NFT art. This is a non exhaustive list as the industry is still so early with a $300 million market cap. Any thoughts @DCLBlogger ?

#Ethereum #NFTs #NFT #Blockchain #digitalartwork #blockchainart

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Aman Kahar

Aman Kahar Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @A_kahar92

7 Oct
Treasuries rates are close to the zero bound.
Why would someone buy and hold treasuries trough maturity ? The answer is convexity. When yields are falling, prices are increasing. The longer the maturity, the higher is the increase of the bond price when rates are falling.
With FED's treasury buying, the market is expecting yields to fall and price to increase, especially if QE is the new norm to inject liquidity to the system. Buying TLT, the iShares Barclays 20+ Year Treasury Bond ETF can be in this case profitable. Image
One major risk is inflation, as it leads rates to increase and treasury bond prices to decline. The decline is amplified for the longer term maturities, this is called negative convexity. In this case buying TIPS can be a hedge against rate increase for longer term maturities.
Read 5 tweets
6 Oct
U.S Treasuries yields are close to zero, with shorter term maturities yields below longer term ones. The 40% allocation to bonds might be overrated to today's economic situation. As many U.S investors are exposed to treasuries rather than corporate bonds.

Short Thread 👇
1/8 As you can see on the chart below the 30Y maturity is at 159bps and shorter term maturities even lower. It is far better to hold equities in this case as equity premium are favouring equities. Image
2/8 As an example the dividend yield for Apple (AAPL) is at 74bps and the 10Y treasury is at 78bps, both yields are very close. The average inflation rate targeted by the fed is 2% and the U.S 30Y treasury is at 159bps, holding the treasury until maturity is loosing you money.
Read 9 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!