1/ i've been thinking about what would happen in a #NFT art & collectibles bear market πΌπ§Έπ»
first, one point: a NFT is only (financially) worth what someone else will pay for it
period- end of discussion
if no one wants to buy your NFT in a year, it is worth ZERO
first, one point: a NFT is only (financially) worth what someone else will pay for it
period- end of discussion
if no one wants to buy your NFT in a year, it is worth ZERO
2/ let's also acknowledge that there is a TON of content being created right now
frankly, a lot of it is trite & derivative- but i respect the creative expression nonetheless in some cases
much of it is not that attractive, original, or has any kind of interesting provenance
frankly, a lot of it is trite & derivative- but i respect the creative expression nonetheless in some cases
much of it is not that attractive, original, or has any kind of interesting provenance
3/ many such pieces will not retain ANY monetary value
some collections will be sold into the ground with supply hitting marketplaces that no one wants to buy in a bear
for work that may remain meaningful in the long-run, buyers will step in, but possibly at very steep discount
some collections will be sold into the ground with supply hitting marketplaces that no one wants to buy in a bear
for work that may remain meaningful in the long-run, buyers will step in, but possibly at very steep discount
4/ some series which fall prey to this may recover substantial valuation in the future-
IF NFT art is here to stay (i think it is),
and if they were parts of limited supply collections that people later deem to be significant in some way
IF NFT art is here to stay (i think it is),
and if they were parts of limited supply collections that people later deem to be significant in some way
5/ so this brings us to the question: what happens to the so-called "canonical" collections?
many of these are OG series (take CryptoPunks, Autoglyphs, and others) which did something for the first time
what happens to them?
it depends on who's buying them right now and why
many of these are OG series (take CryptoPunks, Autoglyphs, and others) which did something for the first time
what happens to them?
it depends on who's buying them right now and why
6/ i do think a fair amount of supply for these is distributing into "long-term" collector hands
as long as they aren't overextended, and as long as they truly believe in the NFT space long-term, they will not distribute their holdings- even in a bear
as long as they aren't overextended, and as long as they truly believe in the NFT space long-term, they will not distribute their holdings- even in a bear
7/ but there is also no doubt that we are seeing more unsophisticated retail & speculators FOMO'ing into some of these markets
i don't know when that FOMO ends, and it's also possible we've only seen it barely begun
i don't know when that FOMO ends, and it's also possible we've only seen it barely begun
8/ overall, this started as stuff a few hardcore Ethereum nerds were interested in, which has now progressed into stuff people like Chamath and Cuban may be buying
likely with plenty of mainstream retail on their heels, looking for digital art in an increasingly digital world
likely with plenty of mainstream retail on their heels, looking for digital art in an increasingly digital world
9/ not much to do here, imo, other than manage risk
i would NOT put a catastrophic loss amount of my net worth into NFT art right now
don't buy to flip, unless you know what you're doing and can take the risks associated with this
i would NOT put a catastrophic loss amount of my net worth into NFT art right now
don't buy to flip, unless you know what you're doing and can take the risks associated with this
10/ instead, buy pieces you love, and would want to hold through a bear market πβ
and from artists / platforms that you want to support
plan to hold them for years, and enjoy the emergence of what i think we'll look back on as truly innovative and historic art forms
π€πΌ
and from artists / platforms that you want to support
plan to hold them for years, and enjoy the emergence of what i think we'll look back on as truly innovative and historic art forms
π€πΌ
11/ as for me, i mostly only buy large amounts for my long-term collection, from series i deem to be canonical (though i like to have some fun sometimes, too)
these are the collections i have the most meaningful long-term positions in
these are the collections i have the most meaningful long-term positions in
https://twitter.com/iamDCinvestor/status/1362212781416738817?s=20
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