1/ i've now completed initial collections in #NFT projects i think will be remembered as truly "historic," including:

Uniswap $SOCKS

also Squiggly, HashMasks, and Colorglyphs

now is a good time to revisit some theses (thread) 👇
2/ first, i did a similar thread a week ago, but have since refined my views

it might be worthwhile to go back read that first:
3/ second, and i can't stress this enough:


buy to collect for the long-term. imo, some of these will become priceless pieces of history, and most of you will sell them way too early b/c you're overextended
4/ now let's start with @larvalabs CryptoPunks. since my last post, the floor price on Punks has decisively moved up, from 7 ETH to 20 ETH!

there are now reports of folks like @chamath, @garyvee, and others getting serious Punk fever

what does it mean?
5/ collectors with this kind of net worth don't buy this stuff for flipping

they see the #NFT revolution coming, and they are buying in to grab little pieces of history

yes, at some point there will be a huge Punks correction, but it might not be till they trade much higher
6/ there is an argument that at 10K supply, Punks may transcend being simple collectibles to become store holds of wealth

i don't know if this will happen for sure, but if enough people believe it, they could become a Schelling Point for wealth

7/ next on to @larvalabs Autoglyphs. right now, the cheapest one is at 80 ETH

hard to say, but i think not too long from now, you will not be able to find an Autoglyph under 100 ETH, and then 200+ ETH
8/ my thesis on Autoglyphs is that as the first on-chain #generativeart, they will become THE preferred Schelling Point for "fine art" investors

imo, this cohort hasn't arrived yet to invest in #NFTs, but i expect this will change w/ press from the @beeple @ChristiesInc auction
9/ when they do, Autoglyphs will become THE most "elite" cryptoart out there. i don't know if the marketcap will rival that of Punks (now possibly at $1bn+), but the individual unit price will be astronomical

most collectors today are biased in favor of collectibles, like Punks
10/ but the emergence of true #generativeart on #Ethereum will be HUGELY historic, IMO

i've talked often about how i believe this shift to on-chain is historic as far as a creation & ownership mechanism for this form of art

11/ that's why i think platforms like @artblocks are so important to that story. they provide the platform and the tools to help artists create this work.

and no, i don't expect every collection on ArtBlocks to hold value. it will be highly collection and artist-specific
12/ i've bought many pieces from there now, simply because i think that they are attractive, and i want to support the artists / platforms

one collection i believe may become "investment-grade" are the Ringers by @dmitricherniak
13/ i've heard multiple people tell me "i never really got on-chain art or generative art until i saw the Ringers."

imo, this will be THE collection that brings more mainstream art-world eyes to on-chain art than anything else

view the series here: artblocks.io/project/13
14/ just when i thought i had seen all of the interesting stuff historically, @eulerbeats comes out of nowhere to drop what may be remembered as one of the most novel NFTs ever

economically, this is the most interesting NFT series i've seen since $SOCKS- stradding into DeFi
15/ @eulerbeats combines NFT ownership, royalties, and bonding curves into a mind-bending package- all paired with the first generative art audio-focused NFT ever

here's how it works: in the Genesis set, there are 27 original LPs

16/ but anyone can come in and "print" a copy at any time

when they do, 8% of that goes to the original LP owner, right off the top

2% goes to the creators of @eulerbeats

the remaining 90% get locked into a burn contract
17/ at ANY time, any holder of a print can burn their copy for that last 90% which was paid into the burn contract

think about the implications of all this for a second and your head will

this thread breaks down why this will be so significant 👇
18/ from a collector point of view, the original LPs are in a league of their own

but IMO, Prints could appreciate massively over time, and are priced according to a bonding curve

this means that for each additional Print created, the price keeps going up (assuming no burns)
19/ i've created prints for all 27 LPs, and as an example, i'll prob never burn any of my unique copies- ever

get enough people like that and you establish a floor

we will see waves of price discovery, but if people recognize these as historically relevant, the floor moves up
20/ music NFTs are highly underexplored, and @eulerbeats has achieved many "firsts" here

think ahead to a year from now when many musical artists may be come to chain to sell collectible versions of their tracks, etc.

all of a sudden, these OGs become EXTREMELY sought after
21/ one word of caution: if you choose to acquire a print, i recommend you only do so via the official site- that will always guarantee you a fair price

also know that mint costs can shift rapidly based on if existing holders burn their prints

22/ the bonding curve on this is also a crazy wrench in this mix. the price to mint new prints increases markedly as more outstanding copies exist

there can only be a max of 120 prints for each LP

to give you an idea of pricing:

~5 ETH @ 60 prints
~20 ETH @ 80
~100 ETH @ 100
23/ that brings us to the original #DeFi collectible: @Uniswap $SOCKS

i won't fully restate my thesis here, as not much has changed (though the price has soared from $37K to $92K back to $75K), but you can see my original points here:
24/ what has changed for $SOCKS, since the introduction of NFTs like @eulerbeats and @TheHashmasks, is that economically-driven #NFTs are likely going to be a key driver of growth in this space

$SOCKS will ALWAYS be the first of these, with their bonding curve pricing on Uniswap
25/ soon, every early #DeFi whale will realize they need at least one $SOCKS, and it wouldn't surprise me to see them trade at well over $1M one day

(PS- this is not financial advice)

26/ so what comes next for me and #NFTs? i outlined my views on how i approach capital allocation in this space below a few days ago
27/ my plan is to keep an eye on works in Type 2 which have a shot at becoming Type 1

or new drops which i believe are basically Type 1 right out of the gate (like i feel EulerBeats will be)

but at the end of the day, time is the ultimate judge
28/ i fully expect to see some collectibles go through "hype cycles," where they become over-exposed and then forgotten

consider how CryptoPunks have been around for years, but have only gained major steam over the past few months
29/ the same will be true for some newer #NFTs we are seeing now

sometimes things are only revealed to be historically significant after others have arrived and taken inspiration from them

observe hype, consider it, then focus on long-term value drivers 🧐

this is the way
30/ addendum: i included Colorglpyhs on my "also" list because i think they are undervalued and will be priced properly after Autoglyphs are. they are NOT "genre-defining"

Hashmasks are also very interesting, but TBD on evolution & longevity

But Squiggly are HIGHLY slept on imo

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More from @iamDCinvestor

22 Feb
1/ guys, if you want me to always say "hey, any L1 could come in and replace #Ethereum b/c it has lower fees," OK

but these type of takes just ignore accrued network effect and how value networks agglomerate

establishing those things are actually harder than scaling Ethereum
2/ i don't expect you all to agree with me, but know i'm not trying to pump my bags or FUD others

any take i offer you is based on my ACTUAL opinion. you can agree or disagree

and yes, i still think buying L1 tokens for platforms which haven't proven much is a bad idea
3/ you should feel free to ignore me, or label me a Maxi, or whatever is convenient for you

i'm not anti-multichain

i'm just pro-reality

i realize some think it's not "fair" that fees are very high, but as a permissionless blockchain, #Ethereum doesn't evaluate "fairness"
Read 5 tweets
20 Feb
my approach to NFT collecting is fundamentally the same as my approach crypto:

if hype, observe & analyze. is something real there?

the best assets are those which people misunderstand because there is non-obvious, unique value

value which will one day be very broadly realized
e.g., absolutely hilarious that you can still buy:

@eulerbeats prints for less than 5 ETH. many now close to 0.5 ETH

Autoglyphs less than 100 ETH. some still 50 ETH

Colorglyphs less than 10 ETH. many less than 1 ETH

Ringers under 15 ETH. some still at 4 ETH

Read 4 tweets
18 Feb
1/ i've been thinking about what would happen in a #NFT art & collectibles bear market 🖼🧸🐻

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
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
Read 11 tweets
16 Feb
so, #NFTs are in a "bubble"

but anything being priced properly for the first time based on a surge of new interest experiences bubbles

the question is how far will it go and how far would it crash

but IMO, many underestimate the degree to which "distribution" is occurring

collections which used to be much more concentrated in the hands of speculators are ending up in the hands of long-term collectors

many buy just a couple of pieces to be a part of history, and won't sell at any price really

meanwhile, the potential collector-base is growing

so far, it's literally been a few hundred to a few thousand nerds playing with this stuff

some are foundational collections in an emerging art form & ownership model

as usual, many will miss the big picture

i count on it, so i can accumulate quality for my collection

Read 5 tweets
14 Feb
1/ I'm getting TONS of messages me asking me "Hey DC, what #NFTs should I buy?

The proper answer is ONLY ones that you enjoy and are willing to hold for years or possibly for forever.

But I will tell you some of the ones I have bought recently and why (MEGA-thread below)👇
2/ First, let's start with some caution: don't buy NFTs *expecting* financial return. You may be very disappointed.

Tastes can shift very quickly and decisively, and given market illiquidity, we could see price collapse under panic conditions.

I buy to collect & hold for years.
3/ Second, let's discuss the only blockchain I'll buy high-value #NFTs on- that's #Ethereum.

Why? The linked thread covers it, but to summarize, I can't afford to put big sums of money into chains cutoff from DeFi and which might not exist in 5-10 years.

Read 23 tweets
21 Jan
@RaoulGMI I only need once sentence for each of these:

$AAVE will be the world's largest bank & asset lender.
$SNX will be the world's largest synthetic asset provider.
$UNI will be the world's largest exchange.
$YFI will be the world's largest asset allocation protocol.
@RaoulGMI OK, I'll give you some paragraphs too @RaoulGMI 👇

$AAVE is one of the leading asset deposit / lend protocols. #1 in TVL (Maker ahead, but that's a CDP protocol for DAI). Team busts their butt to add new integrations with other protocols and to build bridges into real world.
@RaoulGMI IMO, $AAVE is probably my top pick to be the most valuable protocol in DeFi for the near future.

It and other lending protocols will act like huge billows, bringing in real world liquidity (as USD) to fuel people going long on crypto in DeFi (as they can continually earn yield).
Read 9 tweets

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