Matty Profile picture
23 Feb, 14 tweets, 3 min read
Is the NFT Market a Bubble?

Are we moving too fast, if so, where's the top?

Let's explore. πŸ‘‡
1/ I'm going to explore both view points. Obviously I love NFTs and my 3 years of experience may have me bias. critical with reading my stuff.
2/ NFTs as a piece of technology that can revolutionize digital ownership is most likely here to stay.

Spearheaded with a few stand out markets such as gaming, art, collectibles which are proving the use case.

BUT there are some heavy accelerators here we need to consider.

- crypto people have 5-10x'd their wealth in 6 months
- crypto continues to appreciate
- media love big sales numbers = mainstream FOMO
- social media lights fire to everything
- Entrepreneurs validating this 'hobby'
- Projects are starting to bridge the gap well
6/ The above points coupled with a hotbed of innovation due to the versatility of the tech feels like we're at the start of something huge.

BUT, markets traditionally have been hyped in the NFT space, (because the demographic was small).
7/ This is the first time, the onramps provided have opened the door to 100-1,000x + the user/collector base.

So a lot of us are betting on projects, artists that will appeal to the masses, (and ofcourse ourselves).
8/ What are the threats?


- If the industry fails to penetrate mainstream before crypto markets correct.

- New projects/industries attracting hype.

- Secondary market being disappointed

- Bitcoin/crypto volatility
If ETH goes back to $400, will we still see $1M NFT sales?

This means someone has to down 2,500 ETH. A LOTT of money even for a crypto-native.

This may burn non crypto investors/collectors as crypto people may want to pull their $ out. (has happened many times before).
On the other hand, if the Beeple auction does $5-10M, more media and collectors will rush to participate.

That's the assumption many investors are taking, at least in the art market.

NBA top shot is whole other beast. Aint even going to try break that down.
At the end of this bull market, if we correct heavily then NFT projects that still have majority crypto-native investors might also be subject to that correction.

As proven in the past.

I personally feel confident in projects breaking out to attract mainstream $/creators.
Mind you, the NFT industry has been steadily climbing for 2-3 years even before this madness.

So whatever crypto/USD people do, there already IS a community that highly value their NFTs.
NFTs also seem to be a way to socially signal you are part of a community, collect a certain artist, etc.

As internet culture evolves with social media, it seems NFTs will be pegged to this growth.
Main points,

- Ample room for growth
- Crypto swings will shock some projects, (both positively and negatively)
- Long term should survive
- Study and know/love what you're getting into
Here's a YouTube Video for a deeper dive!

β€’ β€’ β€’

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More from @DCLBlogger

21 Feb
I've added $300k worth of Art/Collectibles to my portfolio in the last 7 days.

This is my strategy/rationale.

(Pure investor brain activated).

1/ Firstly, this is HIGH RISK.

I'm a Risk On investor who either hodls long or trades positions so plz don't FOMO.

DYOR x 10. My Twitter is just to share what I'm thinking/doing which comes with 3 yrs of experience.

Be very careful. Ok, let's continue.
2/ If we're REALLY seeing the birth of the whole collectible industry going digital, then the play, (as a pure investor/collector), is,

- Who's art do you like
- Who's art will be significant
- Which artist/creator will push the limits of their career.

This is my thinking ^
Read 15 tweets
14 Feb
NFT Trading Alpha's🀫

One of the most lucrative spaces in #crypto right now.

Let's explore πŸ‘‡

2/ Calculate Hype.

Understand the below graph.

Which phase of the project life cycle below are you entering at?

There are some STRONG parallels between traditional chart trading and NFT 'trading'.
2/ Negotiate.

One of the best things in this space is everything can be negotiated. Especially if you buy bulk.

beneficial for seller because you're helping them exit/liquidity/get eth.

You get a lower buy price. Gives you a risk buffer.

Read 13 tweets
11 Feb
Let's explore long term NFT investments,

Art, Gaming, Virtual Land, Utility.

What's here to stay for 2-3 years, thus being a good long term hodl.

1/ Thread πŸ‘‡
Generally there's 2 types of NFT investment categories.

Short term - Flipped while volume is high. Bought early, sold almost asap.

Long term - Held on to as the project matures.

We'll explore the latter. (At the tail end of below graph)
3/ @AxieInfinity Mystic Axies.

Mystic Axies were rolled by luck 3 years ago during the presale. No more will be released.

There's ~1,400 of them and the price has been steadily increasing from 0.6 ETH to 4.5 ETH today.

Reaching 10+ ETH at one stage.
Read 15 tweets
6 Feb
When I see a big #NFT sale, (6-7 figs), this is what I look at to see if legit.

- Is the buyer/seller known?

- Is the buyer new?

- Has the project had big sales before?

- Is it a new project with a random big sale all of a sudden?

- Total users of the project,

1/ πŸ‘‡
- Was the sell price determined by a bidding process?

- Does the wallet have history

- Is the project legit/new?

- Is it a fair price looking at sales history?

Projects/community are realising, the easiest way to keep a project relevant or make new project viral is big sales.
And like I said before a whale can easily throw down $500k or $1M to get eye balls.

There generally is no problem with anon-new buyers but the above when compounded usually means some fishy business going on.

Especially when too many anons
Read 4 tweets
5 Feb
Navigating NFT Twitter Hype.

The good, the bad, the ugly.

Let's explore how whales, traders and investors influence NFT markets.

Thread 1/
2/ Not here to 'call out' or judge. Just bring trade tactics to light.

So newbies can navigate the madness.

Also, 'hype' sometimes happens naturally.

Mostly it's just the community passionately sharing progress and growth which gets accelerated due to crypto $.
3/ This pattern ALWAYS repeats. (Usually by a small % of the community).

1 - Early Investors buy,
2 - They hype/promote
3 - They sell,
4 - They take profits elsewhere,

As long as there's liquidity they can continue the operation.

Truly understand this cycleπŸ‘‡
Read 26 tweets
21 Jan
With alts starting to POP, here is my top 11 #NFT related #cryptocurrency picks.

Mix of mid-low caps,

Hodling for most of 2021,

YouTube Vid + Thread πŸ‘‡


This is based on price appreciation, taking into account, network effect, social presence/channels, community, exchange visibility, etc.

Don't get upset if I didn't mention your project, this space is moving too fast to keep up.

(In no particular order).
. $MANA - @decentraland

OG projects have had the time to build and be ready to showcase in 2021.

- socially shareable,
- community is growing,
- HQ's of large companies like Kraken, Binance, Matic, etc dropping,

Maybe a virtual silicon valley?

MC: $178M Price: $0.13
Read 14 tweets

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