Let's explore long term economics of NFT projects.
How do projects go from 0.1 ETH to 5 ETH, back down to 1 ETH then boom to 30 ETH?
How do flippers, hodlers, newbies, hype contribute to different phases of projects and thus effect prices?
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2/ We'll go off the above image. Hope it's clear, (zoom in).
It seems many projects follow a similar trajectory.
This is just my opinion through my experience 3-4 years here Full-time NFT investing - so of course DYOR, share what you know and don't take anything as gospel.
3/ Also much of this is relation to the whole "10,000 Avatars/land plots/loot/etc"
A fixed supply with ongoing demand at different periods.
This probably won't apply to Art, Virtual land or projects with much more supply/different value drivers.
Are we just buying "silly animal JPEGs" or is the most crucial parts of "The Metaverse", (Identity, culture, social), being onboarded right before our eyes?
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2/ For much of the world we're just buying "JPEGs" but for many of us it's something deeper.
Community, yes, but for projects/founders SERIOUS in building a legacy, 2021 - the year of the pfp is laying the foundations of a buzzing metaverse.
3/ We've seen some interesting road maps.
- Some are building 3D avatars, taking them virtual.
- Some are doing airdrops
- Some have locked content areas
- Some are building games
Some are doing all the above ^. Let's dive deep into what 2022 and beyond might look like.