- Bear markets make people reassess their investment strategy
- Risk aversion increases
- The shift to fundamentals
๐๐ See tweet 9-12 for some interesting floor statistics
3/ Like most of us, I first discovered #NFTs in the ยซpost-BAYC eraยป.
And despite still being early in the grand scheme of things (August 2021), I remember feeling discouraged seeing blue-chip projects trading at, what was to me, unobtainable levels.
4/ Having experience from TradFi, contemporary art, watches etc, I was no stranger to investing โ but I was a stranger to spending $10-100k on a JPEG.
5/ But after engaging and digging more into the space, it quickly became evident that owning these said JPEGs was not just about the picture per se, but about communities, crypto and digital arts history, return on investment, online flexing, and more.
6/ Like many others in this space, my dream was to aquire one of these blue chips โ namely CryptoPunks and Bored Apes.
However, after seeing prices sky-rocketing last fall, I eventually found solace in knowing Iโd never be able to afford one anywayโฆ
7/ ENTER: Bear Markets ๐ป
This is where things change.
This is where the game is redistributed, and opportunities arise for those with liquidity.
Or for those that knows what to look for.
8/ Despite ETH falling 80% ($4800-$960), most projectsโ floor prices have fallen too.
30 days ago, ETH was $2,000. One would think todayโs ยซblue chip projectsยป would increase its ETH floor price, or at the very least maintain it (which would STILL equal a -50% loss)
9/ Think againโฆ
The last 30 days ๐*
๐ BAYC is down from 96-87E
(-57% total loss)
๐ Mutants are down from 19.3-16.5E (-59%)
๐ Moonbirds are down from 26.4-17.9E (-67%)
๐ Doodles 13.45-10.8E (-61%)
10/
๐ Azuki down from 12.9-9.4E (-65%)
๐ CloneX down from 13.6-9.18E (-68%)
๐ World of Women down from 4.5-4.2E (-55%)
๐ Veefriends down from 7.88-7.4E (-55%)
๐ Otherside down from 3.15-2.17E (-69%)
11/ Now, to the projects that manages to INCREASE their floor price:
๐ CryptoPunks UP from 52-55.5E (total loss -49%)
๐ Damien Hirst - The Currency UP from 4.3-8E (total loss only 10% โ๏ธ)
12/ I was not able to not find ANY blue chip (highly sought after) PFP project other than CryptoPunks/V1 Punks.
* All numbers are from NFTpricefloor.com (they aggregate data from multiple MPs).
* Prices may have changed from the time of writing to the time of posting.
13/ Lessons learned ๐
What this tells me (you are free to draw your own conclusion), is that history is one of the strongest fundamentals in NFTs.
And that hype is one of the worst.
14/ What this tells me is that newer ยซtop-tier projectsยป like Moonbirds, despite having millions upon millions in VC-like funding, has low consumer/customer confidence.
New projects may rise quickly (grrgrggglll goblin sounds), but they sure drop quickly too.
15/ What this tells me, is that NFTs tends to fall when ETH falls โ resulting in a double hit. Even when ETH is halved (!).
16/ What this tells me, is that investors become increasingly risk averse in bear markets โ even after a 60-70% drop.
And that many ยซseek refugeยป in NFT projects with strong fundamentals.
17/ Donโt get me wrong, I would love an ape one day. But what exactly are the fundamentals for apes, mutants and land assets to appreciate, except for hype-creation from YugaLabs and relying on constant engagement from the community?
18/ Hype dies. Engagement varies. History is forever.
That is why I believe investors in NFTs turn to the ยซsafestยป bet of them all โ the pioneer of the digital avatar/PFP revolution.
The project that changed NFTs entirely.
19/ And with the same reasoning โ that history, provenance and fundamentals will matter the most at the end โ I turned to CryptoPunks V1.
20/ Partly because I couldnโt afford the V2, but mostly because I believe more in history โ and being the first โ and less in the importance of brands.
Even Yuga.
Being the original punk collection - the pioneers - the meme potential is huge.
๐ Why ENS will win the personal ID space
๐ My opinion on surname domains
๐ Why surnames are the biggest asymmetrical bets in the domain space
๐ How you can register great (and cheap) names
3/ With the semantics out the way, and with a clear understanding of why web 3 domains are highly significant technological innovations, let's get to it.
Ever since your first $BTC and $ETH investment back in 2016, youโve been a leading figure in the transition to the digital economy, paving the way for others.
Fast forward to now, you have one of the most important voices in NFTs, even sporting your
๐งต
#ENS domain for millions of followers โ whether they are crypto native or not.
You have been a pioneer in the space, empowering and inspiring emerging artists, female artists, entrepreneurs, and collectors. You have contributed in legitimizing NFTs and the whole CT community.
Because of your thesis "everything is turning digital", you were able to see where most people were blind, and you were able to have clarity where most had doubt.
However, your journey is not due to luck: from the very get-go you had a growth mindset, eager to learn and develop.
"The Oracle of Omaha"
"The greatest investor of all time"
His track record is undeniable: between 1965 and 2020, Warren's investment company #BerkshireHathaway has yielded an avg. annual return of 20%, almost double that of the S&P 500.
But his success is not due to luck.
At age seven, he borrowed a book called "One Thousand Ways to Make $1000". He bought his first stock at age 11.
He went on to study economics at Colombia under Ben Graham, and he was the first student to receive an A+ in Graham's class
"The VSP is a utility-first sports NFT project providing ways for fans to connect with athletes and unlock access to world renowned events and once in a lifetime experiences."
This will be THE sports NFT to own ๐๐ฅ๐ฎ๐๏ธโโ๏ธ
@vaynersports@ajv The mint was .155, so it's not that much more expensive on OS now. I just bought off of OS with the low gas. I have read that the mint process was bad, high gas and some issues. I think this is behind us, and will if anything provide a lower entry point for new holders. NFA, DYOR
As a big fan of Esports, Soccer and MMA, I chose traits that fitted my personal sports interests. However, by reading from the website "all pass yields the same access". So I don't know yet the differences in "sports traits".