I entered the world of NFTs in the past two months and was bewitched/obsessed for an intense few weeks. I hesitated for a long time as I had a long-held belief that art as an asset was for the rich and I was far away from what you label “rich”.
And I was probably a mid-IQer for a long period of time.
The switch in my brain came when SEC Chairman Gensler started all the FUD on stablecoins and I started to appreciate that it would be ludicrous for NFTs and JPEGs to be considered as securities by the authorities.
I then started to bond with the NFT apes and started my NFT journey.
Most NFTs Are/Will Be Worthless
Initially, I spent hours browsing through numerous projects listed on Opensea. It was pretty depressing browsing projects like Cryptopunks, Fidenzas, BAYC and even Hashmasks as I realised how poor I was. Feel like shouting HFSP to the 2018 me.
What I could afford was a mish-mash of projects like the ones below.
Together, they cost me a few hundred dollars including gas fees. It was mainly a learning experience for me testing out the Opensea platform and I bought, half expecting them to go to zero.
A few of them have actually already gone to zero.
There is an impending bubble in NFTs, especially the genre that merely serve as profile pics (PFPs). I think everyday, hundreds of thousands of PFPs are being minted across the different crypto ecosystems. Ethereum, Polygon, Solana, Terra, Avalanche, Fantom etc etc.
Seriously, how many PFPs do the whole crypto ecosystem needs?
Lucky To Be In A Small Profit
The past couple of weeks, I was active in numerous discords to ensure that I was able to participate in NFT mints, especially those in the Terra ecosystem. Even in this bubbly climate, I assessed them to be likely +EV plays.
I minted a total of 6 NFTs, 3 Galactic Punks and 3 Terrapins.
I have since sold 2 Terrapins and the proceeds have helped to cover the cost of all my mints and also the purchases I made on Opensea.
It was actually a huge relief when I managed to sell my first NFT for more than a thousand dollars.
Value Only Accrues To The Very Best NFTs
Just like how Michael Saylor says that there are no alternatives to Bitcoin and that there is no second best, the true picture is probably even more extreme in the NFT world.
No cryptopunk homage is probably ever going to overthrow Larva Labs’ Cryptopunks.
This is also why I took profits on my $OHM (took out capital and a little bit more recently) and purchased a small fraction (<1%) of Crypto Punk #7171 on fractional.art
It helps that Uncle Hoodie does appeal to me aesthetically and I feel a nice number like 7171 is extremely underrated.
I bought it at around 250 ETH valuation after doing a bit of research and finding out that most (esp aesthetically pleasing) Hoodie punks were transacting >300 ETH. I expect it to be a good store of value and perform better than stablecoin returns (10-20% p.a.) at the very least.
And who knows, maybe an airdrop in the near future?
If you are interested to find out more about fractional.art, here’s 3 articles that does it better than almost everyone else.
- https://medium.com/fractional-art/what-is-fractional-dd4f86e6458a
- https://momentranks.com/blog/what-is-fractional-how-to-buy-and-sell-fractionalize-nfts
- https://thereadingape.substack.com/p/talking-crypto-64-andy-from-fractional
By the way, it should be obvious that the above is not financial advice. If crypto/defi is high risk to you, NFTs are on an even higher level in my opinion.
And just like everyone else, I am shilling my bags. But if you think about it, better for me to shill something I own than not? What I can assure you is that I will not promote something while selling it at the same time.
Moreover, in the NFT space, actively promoting and marketing your NFTs is how a community and diamond hands are built.
Thanks for reading!
