Riding Out The NFT "Bear" Market

Welp, let’s admit it….

We were playing a game of hot potato for a few months there. Some of us walked away with life changing sums of money in NFTs and there’s still plenty to be made but the crypto bull run has changed everything.

After speaking to a number of “crypto natives”, they all seem to be of the mindset that we are in the midst of an epic bull run which will last through early 2022. If that is in fact the case, NFTs are going to experience continued price compression.

While it’s impossible to predict what tomorrow will hold in the crypto and NFT space, one thing is definitive: we have not yet experienced a truly sustained NFT bear market. Yes, 2018 - 2020 was tough for early adopters but this is a new wave.

That said, we are in the midst of a literal renaissance. While the prices may fluctuate, the movement is here to stay. So how do you play this out? Here’s what I view as the “perfect” crypto position is at the moment:

  1. Your NFT portfolio is 95% high-conviction pieces that you will hold for multiple years
  2. You have liquid crypto that is yielding interest during the bull run. The way that defi people do this is borrow against their ETH in a stablecoin (like USDC) and then they farm with that capital, providing a nice multiplier on their gains during the bull. Don’t understand this? You can go get 4.9% interest on your ETH on Lido Finance and forget about it.
  3. As the bull run peaks (because you are perfect at calling a top), you migrate back into some liquid ETH so that you can buy the wildly price-compressed NFTs. Maybe you picked up a couple discounted pieces along the way.

It’s as easy as 1, 2, 3. Obviously I didn’t make this trade but I’m just saying that some genius did and some of that opportunity still exists.

Hot Trades Attendees of yesterday’s morning Nifty Alpha Twitter spaces learned about a Solana NFT called “Tungsten Cubes”. They are literally backed by metal which you can redeem should you wish. All of them are literally just a rotating image of a cube with various properties indicating the amount of tungsten you are entitled to.

It’s absolutely ludicrous given that tungsten isn’t all that expensive. What made this NFT special was that it’s the first that will supposedly be listed on FTX which also coincidentally raised and eye popping $420,690,000 at a $25 billion valuation yesterday. That’s quite a Series B.

Anyways, if you bought one at mint for 1 SOL, you made up to 30X as that’s what the cheapest one was selling at earlier in the day. As of writing it’s hovering at around 23.5 SOL or a nice 23X.

The other trade of the day which we discussed on our YouTube show was CreatureToadz which is a mixture of Creature World art and Cryptoadz, two popular NFT projects. I bought one and it’s up 2X+ but I’m feeling quite nervous holding items like this at the moment.

Everybody in this space is wildly ADHD and there is a trail of zombie projects (like zombie startups) which are chugging away but not getting hype anymore.

Finally, 10KTF, a project which everybody now assumes is run by Beeple, revealed some information on their Twitter account implying that you will be able to use some of their NFT supplies to earn other NFTs. In this case, my Thimble and Super Clean Cotton Cloth can be used to create socks. What does this mean? I have no idea but it’s pretty fun discussing on our YouTube!

If you haven’t subscribed to our YouTube, go do it. There’s nothing serious about it but we do occasionally share some great insights. If you want to see us lose money live on air, check out this snippet from the other day.

Finally, I’ve been MIA from updating this email for a few weeks while I grind out some projects but expect some major updates coming very soon!