NFTs

  1. What are NFTs?

    NFT stands for “Non-fungible token”. Fungibility means a specific item can be replaced for another identical item. An example of a fungible asset can be currency; you can take five one dollar bills and exchange them for one five dollar bill and the value is exactly the same. Therefore a non-fungible token is an asset that is a one of one.

  2. How are NFTs related to blockchain technology?

    When an NFT is minted(aka generated) by a creator, the digital art is uploaded to a blockchain which is used to record proof of ownership and all future transfers of the asset. If the NFT is sold to a new user then the ownership of the NFT is transferred to the new buyer and recorded on the blockchain.

  3. Can’t I just “right click” the image?

    Yes! You absolutely can however you do not own the NFT on the blockchain. Say for example someone repainted The Starry Night. That repainting does not magically become the original Starry Night. Same idea with NFTs.

  4. Why are NFTs important?

    NFTs are going to revolutionize our future. Currently the market cap of the NFT industry is a staggering $22 Billion which is half of the market cap of the art industry and we are barley scratching the surface of the potential NFTs have in store for us. NFTs will go beyond the visible art and provide utility in means of staking, information, a DAO, play to earn video games, and much more!

How to trade NFTs

  1. Things to know before you start buying

    Before you jump into buying NFTs please understand the following: this is not financial advice and digital assets are very very very risky and can go to 0. Please do not invest more than you can afford to lose. The NFT industry is currently in a price discovery phase and is illiquid. This means that when you purchase an NFT to flip, another NFT nerd has to actually to buy it. This might be common sense, but realize there is not market maker. A market maker is a dealer who can buy your position at all times and at fair market value so cashing out is not easy. For example you can sell your Apple stock at any time during market hours for a fair market price. While in NFTs you need to find an actual buyer by the means of selling at a lower price or searching on Discord.

  2. Which blockchain?

    For a beginner I would suggest WAX, Solana, and Polygon NFTs as these cryptos have the lowest gas fees(aka processing fees). I would highly suggest staying away from Ethereum because gas can cost $100 plus the cost of the NFT.

  3. What marketplace should I go to?

    For WAX NFTs I would suggest staying on the Atomic Hub as it is the most traded marketplace. For Solana NFTs I would suggest only using Magic Eden, the leading Solana marketplace. In order to purchase Solana NFTs you need to create a Phantom wallet. In order to buy Polygon NFTs OpeanSea is one market place that has polygon NFTS but also be aware majority of OpeanSea NFTs are listed on the Ethereum blockchain. For Polygon and you will need a MetaMask wallet.

  4. White List

    All NFT projects begin with their initial fund raising, called the mint. The mint is when the NFTs are first inscribed on the blockchain. A customary project will create a twitter, discord, website and anywhere from 1-12 months they will pick a date for their mint and set a price. Investors will then pay the mint price plus gas, transaction fee, and then receive their NFT. All proceeds raised from the mint go directly to the project. Those who are able to mint, or buy, these NFTs at the initial price is dictated by if they have white list. White list spots are allocated by the team, and people can earn white list in numerous ways. One way is contributing to the community, this can be inviting people to their discord server, making fan art, or being an active person. Another way is through DAO collaborations, this is similar to when in the a stock IPOs, the bank taking the stock public allows their top investors an opportunity to invest pre IPO. In the NFT space, DAOs can request white list spots to allocate to their community which is one way to earn white list to upcoming projects. However, when projects have loads of pre-mint hype, white list can be difficult to acquire and therefore prices on secondary will reflect this scarcity. This is why I tell most beginning trades to gather as much white lists as possible and hopefully score on a banger project. It is also good to note that afterwards, all trading on secondary market, besides the royalty percentage collected by the project between usually between 0-10%, does not go to the project. Although a simple concept, it is crucial to understand this as a project could have a high floor price on secondary markets, but may not have sustainable sources of income and therefore the team is making little to no

 

NFTs I Own

Bellow is a summary of my NFT holdings. For the most recent and detailed analysis see the home page.

 
 
 
 
 
 

WAX NFTs

You might be familiar with the collectable brand Funko which has partnered with WAX to roll out monthly, collectable Funko NFTs. How the drop works is you purchase packs which give you cards of different rarities. If you are able to get a rare card you are able to redeem the card for a physical collectable but in the process you burn(aka completely destroy) the NFT.

 

Solana NFTs

 
 

Realized Profit: 304%

6 RINGS is an homage to the 6 championship career of Michael Jordan! This collection of 5005 bulls will provide the holders with early access to experiences on the HEIR app, prizes, utility, and upcoming HEIR mints. In the near future, HEIR will be partnering with athletes to mint huddle collections. A huddle collection would provide holders with increased personability with the athlete. Not only does this create a community for the athlete but this will also allow younger players to have another source of income. Additionally, let’s imagine that the number 1 pick this year creates a huddle NFT. A 6 RING NFT provides you the ability to buy the huddle and you hold. Fast forward one year this player becomes the next star of the NBA. That huddle NFT has increased exponentially in price. The HEIR team is not only trying to build a personalized basketball community but also the ability to “invest” in players. Another reason I like this project is because of the team. Of course I like Michael Jordan is behind this project for branding purposes but the team is stacked. Jeffery Jordan has any and all connections he needs to support this project, Daniel George is the marketing executive and is the founder of agency Limitless Creative, and lastly Jeron Smith is the former CEO/co-founder of Stephen Curry’s Unanimous Media. Additionally, the company raised $10.6 million in a round led by Thrive Capital. Some investors can include Alexis Ohanian, Co-founder of Reddit, William Wesley, New York Knicks executive vice president, and many more! I minted two bulls for $220 each, sold one at $670 and keeping the other long term. The 6 RINGS collection is on Magic Eden.

 

Realized Gains: 50%
This project is a little different, so before I can provide my analysis I must give the background and history about Monkettes. Monkettes was first a copy cat project of Solana Monkey Boys, 200+ SOL project. A pure joke, all SMB holders were given a free mint and they made some pocket change. As the weeks went on, the Monkette discord became a boiling pot for joking, insane alpha(remember only SMB holders had Monkettes), and just pure comedy. If you pop into the discord as of right now, it is the exact same. The chat is ALWAYS moving, with whales just having fun and dropping very, very insightful alpha. The prime example on how a community should be centered around, a welcoming, enjoyable, and knowledgeable collection of holders. Now the founders, rightfully so, want to upgrade the art of Monkettes and no longer be recognized as a joke project. This is how the Vibe Kingdom was born. First, they decided on allocating Monkettes holders 2 free mints and having the rest of the mint in SOL, but they changed it to a completely free mint. Now why is this bullish not bearish? Although at first it may seem like a free mint will reduce capital to carry out their roadmap. Until I realized that the Vibe Kingdom is sticking with their roots, community. They started out as a free mint and they are going to keep it like that. Their roadmap, its good vibes, community, alpha, just having a good time. Community is the single most powerful tool that results in a successful project.



Realized Gains: 300%

Transdimensional Fox Federation(TFF for abbreviation) is a collection of 7,777 extremely adorable pixelated foxes. TFF is made from Famous Fox Federation which is a $1,800 floor project. Famous Fox Federation is an extensive project that provides many utilities but I am going to expand on the most prominent ones. Famous Fox Federation has a white list token market. What is a white list? White list is when you are guaranteed to be able to purchase an NFT at mint price. White Lists are extremely important and is a business. Lets imagine an extremely hyped project made by Elon Musk came to Solana. White List spots for that project would be worth thousands as one could easily predict the project would go for an extremely high price on secondary markets. Famous Fox Federation provides a white list exchange market and charges a 2% for every transaction. There is no other white list token marketplace and Famous Fox Federation holds all the market share. Additionally, the project also provides a player to player exchange. On secondary markets such as Magic Eden, there a usual 10% fee on most, not all, projects. But if you trade between two people you can avoid most of the fees. Once again, Famous Fox Federation holds most of the player to player market share as well. My rational for buying TFF is that as their main project increases in value their secondary project will as well. In addition, the project has a thought out staking system that I cannot expand or else this paragraph will turn into an essay. The developers for this project are known to be one of the best builders in the Solana NFT space. I bought this cute little guy at $330 and they are listed on Magic Eden.

 

Brand NFTs

Niftys has partnered with Warner Bros. and Epic Game’s hyper-realistic MetaHuman Creator to create 100,000 unique Matrix Avatars. This is a very interesting project that the capital to invest into the project to make it successful in the short and long term. Niftys are very mysterious and try their best not to reveal information, but we do know that the matrix avatars will be given an option to choose the blue or red pill on January 5th. Keep an eye out on them before the pill drop!

 

Macys Thanksgiving Day Parade NFT collection was launched to accompany their annual Thanksgiving parade! They minted for free and you can purchase them on the Polygon blockchain on Sweet or OpeanSea!