NFTeasers #13 | I introduced 3 people to crypto this week and this created a lightbulb moment for all of them
Scoreboard | Macro | Incentive Models
Welcome back to NFTeasers from the Sunday:Drip Society crew. Each week, we explore the wild world of NFTs, from high conviction buys to hypothetical scenarios/predictions for your favorite projects.
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On today’s episode, we’ll break down:
Analysis of our past performance
Web3’s incentive layer will amplify attention in areas people already love
Current DripVault value is estimated at 14.77ETH (~$38,400) (14.67ETH in NFT assets + .10ETH liquid) on cost basis of 2.41ETH.
The jump week to week was due to an appreciation in BYO assets (specifically land and pills) as well as our 9 regular Shadow Quest warriors 2xing from mint (mint was .079E and floor is .15E) and our Samsar 10xing (floor is .81E). If you’re new here and all of that sounds like a lot of mumbo jumbo, don’t worry!
It was a relatively slow week in NFTland.
The general vibe across all markets feels ominous with the backdrop of the Russia <> Ukraine conflict escalating. I think it is generally expected that we will see a sell-off of some kind in the next few months across equities, crypto and NFTs.
As we’ve said before, NFTs seem to act as a bit of a crypto hedge (in ETH terms) so if you believe in ETH ultimately being worth much more than it is now, a market sell-off in dollar terms might hold or increase your NFT positions in ETH terms.
Tough to predict the way the next few months will play out, but we seem to be headed for choppy waters.
As we’ve mentioned before, we’re not going to force plays in the DripVault unless we’re confident about them long-term. I didn’t see moves this week that I was confident about so we stayed put.
While Roman and I initially seeded the DripVault with NFTs from our personal holdings, the goal has always been for the vault to be self-sustaining, both by selling old positions and reinvesting the gains and by allocating a portion of earnings from collection drops.
Other than our Genesis Creepz for 4ETH, we haven’t sold any of our positions. Although I’m a big believer in the BYOPills universe, the recent uptick in prices is creating an attractive sell opportunity.
The combined floor for the BYOPill, Apostle, Land and Vape mint pass is 4.78ETH. We may look at selling some or all of these this week.
Web3 will amplify digital habits
I spent a lot of time this week talking to people who have no previous exposure to crypto or web3. They’ve heard about it through mainstream media and friends but haven’t yet participated themselves.
I love these conversations because they help me recenter and remember the first principles that got me so excited about this space in the first place.
When you’re trying to get someone to understand something as broad and disruptive as crypto/web3, it’s important to distill your messaging to the most dialed in value statements and get a light bulb moment as fast as possible.
One of the things that came up for me was the large number of use cases that could/should ultimately exist on web3/NFT rails.
Today, it’s art, culture, memberships and v1 gaming. Tomorrow it may be real estate, restaurants or dozens of other applications that will break our frames and current mental models.
The reason why all of these concepts will be reborn with a web3 slant is that crypto and blockchains enable us to add incentive layers to things people already love.
And that got me thinking…
What are things that most people spend the majority of their free time doing?
Creating/consuming content on social media
Playing video games
Making and sharing art
Shopping and sharing new products and services
For each of the above, you could say that some percentage of the population already has an unhealthy addiction to it…without any financial incentives.
Imagine what will happen when we add an incentive layer to each of these use cases?
Social media creators will be attributed and paid when their work is liked, shared and remixed.
Gamers will play to earn or play and earn through owning game assets and winning token bounties.
Musicians will release NFTs that grant portions of streaming royalties to fans and allow their biggest supporters to pre-fund their album.
Consumers will become owners of the brands they buy from and earn money from sharing products/services with others.
And this seemed to be a light bulb moment for multiple people that I talked with.
A pre-web3 frame wouldn’t think there was an option to own video game assets or earn money when a blog post is remixed and used in a Twitter thread.
As soon as I shared this concept with someone, their mind began racing with all of the things they currently spend time doing and how those could evolve with more tightly aligned incentives.
This felt like an unlock and a consistent way to achieve the lightbulb moment.
Now is this going to be good or bad for society…that’s another question.
There’s definitely merit to the argument that further incentivizing digitally addictive behavior could have worse societal side effects.
I think it’s too early to tell what the true downstream impacts of reinventing incentive models will be. For now, I can almost guarantee that they are coming and you’re going to want to take advantage.
We’re at a point in the lifecycle of NFTs that we need to find ways to get to these light bulb moments faster. We need a broader population of people that are comfortable with NFTs as a concept and participate in use cases that make sense to them.
Try explaining the value of NFTs to them using this ☝️
Subscribe to our other newsletter, Crypto Therapy
If you like NFTeasers, you’d also love my weekly web3 newsletter, Crypto Therapy.
It’s more of a quick hitter and covers interesting crypto topics broken into thinking (interesting crypto stuff I’m thinking about), alpha (tactical alpha plays), ideas (web3 products/services I wish existed), and building (interesting learnings from building Sunday:Drip).
As always, it’s completely free. Subscribe for Crypto Therapy here 👇
What is Sunday:Drip?
Sunday:Drip is a member-owned lifestyle brand built on web3 rails. This means our members will have the opportunity to become owners (when we release our token) and experience financial upside as the brand grows. Some members will also choose to take a more active role in helping grow the brand and will be rewarded disproportionately for their contributions.
Additionally, all members have the right to claim a myriad of other membership benefits including collection drop advantages, fractional ownership of the DripVault, lootbox partnerships, whitelists/giveaways, curated alpha channel, gated content and more.
The majority of our discord is member-only, but we’ve created a couple of public facing channels to help get you up to speed on what we offer.
You can read more about our member benefits here → https://discord.gg/afxf2b9EEU
You can read more about our strategy here → https://discord.gg/KR7jZ3heCM
Today, members can become a member by minting one of our sundae NFT membership passes here → https://sundaydripsociety.com
Owning a sundae NFT (pre-token) guarantees a token allocation and ownership in the brand.
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Legal Disclaimer: No information shared in NFTeasers is financial advice. All content is for entertainment and informational purposes only. Wavy Labs, LLC is not a registered investment, legal, or tax advisor or a broker/dealer