NFTeasers #2 | What if all of these NFTs aren't just worthless JPEGs...?
Scoreboard | Poolsuite | NFTheory
Welcome 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. Occasionally, we feature upcoming drops and share why we’re bullish/bearish.
Our goal? Tickle your imagination on what might be possible in the space. Oh, and give you as much alpha as possible. When we win, we want our community to win as well.
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Welcome back to NFTeasers. On today’s episode, we’ll break down:
Scoreboard - how our picks from last week performed
DripVault Pick - our #1 buy for this week: Poolsuite
Hypotheticals - what if all of these NFTs aren’t just meaningless JPEGs?
Any investment professional would say that it’s ludicrous to evaluate the performance of investments on a week to week basis.
Fortunately for you, I don’t own a rotary phone or a suit.
I hope the graininess of this GIF reinforces my point.
I do plan to track the aggregate performance of our picks overtime so that we can account for daily volatility in ETH and any unforeseen fud (fear, uncertainty, doubt) that may arise.
Last week, these were our picks:
[Under .25ETH] Riot Racers Racetrack Land - at the time of the pick last week, the floor was .22ETH (~$990). The current floor is .45ETH ($2,025). Would have been a 1 week profit of .23ETH ($1,035), but wouldn’t recommend selling here.
[Under 2 ETH] Galactic Apes - at the time of the pick last week, the floor was .95ETH (~$4,275). The current floor is .4ETH + a free airdrop of a monke which could have been worth anywhere from .11-.3ETH. To be conservative, we will take the .11 floor, so the total value is .51ETH ($2,295). Would have been a 1 week loss of .44ETH (-$1,980). During the week, the Galactic Apes team dropped an announcement which potentially deemphasized the importance of single apes, but reinforced the importance of the monkes and introduced plans for a token (we think net bullish). This was never a one week flip play, but if you did sell after 1 week, you would have gotten killed. Fair is fair.
[Under 5 ETH] RTFKT CloneX - it has been a wild week for this drop. When I released the piece last week, details of the drop hadn’t been announced. For all intents and purposes, the public drop was at 3ETH and after some fud, a spam attack and a reschedule, the rest were sold (almost instantly) at 2ETH. The current floor for the pre-reveal “mint vials” is 2.63ETH ($11,835). This one will be a wait and see what happens, but I feel great about it.
[DripVault Pick] Floor Gen 1 - our DripVault pick was to grab one of the Gen 1, Group 1 early supporter tokens. At the time of the pick, the floor was .14ETH ($630). The current floor is .395ETH (~$1,780). Would have been a 1 week profit of .255ETH ($1,150). Again, I don’t recommend selling this.
So we had 2 up, 1 down and 1 “too early to tell”. Feels like I have a decent read on smaller entry point projects (which is where most of the “home run alpha” seems to come from), but we’ll continue to monitor in future weeks.
I don’t plan on releasing picks for specific price tiers every single week. At the end of the day, there are only so many projects that deserve your attention and resources. I’ll never force a recommendation to fit the newsletter structure or pump my personal bags if there isn’t one that deserves the airtime. I just don’t believe in that.
I will however, always make some sort of a play for the DripVault, whether it’s a buy, sell or trade.
This week, it’s all about Poolsuite. Holy shit, I love this project.
Poolsuite was formerly called Poolside FM and is positioned as a “ultra-summer internet leisure conglomerate”. And boy, is it ever.
I think lifestyle brands built on top of web3 rails are going to fuel many of the biggest internet movements of the next decade. It’s why I’m so bullish on what we’re building at Sunday:Drip as well.
At the risk of sounding too much like a tech bro, I won’t drone on about the insane amplification of network effects that exists when community members become owners. I also won’t dive deep into just how much better web3 facilitates that transition of member to owner than any model that came before it.
I just won’t do it.
But if I did, my unnecessary next 4 paragraphs would lead you to the same conclusion…Poolsuite is gonna be massive.
Nostalgia. Marty Bell, the founder, created Poolside FM initially as a radio station, website and lifestyle brand geared towards an 80s retro Miami beach vibe. The site is different than anything I’ve ever played with.
F*ck white space, clean gradients and modern design. Marty and his team created something completely different from the norm.
Last week, they dropped 2500 “Executive Membership” NFT passes priced at .2ETH. They sold out in half an hour and the floor to buy in is now 1.2ETH.
It’s unclear yet what Marty and team plan to do with the ~$2M raised, but I’d like to be a part of it.
In addition to their smooth, tropical jams and retro website, the collection already goes to market with their sunscreen brand (Vacation) and has huge social followings. The point is that they know how to straddle the line between physical and digital and have a proven track record of execution (something rare in this space).
Oh, and Diplo is involved.
Swim at your own risk…we’ll be in the deep end at Marty’s.
It sure is easy for haters to hate NFTs, innit?
And to be fair, I kind of get the hate.
If I had no previous exposure to cryptoland and watched 24 year olds turn $800 into $250K while I toiled away in my middle management job, following the rules and hunched over in my shitty
cubicle home office, I’d be a little sour as well.
And not only did this 24 year old (who maybe used to shovel my snow for beer money 4 years ago) make more than I did in the past 4 years combined, he did it by “flipping a picture of a cartoon monkey?”
Yeah, I can see where the hate comes from.
Let’s be honest…there’s a good chance that all of these go to zero. A pretty high chance, actually.
But in the off chance that I’m right and they don’t, why wouldn’t they?
What if all of these “money laundering”
ponzi schemes NFT projects are not worthless JPEGs?
I think the majority of people are confusing what most NFTs actually are (digital property) for what they think they all are (digital art).
There are 3 major types of NFT projects today:
Digital fine art - these projects exist as standalone collectibles that typically have no roadmap or utility other than existing as a piece of art. The appreciation or depreciation of these pieces is largely dependent on the career trajectory of the creator and who gives them the “stamp of approval”
Club memberships/ownership stakes - each item in the collection may have interesting art attached, but its primary utility serves as a membership/ownership stake into a community (typically a max number of membership spots)
P2E (play to earn) game/land assets - each item is a component of a game or virtual world that is owned and sometimes can be rented out by a holder (typically a max number of game assets)
I was never much of a traditional art collector so the first bucket, digital fine art, is particularly hard for me to understand and evaluate price/value.
I know that historically, investing in blue-chip fine art has been one of the best performing asset classes, which is why companies like Masterworks [no free ads] have become unicorns.
Digital fine art is kind of one of those things that’s valued based on the eye of the beholder. If enough people with big bags say something is valuable (ahem, Fidenzas), then sometimes, the market gives it value.
From someone on the outside looking in, I can see why digital fine art could seem like a scheme.
Their mistake is that they think all NFTs fall into this first bucket. They are wrong and will miss what I think will be one of the great wealth creation waves of the next century.
Why are they wrong?
Let’s examine NFT bucket two, club membership/ownership stakes.
The following behaviors exist in the traditional world:
People pay money (sometimes a lot of money) to join exclusive clubs (e.g., country clubs, professional associations, wine clubs, etc.)
People are loyal fans to brands, artists, teams and movements that resonate with them
Scarcity drives FOMO which drives action which drives hype
The major issue with traditional models is that they aren’t optimized to align incentives between the member/consumer/fan and the club/brand/movement.
One-time money flows from member/consumer/fan → club/brand/movement and one-time goods/services flow back. It’s an incredibly transactional model that ignores the potential benefits of the long-term compounding that true incentive alignment creates.
In a web3 world powered by NFTs, tokens and blockchains, the benefits for the member/consumer/fan change dramatically. In addition to the one-time flow of money into the club/brand/movement for one-time goods/services, their membership is an asset that they own.
That asset can be sold if they no longer want to be part of the movement and/or entitle them to additional free benefits, profit shares and a whole host of other incentive models that haven’t been created yet.
What this does is that it more closely aligns incentives and unlocks true brand affinity. Affinity that isn’t present when members/consumers/fans are bought.
I believe this affinity will create compounding advantages for these clubs/brands/movements that has never been seen before because members are more or less incentivized to “work” 24/7 on behalf of the brand.
This means the creators/founders may get less of the pie, but the pies will get much bigger, much faster.
How was Bored Ape Yacht Club able to become a $1B+ brand in less than 6 months? It’s not because the monkeys look cool (although they do). It’s because they had 5-10K members that were owners in the club who were pushing/promoting/advocating the brand, all day everyday.
The NFTs in the game asset category follow a similar line of logic, but are potentially even better for the owner because they can also be used to create a consistent flow of passive income (e.g., rentals to other players, consistent unlock of tokens, etc.).
I’ll admit, most of these projects will die because the founders will lose interest or the community members will fractionalize their time between too many discords and eventually need to pare down and focus.
But the ones that survive will emerge as the next generation of mega-brands that people recognize all over the world.
Smart people have realized that it’s better (and more fun) to be an owner in a movement than to be an employee/paying customer of a brand that offers only transactional benefits.
If you’ve been sleeping on NFTs…it’s 6am. Time to wake the f*ck up.
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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.