Bitcoin Hits ATH, NFTs Bleeding Hard

Hi! This is subvert. I’m a Cool Cat from Hong Kong.

Whether you’re a longtime friend or this is the first newsletter from me that you’re reading, a very warm welcome and I hope you find value in what I’ve written today!

_{Disclaimer: The content of this newsletter is not financial advice and does not constitute any offer or solicitation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial circumstances. Investment involves risk. #NFA #DYOR}

NFTs aren’t dead yet… but are bleeding bad

NFTs aren’t dead yet — over the weekend, collections like Peplicator (shoutout to the homie Goldy for the heads up) did extremely well, showing that there’s life in the market yet.

On the other hand, the rest of the NFT market seems to be a deep sea of red:

There’s a few reasons for this, outlined very well in the latest thread from Wale:

In case you don’t want to read, they boil down to:

1. Crypto going up, sell NFTs for more exposure

2. More ROI in other assets

3. No clear catalysts on the horizon

4. Execution risk

Well, is this a great time to buy the dip and what should you be buying? Here’s what I have my eyes on, from highest floor to lowest:

Bored Ape Yacht Club @ 14.69 ETH

One of the most recognisable NFT collections out there. Many OGs have left and the vibes are entirely different, but Yuga Labs raised $450M in their seed round funding at a valuation of $4B.

If the mainstream attention ever shines back on NFTs or if crypto goes up so much that people need to park their profits somewhere, this is a very safe bet to be a “flex” once again.

Captainz @ 4.10 ETH

Probably my best bet to be “the best NFT” of this cycle. Ray and Memeland were late to the races, but have delivered everything in impeccable quality since. They’re also arguably the first NFT to have launched their underlying token properly — without any DAO politics or nonsense and with plans for future use cases.

Otherside Koda @ 2.50 ETH

Definitely could (and probably will) go lower — saw 2.10 ETH sales a few weeks ago. The bet here is that Kodas are kings of the Otherside, which is a separate bet from Bored Apes. The supply is lower due to a bunch being stuck on lands, so actual circulating supply is only around 6600 right now. Ripe for a short squeeze whenever the time comes.

DeGods @ 1.42 ETH

DeGods are going through a very rough patch, and Frank knows it. His plan to save the club as CEO? To kick out the bad members, tank the floor price to zero and rebuild from that point. Honestly not a bad plan — only in those scenarios will you see exponential growth (circa Sappy Seals pump a few weeks ago). DeGods will go lower… but at some point it will stop, consolidate and rebound upon announcement of catalysts.

CloneX @ 0.63 ETH

This is a pretty ridiculous price for Nike’s official PFP. While the floor Clones look terrible, Nike/RTFKT has more ammo in the tank when you see LeBron James wearing CloneX shoes. While if you’re trying to trade the floor you can use Flooring Protocol (scroll down for more), it might pay off to see if you can get some Murakami-trait grails at a lower entry.

Bored Ape Kennel Club @ 0.61 ETH

When Apes were trading for 150+ ETH and Mutants at 35+ ETH, Kennels made it to 15-20 ETH range — and Yuga Labs back then wanted to monetise this collection (which was airdropped to Apes a month post-mint and at 0% royalties).

The entire Trial of Jimmy the Monkey story arc will eventually lead up to HV-MTL exoskeletons fusing with BAKCs to form dogs armed with robotic missiles.

If Gordon and Garga’s plan comes to fruition, these will be badass. Would scoop up a boatload if these go to 0.3-0.4 range.

Trader Tip: If you simply want exposure to NFTs, Flooring Protocol is probably a far better way to do that. Each NFT is fractionalised into 1 million μTokens which change in floor price according to the underlying assets.

That means:

1) You can size up your bet in a denomination that isn’t a multiplication of the floor price

2) There’s opportunity for arbitrage when the fractionalised token doesn’t move as quickly with the floor and/or there is volatility on the floor

This newsletter is not sponsored by Flooring Protocol.

Well, that’s my time for today. As always — thank you for taking the time to read my work. I truly appreciate it.

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Until next time,

Oh, and did you know that we have a podcast as well?

Every week, I’ll bring on guests from around the world for short, bite-sized conversations. Episodes every Monday!

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_{Disclaimer: The content of this newsletter is not financial advice and does not constitute any offer or solicitation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial circumstances. Investment involves risk. #NFA #DYOR}