NFT Insider – Dec. 8

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Updates from Last Week

There were two offerings last week, and a familiar NFT project sits atop the OpenSea market for the second week in a row.

Two weeks in a row that The Sandbox takes the top spot on OpenSea.
  • Last week, Rally offered “Fedora” CryptoPunk #5883 at a market cap of $600k. Rally purchased it for $500k, and despite the 20% markup, we gave it the Buy recommendation. As of this writing, Fedora Punk is 85% funded.
  • Otis also offered “Bold” Chromie Squiggle #2241 at $1 per share. The offering was 100% funded within 24 hours. We also gave a Buy recommendation on this one. Despite Squiggles’ recent dip in value, this “Bold” piece was priced just right.

The Sandbox

Yet another week passes by and The Sandbox takes the top spot on OpenSea in sales volume. We will be monitoring Metaverse land purchase in the months to come. Decentraland was 10th in volume, and Cryptovoxels was 41st, up 28% on the 7-day.

Wolf.Game

Wolf Game dropped to 12th in sales volume on OpenSea. The floor price has decreased for the second straight week.

[Enter Crying Wolf Joke here]

Two weeks ago, the floor price for a sheep was 3.6 ETH. One week ago, it stood at 0.65 ETH. Today it stands at 0.315 ETH. While the developers will soon enter Phase 2, which could lead to a price bump, this reminds how volatile the NFT market can be.

There is money to be made — especially if you’re an early adopter — but for every investor selling at 3.6 ETH, someone is holding at 3.6 ETH. We cannot emphasize the volatility of these markets; collectibles, land, and games — everything.

RTFKT CloneX

If you missed the RTFKT CloneX mint last week – it may have been a good thing. The developers were criticized for suspending their minting. Some suspected the team was unhappy with the sale prices during the Dutch auction, which started at 3 ETH.

A Dutch auction starts at a pre-set price and then works its way down as more and more collectors mint at their desired price. The project sold out anyway.

The floor currently sits above 3 ETH (3.3) and has been one of the biggest sellers on OpenSea. The Clones have yet to be revealed, and it may be at least another week until they are — which gives the floor more time to climb. Some fans are not happy with the delay.

This vial is waiting to be unveiled.

This week

Rally will be IPO’ing Elephant Meebit #11275. Only 1.3% of all Meebits are Elephants, or 256 of the 20,000 Meebits, making this a rare example. The most recent Elephant sale was for 44.5 ETH ($101k) on Dec. 2. Rally acquired its Elephant Meebit for $125k on Nov. 13.

Rally is offering Meebit #11275 at a $160k market cap. The current floor for an Elephant Meebit sits at 25 ETH ($107k) on OpenSea. There have been four sales of Elephants recorded on OpenSea since Rally acquired Meebit #11275. They are:

New IPO’s

  • Elephant Meebit #11275
  • Market Cap: $160k
  • Inferred Value: $100k – $114k
  • Drop: Rally this week
  • Recommendation: [Insiders Only]

This Meebit can’t fly, but it is fly.

Undervalued assets

Meebits

  • The average Meebit sale has averaged 5.5 ETH in the past year. In the last 90 days, it has held steady in the 4.5 – 4.9 ETH range.
  • Meebits is the second PFP project released by Larva Labs, the creators of the CryptoPunks.
  • The floor for a Meebit on OpenSea stands at about 3.35 ETH, or about $14k.
  • One Meebit recently sold for just under $12k.
  • This is a blue-chip project — not nearly on the same level as BAYC or the Punks — but still a widely recognized set of PFP NFTs that can be purchased at a discounted price this month.

Assets to Watch

Illuvium

  • Illuvium is an NFT role-playing game that will launch in the first quarter of 2022. It is in line to become the biggest NFT game of the year.
  • The developers are highly regarded with previous game-developing experience and have released one heck of a trailer.
  • The game will be play-to-earn, but the tokenomics of the project has gamers and investors excited.
  • The $ILV token was released in March and is currently trading at $1,300 on binance. Additional $ILV is earned by staking the token.
  • Here are a few great videos to help explain the game: video 1 and video 2.
  • Here’s another video on staking $ILV. *Not financial advice.

Could be the breakout game of 2022.

Industry News

We’ve used this section to write about decentralized autonomous organizations (DAOs) in the last couple of issues. This week we’ll continue to do the same but not with individual DAOs looking to make a big purchase, but on an emerging DAO platform.

Enter Syndicate Protocol.

Syndicate Protocol is looking to use the power of like-minded individuals to pool their resources on the blockchain to invest in high-end assets. By opening access to investment clubs, Syndicate seeks to unleash the full potential of crowdfunding.

Syndicate also wants to create a social network within the economy that makes it easy for people to communicate, plan, and execute the vision for their DAO.

In essence, think of a Facebook for DAOs where you can pick — and sometimes need approval — to join a DAO of your choice. But DAOs are not Facebook groups. They still exist in a grey legal and regulatory area.

DAO’s have recently achieved some significant milestones that we can tick off in order: PleasrDAO, ConstitutionDAO, and DuneDAO. But each has its limitations or issues that have yet to be legally or financially ironed out.

Syndicate would handle the legal, procedural, social, and economic aspects of the DAOs by setting up standardized best practices (think gold standard for standard operating procedure) for every single DAO on the Syndicate platform.

If you think this is relatively easy, think again. ConstitutionDAO’s failure to secure a winning bid for the, uh, Constitution was in part due to its inability to quickly realize they could not afford the cost of transporting, storing, and setting up the Constitution.

There were more issues. Donors weren’t clear on whether or not they owned a piece of the Constitution. The group wasn’t technically a DAO since they didn’t have a governance token to bond the members at the auction.

Could this be the Facebook, er, Meta of DAOs?

It’s no surprise that one of Syndicate’s co-founders, Will Papper, was a leading contributor to ConstitutionDAO’s rise as it tried to secure a copy of the Constitution at a Sotheby’s auction.

People rising to buy something as historic as the Constitution aligns with Papper’s view of a decentralized future. Papper believes that having wide participation best embodies the crypto space’s communal aspect.

Imagine, had it not been for one ultra-wealthy individual, one of the few remaining original copies of the Constitution would have been under the governance of nearly 20,000 people. Papper’s vision is close to being realized.

Syndicate’s mission through its DAO platform is to remove barriers — social, financial, and physical — for retail investors looking to invest directly into top-tier assets or who want to pool their money to make a change they want.

Syndicate is currently in private beta mode with a handful of hand-picked DAOs looking to advance decentralized finance startups with varying social missions. One DAO on the platform focuses on helping minority-owned Defi (decentralized finance) companies, while another DAO is funding startups with non-binary, transgender leaders.

While Syndicate is currently hyper-focused on developing investment DAOs, they partner with other DAOs to share data and protocols. For instance, one new feature would be developing an on-chain track record that allows people to reveal their investment choices without doxing personal details.

This kind of “history” on the blockchain can be helpful for groups trying to find the right people to join their DAO. The “history” is especially key because very large DAOs face one of their biggest challenges with governance. Larger DAOs need to think about how voting works, and whether it’s one vote per member or based on token holdings. Governance and good tokenomics are essential for the long-term success of DAOs.

Investing will change and not just because of DAOs, but because of the promise of people coming together as investors and social actors to shape the future in a better way.

***Disclaimer: I do not own any shares in any of the assets mentioned in this email.

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Author

Horacio Ruiz

Horacio Ruiz

Horacio is a veteran math teacher of the New York City public school system. Prior to teaching, he lived in New Orleans where he worked in sales for the New Orleans Hornets before joining The Institute for Sport and Social Justice to rebuild homes in the Lower Ninth Ward and neighboring St. Bernard Parish. He currently lives in Staten Island with his wife, Alicia, his three sons; Oliver, Henry, and Jacob, and their pitt-mi,x Tipitina. In 2019, Horacio published a biography, The White Knight: Calvin Patterson and the Integration of Florida State University Football.

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