NFT Insider — Jan 7, 2022

Welcome to NFT Insider for January 7th 2022, brought to you weekly by Alts.

Tons to cover this week, but before we kick off, just a reminder that our Discord is live and it’s free for all our members. Join the conversation and share insight and opinions with other NFT aficionados.

Podcast

This week, Horacio sat down with Les Borsai, Co-founder and Chief Strategy Officer at Wave Financial, an actively-managed liquid VC fund investing in crypto-assets since 2018.

Les is a former music executive who started the Wave Financial NFT Fund after noticing parallels between young musicians and NFT artists.

NFTs in 2021

While the broader marketplace has experienced a boom, the fractional markets have remained relatively stable. All the assets on Rally and Otis have found stable trading prices. Even with a tremendous increase in value for the Bored Ape Yacht Club, the Apes on Rally were already trading above the floor price.

Price data taken from Rally and Otis fractional platforms.

Looking at the value of the NFT market more broadly, total daily sales reached their second-highest levels since Oct. 4 with $116 million. This most recent peak has continued a wave of NFT sales that started about two weeks ago.

NFT Sales Volume 2021, courtesy of NonFungible.com

NFTs Last Week

NFTs on Fractional Marketplaces

Bored Apes are en fuego

On the secondary markets, trading remained relatively unchanged.

On Rally, the biggest mover has been Bored Ape #601, which is up about 10% from its previous trading price of $30 per share.

On Otis, assets stayed relatively flat, the most significant mover was CryptoPunk #543, which was trading at $9.49, up from $8 two weeks ago. The last trading price was back down to $8.15.

The assets on Rally and Otis saw a slight overall increase, with NFTs, in general, seeing a 2.3% increase week over week.

Price data from Rally and Otis fractional platforms

NFTs on Opensea

Bored Ape Yacht Club is the hottest project going, and it’s not even close. In just two weeks, the floor price for Bored Apes went up by 20 ETH to 73 ETH at one point.

The floor has cooled a bit and is currently at 67 ETH.

To truly understand how influential the project is, it has also carried the Mutant Ape Yacht Club, which had a floor of 6.5 ETH three weeks ago and is now at 14 ETH. The Bored Ape Kennel Club is at 5.75 ETH when one week ago it was at 4 ETH.

Apes can’t stop won’t stop

No other project can claim an original release and its two derivatives, all at a floor price of about 5.5 ETH and above. For the first time since writing the NFT Insider, the floor price for a Bored Ape has eclipsed the floor price for a CryptoPunk.

Eminem bought Bored Ape #9055 for 123 ETH. Oh, and Dave Chappelle bought Bored Ape #8343 for 99 ETH.

Ape Shady

NFTs at Auction Last Week

Damien Hirst

Two Damien Hirst NFTs were up for bid on Heritage Auctions. One of the NFTs was from Hirst’s Great Expectations collection, a generative art set of 10,000 editions that was inspired by Hirst’s design for Drake’s album cover, Certified Lover Boy.

The Great Expectations editions were airdropped for free to holders of Hirst’s Currency collection.

Great Expectations sold for $5,250, including buyer’s premium. This is a surprising result given that the floor price for these pieces is currently at 0.5 ETH (($1.7k) on OpenSea.

Number 2,467 of 10,000 from ‘Great Expectations’ is up for auction

The other NFT was a piece from Hirst’s Currency collection. We wrote about Currency’s option of either destroying the NFT or the physical artwork in favor of the other. The Currency piece sold for $25,000, including buyer’s premium. This is another surprising result with the current floor price at about $16k on OpenSea, but bodes well for the project.

Moral of the story: Sell your stuff from famous artists on Heritage Auctions.

TungstenDAO

TungstenDAO’s auctioned its 30th mint January 7th, ‘Scene of the Drop.’ It sold for 21.69 ETH ($70k).

TungstenDAO is a group that seeks to collect and create the most “memeable” assets. They’ve centered their memes around the popular tungsten cubes made famous by Bitcoin advocate Nic Carter.

Their first mint, entitled “The Density is Astounding,” sold for 42 ETH in October. Their second mint, entitled “Island Flexing,” sold for 38 ETH. Their most recent mint, number 29 and titled “Attack of Kai-Gen,” sold for 8.4 ETH.

The actual NFT is a video

NFTs This week

Fractional Marketplaces

No IPOs this week.

Undervalued Assets

Bored Ape #9159

  • Platform: Rally Road
  • Market Cap: $195k
  • Inferred Value: $275k

This “Leather Jacket” Bored Ape was IPO’d in November with a market cap of $195k. Since then, the floor price for BAYC has skyrocketed to $275k. This Bored Ape hasn’t hit the secondary market yet, and it may be another 1 – 2 months before it does, but keep this asset in mind when it opens for trading.

This is a Punk Bored Ape. The coolness hurts my eyes

Curio Cards

  • Platform: OpenSea
  • Market Cap: 9.5 ETH

Right now, the first 10 Curio Cards can be bought for a collective 9.5 ETH ($36k) on OpenSea, representing a 20% drop since November.

We think the first 10 cards are undervalued, considering their unique place in NFT history. The 30 different Curio Cards were the first NFT art project on the Ethereum blockchain, with 29,700 cards ever printed. The 30 images have varying degrees of rarity, with 111 editions of the rarest card and up to 2,000 editions of the more common cards.

The collection on Rally for Curio Cards 1 – 10 has a market cap of $75k, putting its investors underwater by a wide margin. We valued the cards at 11.8 ETH in early November (about $44k).

So whether you have the funds to buy a complete yourself or potentially wait for the set on Rally to begin trading, there could be an opportunity here.

Interesting projects elsewhere

Lazy Lions

Floor Price: 1.5ETH ($5k)

  • A relatively affordable NFT (by NFT standards) with a floor of 1.7 ETH
  • A robust community and active Creators on Discord (164k members)
  • Former NBA player Charlie Villanueva and current Philadelphia 76er Andre Drummond recently bought into the project
  • The floor price has risen from 0.95 ETH a week ago
  • This project ranked #21 in sales volume for ALL NFTs in 2021

Primed Mind, a mindset coaching company, bought a Lazy Lion this week to use as part of its marketing campaign. They announced the purchase on a Twitter thread.

Lazy Lion #5043

Industry News

We’ve highlighted the “fight,” so to speak, between projects retaining commercial rights to their images and those projects that essentially have an open-source setup for intellectual property rights. You can read more about this here and here.

It was only a matter of time before the service industry got in on the action. On Dec. 27, Miami-based E11EVEN Partners, owners of E11EVEN nightclub, purchased Bored Ape #11 (bri11iant!), for 99 ETH. The purchase marks the first time a resort, restaurant, bar, or club has purchased a Bored Ape for marketing purposes.

For entrepreneurs and brand builders, the right to use your assets for business purposes – with no restrictions – will dictate the future of the space.

Yes, there are critical philosophical considerations, such as if web 3 can ever truly be decentralized without the predominance of open-source projects. Ultimately, though, it’s about ownership and the right to make money.

E11EVEN understands the importance of being at the forefront of the latest trends. Some might say that NFTs are more than trends (us), and in Bored Ape Yacht Club’s case represents a movement.

The NFT projects that rise to the top will allow others to benefit from the original creator’s success. These adapters can build spinoffs that will, in turn, create another ripple effect in the space and economy.

Project Creators should see that savvy investors and entrepreneurs are more likely to invest in their projects and create increased value when they also stand to benefit financially (i.e. Lazy Lions).

Yuga Labs understands this, which is why the Bored Ape franchise has become the preeminent collection in the NFT space. Future creators should take notice – 4156 with the mic drop.

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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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