Our take on MAYC #5750 IPO’ing on Rally

Welcome to NFT Insider for January 17th 2022 – FREE issue, brought to you weekly by Alts.

We’re rushing to get this one out today, hot on the heels of the news that Rally is IPO’ing a mutant ape.

But just before we kick-off, just a reminder that our Discord is live and the NFT channel is an everyone-welcome place to get tips and swap opinions with other NFT fans. The community is friendly, helpful, and the invite is open to all. Come on in.

And coming up…

Stay tuned for a VERY cool podcast with NFT influencer Veg Surfer. We recorded the chat just last week and will let you know as soon as it’s ready for a listen.

NFTs in 2022

NFTs continue their strong performance this year with established projects such as CryptoSkulls gaining steam and with the introduction of new projects such as PhantomBears maintaining strong sales.

Price data are taken from Rally and Otis fractional platforms.

Looking at the value of the NFT market more broadly, total daily sales are ranging between $50 million and $100 million in a cyclical pattern, as noted last week. The last three Sundays have seen the highest sales volume of each respective week. Sales cool down, relatively speaking, during the weekdays and then begin to pick back up as the weekend approaches.

For me, this speaks to the “fun” aspect of this category.

NFT Sales Volume over the past month, courtesy of NonFungible.com

NFTs Last Week

NFTs on Fractional Marketplaces

Price data from Rally and Otis fractional platforms

Let’s highlight some curious activity in the fractional marketplaces, starting with the Bored Apes. On Rally, Bored Ape #601 closed at $49.50 per share, putting the market cap at $817k. This is despite the current floor price for Apes standing at $280k.

Is Ape #601 particularly rare? Not according to Rarity Sniper, which puts its rarity rank at 7,812, or rarity.tools which puts its rarity rank at 7,522.

Ape #601 isn’t particularly rare, but it’s valuable

We’d like to offer a possible explanation. Could Rally be benefiting from its branding of the Apes? Unlike Rally, most Ape owners can’t attract thousands of views to their particular Ape. Rally has some of the most recognizable Apes in the space – regardless of rarity – thanks to its marketing machine.

What do we mean by the Rally marketing machine?

Well, its website, Twitter presence and followers; not to mention the various forms of apparel that Rally sells to commemorate their public offerings: hats, pins, shirts, and other items for other assets.

This begs the question, is rarity as important as brand recognition? Is the provenance of the Ape belonging to Rally driving the price up for investors that are unable to buy an Ape outright?

If so, this is a good thing for fractional investors who bought low and have benefited from share appreciation.

But what would be most telling is if a buyout is ever up for a vote. Hypothetically speaking, would an outside buyer be willing to pay more than $1 million (at today’s market value) for Ape #601 when the same buyer could buy three Bored Apes at floor price?

Could it be that more seasoned traders are taking advantage of new entrants to the space? It’s a possibility, but we tend to give investors the benefit of the doubt. Sometimes markets don’t make sense, and sometimes they just don’t make sense to us.

NFTs on Opensea

We released our most recent NFT Insider on Jan 13th, so the turnaround in OpenSea rankings to today’s issue is about four days. In that time, Bored Ape Yacht Club has assumed the top position in volume over the past week. The Apes have now reached an astonishing floor above 83 ETH.

World of Women has also gained about 1 ETH in the last four days, as has the Mutant Ape Yacht Club, one of which is IPO’ing on Rally today (more on that in just a sec).

CryptoSkulls has jumped from 7th to 2nd place in under a week

Still going strong and holding onto a solid floor nearing 6 ETH is the Nike-owned Clone X.

Any other time I’d be creeped. Not with CloneX.

NFTs This Week

Fractional Marketplaces

As of this writing, there have been 71 Mutant Ape Yacht Club sales in the past 24 hours at an average price of 18.1 ETH, or about $60k. There are 20,000 MAYC in existence, with this Ape in the bottom 35% in terms of rarity, putting its price a few notches below $60k. The current floor price for MAYC is $52k. With its purchase price of $57k, Rally is offering this Ape at a 22% markup.

Mutant Ape #5750

Market Cap: $70k
Inferred Value: $52k – $56k

Retained Equity: 0%
Date: January 17, 2022 @ 12 PM ET, on Rally

Recommendation: [INSIDERS ONLY]

I’m melting, melting. Ohhhhh what a world, what a world!

Interesting projects elsewhere

Cryptoys

  • A new Play-to-Earn game built on the Flow blockchain
  • Minting will drop sometime in Q1 of 2022
  • The project combines the love of collecting with playing, earning, and owning all your digital assets
  • A fully doxed development team that believes in the power of storytelling to build the brand and the game to bring it to life to its users
  • Backed by Andreessen Horowitz and DapperLabs among other companies and venture funds

Join their Discord channel here.

Cryptoys could be developing the next great game

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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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