The Daily Alpha 4/23- A daily breakdown of the NFT market with some notes from The God. This is a more detailed version of my breakdown on Twitter. Any and all feedback is welcome!
Yuga Labs Otherside Officially Announced
After months and months of speculation, leaks, and rumors Yuga Labs officially announced their Otherside land sale will take place Saturday April 30th. I strongly suspected for weeks the launch would be today due to it being the 1 year anniversary of the initial public sale of Bored Ape Yacht Club. Late last night the smart contract for the land sale was committed to the Ethereum test net, revealing some new details about the massively hyped launch. Some new tidbits include a Dutch auction starting at 300 APE going down to 100. I’ll be writing a long form piece on this project later tomorrow but I am bearish on the short to medium term for this project based on the information we have so far. I do not believe a metaverse of any kind is realistic anytime soon from Yuga Labs or Animoca. Bored Ape Yacht Club launched a year ago and didn’t raise most of their capital until recently. To think they’d have a full digital world experience anytime soon is just unrealistic. Sandbox has been in development for 4 years and still hasn’t launched a remotely interesting experience. With a 200k supply I see a lot of risks here, including impatience from holders to massive dilution of the Bored Ape brand.
Fallout From Akutar
More details continue to come out about the disastrous launch of the Akutar Dutch Auction last night. Of the 33 million dollars lost 11 million has been recovered, but the rest is assumed gone forever. A crushing blow to the founding team that now needs to refund bidders with treasury money. The overall tone of the community seems to be positive despite the inexcusable misstep by the founding team of not auditing their contract. My best guess here is it won’t impact medium term price action on the project. I wasn’t a buyer of this project either way, but the lessons to be learned here will be remembered by every creator from here on out.
Psychedelics Anonymous C3 Released
Psychedelics Anonymous has announced and launched Component 3 (C3), the latest companion release to their genesis collection. This is presumably the last release before their P2E mechanics release in the next month, allowing for the collection of $PSY, but also the burning of their different components. While staking and NFT burning are great for ponzinomics, I’m waiting for more details on how all the mechanics will play together and the narrative behind them. In my personal opinion the days of ponzinomic P2E games are coming to an end and users are looking for more than just staking for a coin that has 0 value or use. The project has a very tight-knit community that has remained strong through ups and downs, and the theme and tone set by the creators is very unique, so I’m keeping an eye out for more details on how all these components tie together.
Project I’m Watching: 10KTF
With the announcement of Otherside happening today, I’m watching all projects that have had rumors of being tied into this ecosystem. Besides Adidas, the biggest one of these is 10KTF, an incredibly unique project where you can mint digital clothing with your PFP on it. Over the past months rumors started swirling of a partnership with Yuga Labs and 10KTF. Characters and images from the Bored Ape ecosystem started showing up all over the 10KTF site. The floor price tripled over night, a clear alpha leak that we see all the time leading up to big announcements. I think an announcement is imminent, probably shortly after the Otherside land launch next Saturday. 10KTF is an incredibly intriguing concept I’ll be watching closely. Being able to mint clothing for your PFP’s/avatars in the metaverse could be really cool utility. I currently own 2 genesis 10KTF items plus the Gucci Grail, and will be looking for opportunities to potentially pick up 1 or 2 more on a dip.