NFT God Newsletter - The Daily Alpha 5/19/22

The Daily Alpha 5/19- Happy Thursday everyone! In this issue I want to share with you a new article I just published on a very interesting project that has seen some controversy, go over the news of the day, then talk a little about my personal investing strategy at the moment. Let's get into it:

The Truth About Crypto Packaged Goods: POP – NFT GOD. — nftgod.gives POP is a vision of building and self improvement from the mind of Chris Cantino. Massive amounts of hype led to confusion around the NFT project. Here's what you need to know about the project and what went down.

Volume down another 10% to 38 million

All risk-on assets across all financial markets continue to get pounded. Volume which is already hovering around yearly lows continues to drop. We are still seeing consistent price action over the past few weeks- small to mid cap projects fall and blue chips stay flat or slightly grow. It’s clear people are selling their lower conviction plays to cover other investments, but refuse to sell their top projects. I personally have been doing the same thing. I’ve sold all my low conviction plays but remain in my Mutant, RTFKT x Nike, and some art plays I like. I continue to wait for one of these macroeconomic headwinds to slow down before I consider making riskier plays.

Moonbirds pumping on rumors of a drop

Top 5 NFT project Moonbirds continues to disregard the bear market and pump in price. Rumors have been swirling for weeks around a new drop for bird holders, with price action starting to match the excitement. Might be an alpha leak, might just be a result of all the chatter. Social accounts for the project and Kevin Rose have dropped subtle hints with even some foreshadowing of trait specific NFT’s. With all the millions of dollars the project has raised a free NFT seems appropriate. Not sure if the value of the companion drop will match the 8 ETH increase of value the project has seen though. Consider me a seller on this news. I do like the idea though of unique, custom rewards based on the individual traits of your NFT’s. I don’t like the idea enough to spend $50,000 though.

Invisible Friends releases collab with KITH

After one of the most hyped mints in NFT history, art project Invisible Friends has gone pretty quiet for a while. Well the team has resurfaced with a new super limited release in collaboration with famous NYC clothing brand KITH. Unfortunately this is not any sort of reward for current holders, rather a completely separate auction for the general public. Prices are already reaching 10+ ETH. Rumors are by holding the token you’ll get exclusive benefits at the KITH store. Do I believe it’s worth $20,000 to maybe get some discounts at a clothing store? Probably not. The one interesting thing to note here is that clearly Invisible Friends is a desirable IP that other big brands want to collaborate with. While they’ve delivered no value back to holders, I do believe something interesting will eventually come from this IP. I’m looking to make an entrance at a potential dip.

My individual investment strategy at the moment

I just wanted to quickly go over my individual investment strategy at the moment. It’s a little off topic from NFT’s but I want to write about it anyway in case it inspires others or creates some interesting conversation.

The market overall has shifted a ton over the last month. A few months ago stocks were clearly not investable. Everything was at absurd all time highs with valuations that were indefensible. After some violent corrections the last few weeks, I believe for the first time in a while there are money making opportunities. With volatility expanding dramatically, I have started selling cash secured puts against companies I believe will be very safe long term. I’ve sold puts against AMD and a few other tech companies I believe are only in short term dips. Growth stocks have been getting battered for a while now. While I wouldn’t be surprised if they keep going down, I do believe they are now in a position where gains will eventually be realized.

In the short term I’m continuing to sell my low conviction NFT projects, shaving a decent amount of my ETH stack, and putting that money into less risky tech stocks that I think will be guaranteed profit in the medium to long term. I still hold a decent ETH bag that I’ll use when my high conviction plays dip, but I’m in belief gains can be found in several markets right now. Definitely let me know what you think and if you’re doing anything different.