NFT God Newsletter - The Daily Alpha 5/23/22
The Daily Alpha 5/23- Happy Monday everyone! Took the weekend off from writing content to unwind a bit and refresh myself. Feel great now and look forward to providing you guys some insight and opinions all week long. Let's get into it!
RTFKT Will Become The Largest NFT Ecosystem Ever (Including Yuga Labs) – NFT GOD. — nftgod.gives RTFKT and Nike has by the largest total addressable market in NFT's and it isn't even remotely close.
Moonbirds Oddities Released
The Moonbirds team has airdropped all 10,000 holders their first companion collection titled “Moonbirds Oddities”. The placeholder graphic appears to be owl poop. The release quickly resold for 4 ETH before settling into the low 3 ETH range. More interestingly, the Moonbirds price did not drop at all on this release, as most NFT collections do when they airdrop. In fact, the price has slowly risen. This is a very strong sign for the “diamond hand-ness” of the project.
A couple concerns of mine- this is now a companion collection to a companion collection. Proof is the main genesis collection, Moonbirds was a companion drop, and now Oddities are the companion to them. Proof will always get the most utility, then MB, then this new collection. I just don’t see how you get $8,000 of future utility with this one when you’re eating the scraps of two other collections. Here’s my other concern, we still don’t understand the vision for Moonbirds. If the strategy is to keep airdropping companion collections then release stickers and hats, the brand will eventually get diluted. Yuga is building NFT’s around a digital world, RTFKT is building a digital luxury goods ecosystem, and Proof is just dropping a bunch of bird themed things. Eventually too much brand dilution will happen and these new drops will lose a lot of value. They need to establish a vision soon.
Veecon a Rousing Success
The center of the NFT universe over the weekend was in Minnesota for Veecon. The biggest conference in NFT history, hosted by possibly the biggest name in NFT’s. Based on social media sentiment the event appears to have been a massive success. Speaking sessions were informative and the vibes were immaculate. It appears despite a huge bear market the NFT community is still very strong. This is a great sign for the longevity of the space that culture is still being built despite a lot of fear and uncertainty. All the attention turns to New York as NFT NYC is now a few weeks away. Expect massive releases and stealth drops for almost all blue chip brands before then. Now is the time to get into blue chips before alpha releases start happening.
Vitalik hints Ethereum Merge for August
Ethereum creator Vitalik Buterin has announced the long awaited “Merge” for Ethereum 2.0 will happen by August. This is the Proof of Stake update that will reduce gas fees and increase speeds for the entire network. Many investors have speculated this would be a huge boom for Ethereum and lead to a price pump for the entire ecosystem including NFT’s. I’m not fully confident this will lead to an NFT boom. I believe this reduction in fees could make it easier for flippers to enter and exit markets, making volatility higher and adding selling pressure now that skimming profits will be possible. I’m personally not using this as a factor in my investment thesis, and will remain more focused on macroeconomic factors to determine when to buy and sell ETH.