NFT God Newsletter - The Daily Alpha 7/5

The Daily Alpha 7/5- Happy Tuesday everyone! I've talked about this a couple times in different newsletters but if you're not taking advantage of the power of Twitter you're really doing yourself a disservice. Whether you're networking on a Twitter Space or building an audience by Tweeting some value, don't let these impactful tools go to waste. Let's get to the Alpha-

Latest Blog Post:

The Creator’s Economy is Coming and It’ll Change Web 3 Forever – NFT GOD. — nftgod.gives A billion dollar market is coming to Web 3 and NFT's. Here are a few ways to capitalize off these massive trends.

Today's News:

🔥ENS Domains Explode

🔥Otherside Stress Test Tomorrow

👀A Note on Utility

ENS BACK IN THE #1 SPOT

ENS domains are all the rage again as the 000.eth domain sold for a jaw dropping 300 ETH ($328,000). This spurred another bull run for the domains as ENS crept back up to the top of the Opensea charts. It seems every other week brings a new trend as emoji flags are also starting to pop in demand. Hysteria is starting to hit peak levels as full blown Twitter Spaces have launched just for people with 3 digit names. The thesis is that these are like license plates and the shorter the domain you have the more of a flex it is. Also numbers are more of a flex because they are international, unlike words.

I’m just not buying this trend at all. If I had any of these domains I’d be selling them now while the demand is high. While I understand the license plate analogy, I don’t believe 3 digit numbers are brandable and therefore very easy to remember. Yes, while words are not international because of language, they are much easier to remember than number combinations. I think this is just a trend at the moment because ENS domains have no notable utility. The same way NFT’s are primarily used as PFP’s because of lack of utility, 3 digit domains are the same story. I believe if and when ENS gets actual utility then actual words and branding will have a lot more value than numbers. I’m looking at this as only a short term trend and not a pump I’m looking to buy into.

OTHERSIDE STRESS TEST WEDNESDAY 7/6

In preparation for their tech demo in a couple weeks, Yuga is launching a stress test on Wednesday July 6th. Thousands of players will be added to the server minute by minute as they search for defects in the code. Anyone holding an Otherside NFT will be able to participate. Yuga also teased rewards for those that participate in the stress test or demo.

As I’ve been saying for months now, I’m not a buyer of Otherdeeds at this moment in time. With 100k more plots still to be released, I’m waiting for full dilution before I would consider buying in. It’s hard to imagine a scenario where supply doubles and the secondary market isn’t flooded with more deeds.

For a little background, Improbable.io is the team developing Otherside. They’ve released several projects before using this technology. To their credit the engine they’re building on seems to support functionality we haven’t seen in any mainstream game. Being able to support thousands of people in the same area while allowing for simultaneous voice communication between all of them would be revolutionary. I’ll be paying very close attention to how the demo goes as I plan on a possible entry into the project in the future.

A Note on Utility:

I wrote a thread earlier today on how anticipation of utility is more valuable at the moment than actual utility. It caused mixed reactions, about half the people saying it’s spot on and another half saying my take is going to single handedly destroy the space. I just wanted to clarify a couple things. 1) This perspective is completely from an investor’s point of view. I’m only commenting on what makes prices go up and down. That’s it. 2) Anticipation is only more valuable right now because innovation in the space hasn’t matched imagination quite yet. The same reason PFP’s are 95% of utility for NFT’s is the same reason hype is so important. The utility of NFT’s haven’t been fully realized yet, so in order to create a compelling narrative projects need to lean heavily into marketing and hype. I believe one day innovation will flip imagination and hype won’t be necessary anymore.