NFT God Newsletter - The Daily Alpha 5/25/22
The Daily Alpha 5/25- Happy Wednesday everyone! One of the coolest parts of writing about different projects on Twitter is you naturally attract the different communities to your feed and they all have interesting and unique perspectives on the market. NFT volume might be low but the community is still clearly alive and kicking. Let's get into it:
JP Morgan prefers crypto to Real Estate
JP Morgan released a report today declaring cryptocurrency is their alternative asset of choice, over even real estate. JPM specifically said Bitcoin is currently undervalued by about 28% with a target price $38,000. If there was any doubt crypto and by extension NFT’s were here to stay then this should eliminate it. I think this should give you more reason to only target projects you think can survive a bear cycle, because the projects and coins that survive this will for sure come out stronger on the other side.
While I totally agree crypto and NFT’s are undervalued right now, and I am making a couple high conviction plays, as I mentioned a few times I think Crypto can easily go lower from here. The fed’s monetary policy controls all and they still plan on tightening up through the end of the year. At this point either DCA or have very long time horizons.
Degen Toonz keeps ripping
Degen Toonz continues to be one of the only projects finding success in this market. Last week I wrote about them after they broke 1 ETH for the first time, and now they’ve surpassed 2. Degen Toonz has done a really great job of building community through constant founder engagement through Discord and Twitter Spaces as well as story building on their feed. They’ve hinted at several mechanics including some sort of collab with Looney Tunes. This kind of creative storytelling is the blueprint you need to build a project that keeps engaged users even in a bear market.
AIMoonBirds has a wildly successful free mint launch
AIMoonBirds is a newly launched project that is half derivative half actual art. After hitting the market today through a free mint, AIMoonBirds has found and maintained incredibly high volume. In a bear market like this you need to get creative to find success. Between the free mint and very unique AI generated artwork, the Birds seem to have hit a note the market was looking for. What I find particularly interesting here is this proves the market isn’t completely dead. Buyers are clearly waiting on the sidelines picking and choosing their spots. I’m not a buyer of AIMoonBirds here, derivatives just don’t fall into my investment thesis, but I’m happy to see a project launch and quickly succeed in this environment. It shows enthusiasm still exists in the market and quality art will still get rewarded.
Project I’m Waiting: Azuki
That’s right, controversial blue chip project Azuki is one I’m keeping my eye on. After chatting with some holders and watching their Discord, it appears there is still general enthusiasm in The Garden. The treasury still holds hundreds of millions of dollars of ETH ready to be deployed to build out their IP in various ways. If a project can survive the kind of FUD Azuki withstood while still maintaining a 12+ ETH floor, there must be a dedicated core community. While Zagabond’s past projects can certainly be considered rugs, this one clearly isn’t. They’ve built out an executive team with connections across industries and VC’s. Their potential to be a powerhouse mainstream IP is still very very high. I’d consider making a move on a dip below 10 ETH.