Thread
If you are still holding NFTs, you will lose a lot of money.
Everything is going to zero! Let's discuss how the future of NFTs will look like.
A co-thread with @huntersolaire_ 🧵👇
(1/14)
Everything is going to zero! Let's discuss how the future of NFTs will look like.
A co-thread with @huntersolaire_ 🧵👇
(1/14)
You probably have seen some tweets like this during the last week. Small breather, NFTs are not going to zero.
But there are many misconceptions, so let's talk about how this market will evolve in some years. This is just an educated guess, we can't predict the future.
(2/14)
But there are many misconceptions, so let's talk about how this market will evolve in some years. This is just an educated guess, we can't predict the future.
(2/14)
Remember when CloneX, Moonbirds and Doodles had a $80k+ floor and people still had FOMO?
They are now all under $5k and people are screaming they go to zero.
Why is this important? We have to zoom out a bit here to understand where we are going.
(3/14)
They are now all under $5k and people are screaming they go to zero.
Why is this important? We have to zoom out a bit here to understand where we are going.
(3/14)
NFTs are digital collectibles at it's core. Some have utility but the main value comes from the IP (+community).
Why did they even trade for that much?
The amount of serious projects was very limited. So all the money went into just a few projects.
(4/14)
Why did they even trade for that much?
The amount of serious projects was very limited. So all the money went into just a few projects.
(4/14)
We have many more good projects now and the number will only increase during the next bull market.
The liquidity will be spread between more projects. The piece of the pie will be much smaller for most projects, even if the overall pie gets bigger.
(5/14)
The liquidity will be spread between more projects. The piece of the pie will be much smaller for most projects, even if the overall pie gets bigger.
(5/14)
We also overestimated the value of projects being early.
Yes CryptoPunks and some other projects have provenance and this gives them value.
And being early in general can give value to a project, but being the first 5k collection that has pixelated pigs doesn't.
(6/14)
Yes CryptoPunks and some other projects have provenance and this gives them value.
And being early in general can give value to a project, but being the first 5k collection that has pixelated pigs doesn't.
(6/14)
People always loved collecting stuff and they also will in the future, NFTs aren't going anywhere.
But the market is currently dominated by expensive projects and that will most likely change in the future.
(7/14)
But the market is currently dominated by expensive projects and that will most likely change in the future.
(7/14)
Mass adoption will probably happen through cheaper NFTs.
Reddit is a good example for that.
It will also lead to L2 adoption for NFTs, paying $10 for a $50 NFT just doesn't make sense (Reddit chose Polygon as well).
(8/14)
Reddit is a good example for that.
It will also lead to L2 adoption for NFTs, paying $10 for a $50 NFT just doesn't make sense (Reddit chose Polygon as well).
(8/14)
But more users entering this space will also push expensive NFTs even if most people will be trading / collecting cheaper ones.
Cars, watches and pretty much all other collectibles have different price sectors and it will also be the case for NFTs.
(9/14)
Cars, watches and pretty much all other collectibles have different price sectors and it will also be the case for NFTs.
(9/14)
How will the next cycle look like?
The market will be smarter. We will see crazy floor prices again and probably even higher ones than last time.
But not every project will pump like crazy like last time and different projects will be the champions of the next cycle.
(10/14)
The market will be smarter. We will see crazy floor prices again and probably even higher ones than last time.
But not every project will pump like crazy like last time and different projects will be the champions of the next cycle.
(10/14)
Which projects will be the winner tho?
Having a web2 audience doesn't matter now, because those are not the people who just buy a jpeg for $10k.
But this will change and projects who can make a name for themselves outside of web3 will probably be on top.
(11/14)
Having a web2 audience doesn't matter now, because those are not the people who just buy a jpeg for $10k.
But this will change and projects who can make a name for themselves outside of web3 will probably be on top.
(11/14)
Many existing collections will struggle tho, because there will be new projects who haven't droppen a 2nd collection or a token yet.
And there will also be more web2 giants entering this space who probably learned from all the previous mistakes.
(12/14)
And there will also be more web2 giants entering this space who probably learned from all the previous mistakes.
(12/14)
tldr:
• NFTs are not going to zero
• we will se crazy price action again, but only for a few projects
• being an early project won't help much if team execution is bad
• new projects have an edge over old ones
• we'll see a shift towards cheaper NFTs + L2 adoption
(13/14)
• NFTs are not going to zero
• we will se crazy price action again, but only for a few projects
• being an early project won't help much if team execution is bad
• new projects have an edge over old ones
• we'll see a shift towards cheaper NFTs + L2 adoption
(13/14)
If you enjoyed this thread:
1. Like & Retweet the first tweet
2. Follow @huntersolaire_ & @moritz_web3
(14/14)
1. Like & Retweet the first tweet
2. Follow @huntersolaire_ & @moritz_web3
(14/14)
