I saw a lot of alarmist tweets about #Sorare cards prices going down in eth. So here is why cards prices are decorrelating from eth price and now stable in fiat and why I think it’s a good thing - a long thread 1/n
The crypto retail market is still narrow and the mass market purchasing power is in fiat. The best thing for the platform is to attract a lot of users. That is what could bring the value of the current levels of scarcity to the moon. 2/n
It means that instead of the cards prices being correlated to eth price (external to Sorare) it is correlated to the development of the platform and its capacity to attract more users and create more utility for the cards. Isn’t it healthier? 3/n
If eth goes up 3x do you really expect your cards to go up 3x in fiat value with the same, still small, user base? It would totally kill the platform, preventing even more than today new users to join because of the entry price. 4/n
Decorrelation goes both ways. I understand it can be frustrating to see eth price go up and your cards staying stable in fiat but wait until there is a correction in eth price and you’ll be very happy that your cards retain their fiat value. 5/n
If you want an exposure to eth because you think it’ll keep going up, just buy eth. Sorare is not like buying crypto. Same if you want a highly liquid asset: buy cryptos, not NFTs that are by nature less liquid. 6/n
About liquidity it’s not the prices being stable in fiat that are slowing down the secondary market, it’s the influx of new users slowing down. So what you really want is not fiat prices to take off just yet but you want Sorare to be in a position to get mass market adoption 7/n
So basically: prices in fiat (threshold rewards in fiat are a good idea imo), scalability (layer 2 solution to reduce gas costs and transaction time), evolution of the platform (new features, mobile app, more stability, etc.) 8/n
The short term play was to sell in February after the fundraising was announced and there was a bubble for a few weeks. Now it’s the long term play, the really interesting one, and get ready for take off🚀🚀🚀 9/n
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