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At the core of these WILD #NFT sales,
Whether $70M or $1 is one simple concept.
Supply & Demand.
Internalize this and everything makes sense.
1/ Let's Explore.
Whether $70M or $1 is one simple concept.
Supply & Demand.
Internalize this and everything makes sense.
1/ Let's Explore.
2/ (generally speaking)
More supply added = prices go down
More demand increase = prices go up
If supply decreases = prices go up
If demand decreases = prices go down
More supply added = prices go down
More demand increase = prices go up
If supply decreases = prices go up
If demand decreases = prices go down
3/ I often hear "Why would someone pay that much", "It's not worth that".
What something is "worth" in this space is MASSIVELY subjective.
NFTs are limited in supply.
So If the same person wants the same #NFT, they gotta battle it out.
What something is "worth" in this space is MASSIVELY subjective.
NFTs are limited in supply.
So If the same person wants the same #NFT, they gotta battle it out.
4/ The @beeple @ChristiesInc auction is a good, wild example.
$70M. Insane and had people gobsmacked.
but the reality is, 2 people wanted this 1 item. @MetaKovan & @justinsuntron
Both people had $$$.
So it was about WHO wanted it more.
$70M. Insane and had people gobsmacked.
but the reality is, 2 people wanted this 1 item. @MetaKovan & @justinsuntron
Both people had $$$.
So it was about WHO wanted it more.
5/ So whether it sold for $70M or $700M, it doesn't matter how much it was "worth" to anyone else.
What matters is who wanted it. Because there's only ONE of this.
And you can see Justin posted that he bid up to almost $70M. https://twitter.com/justinsuntron/status/1370226049208836100?lang=en
What matters is who wanted it. Because there's only ONE of this.
And you can see Justin posted that he bid up to almost $70M. https://twitter.com/justinsuntron/status/1370226049208836100?lang=en
6/ In less crazy examples,
@decentraland land is locked at 90,000 total parcels.
@larvalabs cryptopunks are locked at 10,000 punks.
#bitcoin
max supply is 21Million.
Etc.
Experienced #NFT investors keep a hawk eye on any signal to increase supply.
@decentraland land is locked at 90,000 total parcels.
@larvalabs cryptopunks are locked at 10,000 punks.
#bitcoin
max supply is 21Million.Etc.
Experienced #NFT investors keep a hawk eye on any signal to increase supply.
7/ In the case of Bitcoin and Cryptopunks this is impossible but if Decentraland or Sandbox or any project with utility were to increase land supply.
It may be good to attract users, but would crush prices.
As more supply = prices going down, (if demand can't keep up).
It may be good to attract users, but would crush prices.
As more supply = prices going down, (if demand can't keep up).
8/ If demand continues to increase on fixed supply NFT projects than so will prices.
It's just natural with supply and demand.
No matter what anyone thinks, whether Bitcoin, to them is worth $2, it doesn't matter.
What decides is the market.
It's just natural with supply and demand.
No matter what anyone thinks, whether Bitcoin, to them is worth $2, it doesn't matter.
What decides is the market.
8/ BUT if ANY of the above were to release more supply then prices would most likely drop.
That's why those projects that have a locked supply and a strong project narrative/use case starts to see crazy price sales after some time.
That's why those projects that have a locked supply and a strong project narrative/use case starts to see crazy price sales after some time.
9/ Bottom line, (For investors),
Keep an eye on projects that might add more supply.
Keep an eye on what demand could look like short term, mid term, long term.
Keep an eye on projects that might add more supply.
Keep an eye on what demand could look like short term, mid term, long term.
10/ MOST NFT projects will have insane demand short term,
As they release their limited x amount.
But if they can't keep up a good reason to hold mid-long term, demand will slow and most likely die.
As they release their limited x amount.
But if they can't keep up a good reason to hold mid-long term, demand will slow and most likely die.
11/ When I say 'NFT' here, I'm referring to many things not just Art.
Each having a different reason why demand increases, whether through collector value or desire to utilize the NFT, (to build in Decentraland for example).
Each having a different reason why demand increases, whether through collector value or desire to utilize the NFT, (to build in Decentraland for example).
11/ Here's a YouTube exploring this deeper,
It's not enough to just snag up an NFT that has x supply. It's also important to have an idea on demand based on time.
Short, mid and long term.
It's not enough to just snag up an NFT that has x supply. It's also important to have an idea on demand based on time.
Short, mid and long term.
