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Crypto Investors are Making Millions from NFT, is NFT Hedge against Crypto Market by Kishor M
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Nov 6, 2023
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so I'll be talking about how crypto investors are making money from NFTs and is NFT a hedge
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in the current so-called bearish market that we are experiencing now uh just before I can start off a 10 second intro about myself I run our crypto vc DAO and we invest
0:23
in various blockchain NFT DeFi projects. We also have a sister company called Matt4NFTs
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where we partner with celebrities, influencers, those on fashion, art, property, as well as brands
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that are looking to NFT their products or services. Now let's come to NFTs
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So the word NFT is non-fungible tokens, right? So let's talk about fungible first
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and if you look at currency for example this uh five dollar bill right it's a physical uh five
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dollar bill if i give you my five dollars and in exchange you give me your five dollars it's it's
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the same or if you give me let's say five one dollar bill and if i give you one five dollar bill
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it's the same the value doesn't change right but if you look at the mona lisa painting
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this is very unique right it cannot be changed because there's only one mona lisa painting
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that's why it's called non-fungible now the similar is the case on the digital side so these
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are called physical fungible and the one below is called digital so bitcoin is actually fungible
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why because if i give you my bitcoin and you give me your bitcoin it actually basically is the same
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there's no difference however with this so-called nft art that you see over here okay if i give you
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my nft art and you give me yours it's it's completely different uh so is the case with
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properties right we could be living on the same uh level let's say on the same flow but you could
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be facing the city and i could be facing let's say the the ocean right so i have an ocean view
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but you have a city view but we could be in the same um same so-called building and you could be
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a two-bedroom and i also and i'm also a two-bedroom so that's called non-fungible right so it's unique
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uh nfts the use case of nfts are many i'll come to it in a minute but there are two important
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uh reasons why nft is has become very popular one is because of its ownership so ownership is what
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nft really proves that i am the owner of this particular so-called in this case my artwork over
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here right so that's the ownership and the second biggest reason why nfd has become very popular is
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because of royalty so some of the names which uh have really uh entered into nft space is coca-cola
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starbucks nike adidas right so the names are big names have entered the nfp space i going to play a video and i like this video of gary v where he explains really why businesses are going to need an NFT strategy So just kind of hear him Why do you need an NFT
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Why do you need to use this kind of technology in order to do what people are already doing
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for customers already? That was literally the question that people asked me about the internet
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Why would you need to buy wine on a computer? I can go to the store. When you do an NFT
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you can put things into the contract. So Lou's Pizza Shop can issue NFTs and that make a thousand
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tokens right the regular pizza pictures just give you a 10 discount the gold one gives you unlimited
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free pizza after six months that they've had enough pizza or they move can sell it on the
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blockchain lou gets a royalty on that transaction because you could put royalty contracts under
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these nfts he keeps making financials on the back end of the royalty so for every small business
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every personality, every intellectual property, the token is also a marketing collateral. The
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way everybody in business needs a social media account to be relevant in 2021 is the same way
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in 2025 everyone's going to need a NFT strategy. So that was very rightly put by Gary and he says
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every business will need an NFT strategy. Now if you look at NFTs, you know you have
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these are the categories like metaverse, game, utility, art, sports, collectible, and
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collectible has the or rather the most popular nfts which are getting sold
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uh you'll be surprised that kids as young as 12 years old they are creating nfts and they are
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making money out of it here's a 12 year old girl and her collection is called the long neck nft
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collection and and she is also being quite popular she's made around 1.6 million dollars from her NFT
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collections now for those of you who may not know how to draw you'll be surprised that you could
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actually sell your selfie your own selfie and make money so here's a student from Indonesia and he
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made his own nfts by selling his selfie as an nft and he fetched one million dollars
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this is irene from singapore and she rigged in 7.5 million dollars by selling her
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own nfts as a selfie so why nfts why has it become so popular that's because of the sheer
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um i would say gains that people have made for example here's a very popular uh nft collection
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called pudgy penguin and this was minted for around 60 and it's trading for around eight
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thousand dollars so the return is around 13 000 return this kind of returns uh you don't get to
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see in traditional investments like stocks and commodities even some of the crypto coins or
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or fungible coins, you don't get these kind of returns. The kind of returns that we're getting in non-fungible tokens
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So here's some other examples. Like for example, this particular NFT was minted for 0.03
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and the current flow price, 99. You can see the kind of gains
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from the mint price to the flow price. Here another one flipped BAYC mint price was 0 Flow price is 51 So that a 51 return So these kind of gains are just unseen of and unheard of in traditional investments
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And that's why NFTs become so popular. Anyone with as little as $50 can participate in an NFT
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So it's for, it's anybody can. You know, you don't need to have a lot of capital
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That's why it's attracting a lot of users. Now, on my screen right now, here's a leaderboard of all the top NFT, so-called, I would call them as whales
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So Pranksy, for example, you know, kind of money is made from NFTs
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That's like 1,573 ETH. That's the kind of profit. It shows exactly his revenue, how much he has spent, how much he has bought
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So these are all the top NFT buyers. The NFT ecosystem is just growing
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And nowadays you could actually see NFTs in art. You could see NFT in metaverse
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Like Decentraland, Sandbox. NFT in gaming, in sports. In domain names, marketplaces, infrastructure
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So the use case of NFT is just growing. And growing every single day
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now let's look at some of the numbers in the last I would say quarter and and maybe let's
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say from the beginning of this year so this is where in Jan you can see the monthly volume of
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nfts right so it's like 15 billion right and then from there you can see it's kind of going down so
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when you look at this you will think that oh actually the nft market is falling but that's
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true the reason being is this fall is because of the fall in the price of fungible tokens which is
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ethereum so what essentially has happened is if i am raising one eath for my nft collection
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it's still one eath but because the price has of eath has become one third so it was four thousand
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now it's 1000 so maybe maybe not even one third more than dropped by more than one third
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the volumes seem to have shrunk you'll be surprised to see that more and more venture
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funding has actually gone into nft startups this year and let me give you some examples like
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estonia-based nft board raises 26 million dollars from investors here are some top nft companies in
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in 2021. So we have Dappo Labs that raised 386 million and then SoRare 57, OpenC23
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Let's look at this year. Funding for blockchain records startup hits a record of 9.2 billion in
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the first three months of 2022. This is according to CV insights and if you look at the numbers 3.6
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was raised by blockchain focused startups Out of that 2 billion was for nfts that the interesting part so if you look at 2021 it was 3 in 2022 is 9 out of 9 2 are for nft startups
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and the two most valuable uh unicorns that came into the nfts was yuga labs and immutable
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Now, UGA Labs, as we all know, they own the Bored Indie God Club, the CryptoPunks, and the MiBits
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raising $450 million in funding at $4 billion valuation in this year, March 2022
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And Australia-based Immutable raised $200 billion at $2.5 billion valuation in March
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which was led by Tamasic, which is in Singapore. and if you look at as on today there are surprisingly 62 unicorns in the blockchain space
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with a valuation of at least 1 billion and hong kong based animoka brands is the most active
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investor in the first quarter of 2022 and they have been mostly investing in gaming nfts and
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metaverse in the second place is coinbase ventures and the third place is pantera capital
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so nft actually more and more investors are coming into this space if you look at the size of
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nft market it's going to grow from 3 billion which is currently to 13.6 billion by 2027
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that's a compounded growth of 35 percent so we're going to see a growth rate from 2022 to 2027
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and the major factors that are going to influence is of course the adoption
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more importantly nfts are going to be used in gaming more so and of course celebrities are
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going to be coming in and pushing this further now the demand for nfts was actually 770 000
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unique nft buyers joined in january so far in this year that's almost 2500 jump from
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30 000 which was reported last year so this all these numbers are telling us that the craze for
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nfts has just begun the volumes are down because the price of ethereum is down but i share with you
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this is VGMI. It's a website where you can go and check all the prices of cryptos, NFTs rather
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and you can see all the top NFTs, right? They're hardly down in the last 30 days
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They're hardly down, right? While Bitcoin and Ethereum and all the other coins are down by 50%
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60%, 70%, right? But NFTs are hardly down, right? And some of them are even up. For example, here
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NIO Tokyo R&Ds, they are up by 120%. Damien Hirst currency up by 73%
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So definitely, NFTs are here to stay. And the hype has just begun
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Or I would say the craze has just begun
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