I’m making a hard pivot in my strategy over the next 2-3 weeks. In the NFT game you need to stay nimble in order to be consistently profitable, and I believe my short term strategy is both safe and can possibly see huge returns. To quickly summarize before I get into the details, I’ll be selling almost all of my NFT holdings, getting as liquid as possible. I’ll still be holding my high conviction calls (BAYC, Essence/Fvck Avatar, Psychedelics Anonymous, Creepz), but any speculative plays I have will be liquidated. I’m preparing for a major event I predict will happen in the next 2-3 weeks. This new short term strategy I’m deploying comes from a lesson I learned in the recent past. Let’s get into this lesson then I’ll go over my exact plan.
On January 19th, 2022 two highly anticipated drops happened at the exact same time. Hape Prime and Full Send Metacard minted within an hour of eachother. Whether you’re a fan of them or not, these were two absolutely major drops that a large portion of the NFT space was trying to get in on. What transpired was very interesting. Almost every single project in the entire space outside Hape and Full Send tanked. Major players were selling off their inventory in order to get liquidity to buy into these 2 projects. Most projects from blue chips to small caps were cut down. CloneX floor dropped from 12 to 8, a 33% haircut. And then something interesting happened. Within 24 hours almost all prices recovered. Every major bluechip got back to the floor price they were previously at. If you managed to pounce while everyone was focused on Hape and Full Send, you managed to get in on a major fire sale.
This leads me to my current strategy. It is highly theorized that in the next 2-3 weeks Yuga Labs, owners of Bored Ape Yacht Club, will be dropping their land sale. In their leaked pitch deck they talked about launching their own metaverse, starting with a land sale in March/April. 100k lands to drop in April, and 100k more in August. In the pitch deck they estimated land prices to be at around 1 Eth. A 100,000 collection that will suck 100,000 Eth out of the market. This is significantly larger than Hape + Full Send times 10. This will be by far the largest liquidity destroying event in the history of NFT’s. Everyone in the space will be scrambling to liquidate as much as they can to buy these plots of land.
Based on the past and previous lessons I learned, I predict almost every project outside of this land sale will have a massive short term tank. I predict a very large percentage of traders in the NFT space will rush to sell as much as they can in order to buy up these plots of land. I believe this will present the greatest buying opportunity in NFT history. In preparation for this major event, I am liquidating everything outside of my high conviction plays. I’m getting as much ETH in my reserves as possible so that when this event happens I can buy up as many blue chip projects I can. While everyone is focusing on Yuga Labs land, I’ll be looking in the other direction buying up everything they’re selling. Anyone that has been staring at the Clone X’s, Doodles, and Azuki’s of the world will finally have their opportunity to get in at a discount.
This is the key to winning in NFT’s. When everyone is looking right, you need to look left. It is a zero sum game. For every winner, there has to be a loser. The average investor will lose. This means you have to think different than the average investor. While everyone will be talking about the BAYC land sale, I will be talking about major blue chips I’ve always wanted to get into. And just like previous times this kind of event has happened, I predict prices will quickly recover, presenting some excellent flipping opportunities. Just for the fun of it I’m predicting the land sale will happen on April 23rd, the exact 1 year anniversary of the original Bored Ape Yacht Club drop. I might be wrong but wouldn’t it be cool if I nail it?
Real quick, as I like to do with all my research papers, I like to challenge my assumptions and talk about risks. Over the last couple weeks volume in the NFT space has been pumping. Prices have been aggressively moving up. By selling now I am without a doubt running the risk of missing out on this pump. I feel so strongly about this thesis though that I’m willing to take the risk.
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