1 week of time in the NFT space is about equivalent to 1 year in any other asset class. Every single day hundreds of NFT projects mint and hundreds of NFT projects go down to that dreaded .06 ETH price. Just cheap enough where it’s not even worth the price of gas to sell. While every project is figuring out ways to move as fast as possible, Psychedelics Anonymous has slowly been building a massive, complex NFT ecosystem since launch in mid December. While most projects move way too fast and burn out, Psychedelics Anonymous has decided to slow down in order to speed up. Over the past several weeks I’ve been studying their ecosystem and community and would like to show you how smart, strategic moves might turn this project into the next big blue chip.
On December 21st, 2021 Psychedelics Anonymous Genesis collection minted. In NFT terms this is about 3 years ago. There was a solid amount of hype leading up to it but like most projects, the NFT community quickly moved on to try to find the next cash grab. While most speculators moved on, a core group of dedicated PA community members held strong and continued to build up a strong fan base. Project founder Lewis Gale aka Voltura (yes, a fully doxed founding team) has built this universe with advancing mental health treatments as it’s core tenant. Around this cause they have built an NFT ecosystem consisting of striking glitch artwork, a mysterious fiction, ancillary components and passes, and most importantly, an extremely dedicated holder base. In fact, the holder base currently stands at 6.1k holders for a supply of 9.6k. Thats a 63.5% unique user ratio. That’s an incredibly strong figure. For comparison sake, Bored Ape Yacht Club currently stands at 63%, CryptoPunks 34%, Azuki 54%, Cool Cats 52% and CloneX 43%. By far the best unique owner ratio when compared to any blue chip. As context, unique ownership is a very good indicator of price stability.
Now let’s talk about their strategy over the last few months since launch. Since then they have slowly released several collections. This includes a Component 1, Component 2, IRL Pass, Metaverse Pass, and a Printing Pass. Information on the utility of these NFT’s are sparse but we do know this: Component 1 will be stakable for a new utility token that will be launched soon. This strongly hints that a P2E experience is on the way, which if you’ve read my past research reports, you know I consider this the biggest theme of 2022. Component 2 will be burnable for a new NFT, similar to how the mutant serum works with BAYC. This brings value multiple ways to the holder. First, it makes the component burnable and deflationary, which should hypothetically increase it’s value over time. For those that have been tracking the mutant serums, you know this mechanic has led to prices going into the millions of dollars range. Second, it means you can also use this component to receive a second NFT which could be a derivative of your first NFT. Next, we know that the Metaverse and IRL passes will bring utility in the real world and also online. These events which have not been announced yet will most definitely require these NFT’s to access them. And lastly, the recently launched Printing Press. An NFT that will somehow factor into the PA game experience.
One thing to note here, each of these NFT’s have become available via claims to Psychedelics Anonymous holders. If you hold the entire set, you get free access to claim the next token released (as of publishing of this article). What this does is reward long term holders and naturally shrink the supply, driving up prices. A genius way to keep members in the community while also creating an element of FOMO for those outside the community. I think this single fact is the biggest reason why unique ownership counts are so great.
What I find incredibly unique about this project is this hasn’t been a rush to cash grab as quickly as possible. Since launch the founding team has slowly been building the ecosystem’s lore while rewarding holders with new, high value tokens. In fact both components are going for over an ETH at the moment. That means if you held the project early you’ve been given thousands of dollars of free value. If you pay attention to the Discord, Twitter feed, or Twitter Spaces you’ve been given a slow drip of information about the project. Not everything is revealed all at once. This has caused a large amount of hype and chatter in the PA community, further cementing long term holder status for many participants. In a world where project founders release as much as possible with Dutch auctions in order to cash grab as much as they can, this team has decided to take the approach of slowly building a highly engaging world in order to achieve a bigger vision. This is incredibly rare in the NFT space.
The point of this article is not to convince you to buy or sell this project. What I’m trying to do is help you realize there are other ways to approach NFT projects. The future of NFT’s aren’t dutch auctions starting at 1 eth for cartoon pictures of zoo animals with the promise of a full metaverse on the roadmap. The future of NFT’s and Web3 is a shared, engaging, long term experience owned by the community. This unique vision is what Psychedelics Anonymous has been executing on since the day they launched.
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