This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. PHEMEX is also celebrating their two year anniversary by sharing 2 BTC with 10 lucky winners to help them realize their dreams: https://anniversary.phemex.com/#dream-sectionNFTs made global headlines in 2021, but the majority of releases flopped. Some of the worst attempts of the year were orchestrated by celebrities with massive followings. One would assume that their NFT drops would be successful, based on the sheer number of super fans lining up to buy anything endorsed by their favorite person. Paradoxically, Rocks, Apes, and Punks made it to the top, while celebrity-backed projects with near-identical products sunk to the ocean floor.On the surface, it is nearly impossible to distinguish NFTs that flopped from those that have retained valuations in the millions. They're all visually similar. I’m willing to bet that if I tasked a complete stranger with sorting through a series of NFTs, placing them into baskets of "trash" and "treasure," their hit rate would be roughly 50%. The "art" is the same.I’ll get back to this point in a moment, but first let’s rewind a bit.By the way, you should try this with your friends who purport to be experts on wine - they will most likely fail to identify the more expensive from the cheap, but I digress....About 4 months ago, I wrote the following.“NFTs are a new medium of art. If you think of them as only a digital penguin, punk, or rock, you are failing to see the forest through the trees. Think back to the first cave paintings, Greek sculptures, pottery work, or self-portraits. These originals may not be the most aesthetically pleasing pieces of art to look at, but they tell a story of our humanity and creativity that is priceless. NFTs are the next step in the evolution of art. They are a new mode, medium, and style that carry with them a story of decentralization, 21st-century technology, meme culture, and blockchain bundled up into art. Not every day does humanity stumble upon a new expression of art. So, of course, the original NFTs are going to have value.”This explanation is still accurate, but does not go far enough to sufficiently explain why some NFTs boom and others bust - particularly those created by celebrities. How can the Paul brothers, Tekashi 6ix9ine, John Cena, John Wall, Grimes, Quentin Tarantino, Melania Trump, and so many other high-status individuals release their own NFTs that continue to predictably fail?What is it about BAYC, Punks, Ether Rocks, and other high-status NFT projects that differentiates them from their competitors? The answer lies neither in technology or appearance. All NFTs are minted on a blockchain and for the most part, they are all simple cartoons.Let’s reimagine our hypothetical situation from above and slightly alter the parameters. This time, let’s find aliens that are completely unfamiliar with fashion on planet Earth. We will present each test subject with an equal amount of high-end and low-end pieces of clothing. If we asked each alien to sort the clothing items intp piles of “trash” and “treasure,” would the aliens really be able to differentiate a Supreme tee, a pair of Jordans, and a Chanel coat from a Hanes tee, a pair of Kangaroos, and jacket from Burlington Coat Factory? The answer is... probably not. As much as we may like to believe our favorite brands are intrinsically different, they rarely are.This idea is closely related to our NFT conundrum.So what is the NFT x-factor? It’s a mix of scarcity, originality, history, community, and story. Owning an NFT fulfills the same human desire as owning a limited piece of clothing, art, or car. Humans love to own scarce objects, to have the feeling that they are the only ones in possession of something special. Whether by accident or tremendous foresight from their creators, select NFT projects have captured these unique human desires. Celebrities often lack the genuine interest and authenticity that the creators of popular NFTs have captured. Their cash grabs predictably flop. Originality, history, community, and story are not elements that are easily manufactured or replicated.I hope you find this extended thought piece useful. My goal is to make sense of this incredible NFT phenomenon. Please don’t read this as a defense of multi-million dollar images and go blindly purchase one!In This Issue:Celebrity NFT Cash GrabsBitcoin Thoughts And AnalysisAltcoinsLegacy MarketsThe Fed Is Sticking To Its GunsThe Wolf Of All Streets Podcast Ft. Eric WeissMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #408 - Celebrity NFT Cash Grabs
The Wolf Den #408 - Celebrity NFT Cash Grabs
The Wolf Den #408 - Celebrity NFT Cash Grabs
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. PHEMEX is also celebrating their two year anniversary by sharing 2 BTC with 10 lucky winners to help them realize their dreams: https://anniversary.phemex.com/#dream-sectionNFTs made global headlines in 2021, but the majority of releases flopped. Some of the worst attempts of the year were orchestrated by celebrities with massive followings. One would assume that their NFT drops would be successful, based on the sheer number of super fans lining up to buy anything endorsed by their favorite person. Paradoxically, Rocks, Apes, and Punks made it to the top, while celebrity-backed projects with near-identical products sunk to the ocean floor.On the surface, it is nearly impossible to distinguish NFTs that flopped from those that have retained valuations in the millions. They're all visually similar. I’m willing to bet that if I tasked a complete stranger with sorting through a series of NFTs, placing them into baskets of "trash" and "treasure," their hit rate would be roughly 50%. The "art" is the same.I’ll get back to this point in a moment, but first let’s rewind a bit.By the way, you should try this with your friends who purport to be experts on wine - they will most likely fail to identify the more expensive from the cheap, but I digress....About 4 months ago, I wrote the following.“NFTs are a new medium of art. If you think of them as only a digital penguin, punk, or rock, you are failing to see the forest through the trees. Think back to the first cave paintings, Greek sculptures, pottery work, or self-portraits. These originals may not be the most aesthetically pleasing pieces of art to look at, but they tell a story of our humanity and creativity that is priceless. NFTs are the next step in the evolution of art. They are a new mode, medium, and style that carry with them a story of decentralization, 21st-century technology, meme culture, and blockchain bundled up into art. Not every day does humanity stumble upon a new expression of art. So, of course, the original NFTs are going to have value.”This explanation is still accurate, but does not go far enough to sufficiently explain why some NFTs boom and others bust - particularly those created by celebrities. How can the Paul brothers, Tekashi 6ix9ine, John Cena, John Wall, Grimes, Quentin Tarantino, Melania Trump, and so many other high-status individuals release their own NFTs that continue to predictably fail?What is it about BAYC, Punks, Ether Rocks, and other high-status NFT projects that differentiates them from their competitors? The answer lies neither in technology or appearance. All NFTs are minted on a blockchain and for the most part, they are all simple cartoons.Let’s reimagine our hypothetical situation from above and slightly alter the parameters. This time, let’s find aliens that are completely unfamiliar with fashion on planet Earth. We will present each test subject with an equal amount of high-end and low-end pieces of clothing. If we asked each alien to sort the clothing items intp piles of “trash” and “treasure,” would the aliens really be able to differentiate a Supreme tee, a pair of Jordans, and a Chanel coat from a Hanes tee, a pair of Kangaroos, and jacket from Burlington Coat Factory? The answer is... probably not. As much as we may like to believe our favorite brands are intrinsically different, they rarely are.This idea is closely related to our NFT conundrum.So what is the NFT x-factor? It’s a mix of scarcity, originality, history, community, and story. Owning an NFT fulfills the same human desire as owning a limited piece of clothing, art, or car. Humans love to own scarce objects, to have the feeling that they are the only ones in possession of something special. Whether by accident or tremendous foresight from their creators, select NFT projects have captured these unique human desires. Celebrities often lack the genuine interest and authenticity that the creators of popular NFTs have captured. Their cash grabs predictably flop. Originality, history, community, and story are not elements that are easily manufactured or replicated.I hope you find this extended thought piece useful. My goal is to make sense of this incredible NFT phenomenon. Please don’t read this as a defense of multi-million dollar images and go blindly purchase one!In This Issue:Celebrity NFT Cash GrabsBitcoin Thoughts And AnalysisAltcoinsLegacy MarketsThe Fed Is Sticking To Its GunsThe Wolf Of All Streets Podcast Ft. Eric WeissMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO