#121 $1.25M Fantasy Top Takeover
SocialFi Summer Is Here
GM - this is The Snapshot, edition #121.
This is what I’ve got for you this week.
This Week In NFT World - $1.25M rev share payout on Fantasy Top
Notable Sales - Punks, Azuki, Fantasy Top Hero
Investor Focus - How I Make Portfolio Allocation Adjustments
For sponsorship enquires, please DM me on Twitter.
Have a great day,
B
This Week In NFT World - $1.25M rev share payout on Fantasy Top
SocialFi game Fantasy Top took headlines this week when they made millions of dollars in pack sales and fees from trading your favourite influencers/creators.
Fantasy Top Hero Trading Cards
The aim of the game is to collect creators, and then watch how they “perform” online as they tweet.
Collectors will now be grouped into leagues based on performance, and you can level up your points by collecting the best creators and collecting/levelling up your cards for better rarity.
Whilst the game has attracted huge mindshare and got people excited, there has been some trouble with botting: prominent creators have been “attacked” by bots, meaning their follower accounts have been increased rapidly, meaning their metrics are no longer trustworthy, which means the team had to downgrade their scores.
In addition, there has been some question marks over how to define “good performance” particularly for older larger accounts who have many stale followers. The team are working on some novel ways to address these core questions.
Nevertheless, the game and excitement continues - and they were also the recipient of 2M Blast Gold for the next 3 weeks (!)
After a brief decline in prices at the end of tournament 1, prices started to recover yesterday after the Blast Gold announcement.
Fantastic site to check prices here:
Pacmoon wins Blast Jackpot again with 1.3M Blast Gold allocated to holders
Another Beeple Everyday For Blast Community Coin
People were up in arms this week as the Blast Jackpot has been rewarding token holders in huge quantities compared with dApp users.
The argument was that people have used dApps and taken on large protocol risk for months - and now holders of a particular coin, just for holding, get dropped even more gold than the dApp users have accumulated. This is unfair, they say.
On some level I sympathise, but my bigger take away is this:
Do not dwell on what is fair - you can’t control the decisions of Blast team
“just holding assets” is not a thing - holding assets is SIGNIFICANT risk because they could go down very quickly. So there is risk in BOTH using protocols AND holding assets
Do both - you can’t get lazy and think there won’t be new ways for people to be successful. The rules of the game have changed, so adjust (taking into account your own portfolio and risk tolerance)
Van Eck ETF provider introduces Meme Coin Index
Huge investment manager Van Eck produced a memecoin index tracker this week.
" - The MEMECOIN index tracks the performance of the six largest meme coins, employing a modified market capitalization-weighted methodology, ensuring holdings are selected based on market value while capping each coin's weighting at 30% to diversify risk. - The index also includes four additional meme coins: Pepe $PEPE: 14.18% Dogwifhat $WIF: 13.29% Floki $FLOKI: 7.17% Bonk $BONK: 6.21%"
From @BSCNews
The institutions are finally coming to buy your cat/dag coins?!?!
In seriousness: there does appear to be a formation of a “memecoin asset class” of sorts.
I wonder whether we will see people invest in these type of baskets sooner rather than later.
ETH L2 Mode launches at $490M FDV to general market disappointment
It takes time for ideas to come to market. At one point in time, it would have been a great idea to fund Ethereum L2s, because there were not any.
Now that we have some, and some are starting to be successful, it is harder to see why we need so many more - and the market I believe is expressing that.
Mode opened at a $500M FDV this week - which is much less than the usual $1B+ FDV for a prominent L2.
"We have 100+ L2s now - 52 active L2s - 42 upcoming L2s - 11 L3s When I took econ 101 my biggest takeaway is that companies will continue hiring until the marginal net revenue (per employee) is <= 0 Likewise, until the default L2 valuations sink low enough, we are just going to get more L2s Mode just launched at 500M FDV so we are not at that point yet"
From @0xjaypeg
I can see L2 valuations continuing to disappoint moving forward.
Just like building a city, it will not matter that you have built the foundations any more; it will matter what economic activity you can attract.
Bold Leonidas sells out Blast Man on Blast raising 500 ETH ($1.5M) in minutes; refundable for 0.15 ETH
"Mint Price: 0.15E (refundable indefinitely after a 7 day lock, no funds sent to me, just potential benefit of yield) Supply: 3,333"
A cool new way artists can come to market has been enabled by the native yield on Blast.
Bold Leonidas raised $1.5M by selling out a refundable NFT which people bought for 0.15 ETH each. Buyers agree to lock their funds in the smart contract for 7 days - and in that time the artist earns on the native yield on the ETH.
After the 7 days, everyone can take out their money if they wish.
If they’d rather keep the funds in, the artist continues to earn just from the interest on the funds (0.04 ETH/ $120 per day at the current TVL)
Pretty cool innovation!
Notable Sales -
CryptoPunk, Hoodie - 109 ETH
CryptoPunk - 47.68 ETH
Azuki, Golden Umbrella - 11.95 ETH
Pacman Legendary, Fantasy Top - 18.9 ETH
Investor Focus - How I Make Portfolio Allocation Adjustments
one of the biggest unlocks for me has been accepting that at least in portion i am a capital allocator now
being accustomed to "professional" work it meant i was trained to think work was doing tasks for other people like producing docs or filling out a spreadsheet or taking calls or meetings
now i know that it is work to clear my schedule and look at the capital allocation and decide if its the right balance: like literally spend 30 minutes thinking and writing out alternative portfolio allocations to see if i like them better
i did something like this the other day
say you have 100 eth of eth exposure: some in ETH and some in NFTs
when you write it out it looks like this:
Present portfolio
20 ETH: restaking in X protocol
10 ETH: restaking in Y protocol
20 ETH: Blast
15 ETH: NFTs
20 ETH: NFT lending
15 ETH: just liquid
The thing is there have been changes since you last liked this portfolio
Now it emerges that Y protocol where you are restaking 10 ETH appears not to be as good as X protocol, and Blast seems to be a much better bet now which you may like to double down on
Where do you put the 10 ETH from Y protocol?
You can write the two scenarios out to test it.
Scenario 1 where you pile into X protocol for restaking
30 ETH: restaking in X protocol
20 ETH: Blast
15 ETH: NFTs
20 ETH: NFT lending
15 ETH: just liquid
Scenario 2 where you pile into X protocol into Blast
20 ETH: restaking in X protocol
30 ETH: Blast
15 ETH: NFTs
20 ETH: NFT lending
15 ETH: just liquid
What looks best?
Maybe it’s just me but seeing the scenarios visually really help me feel proportions of my investments (obviously this is a simplistic sketch but you can run the exercise multiple times in more nuanced ways)
Whilst the above example is just an example and definitely not indicative of my precise portfolio, here are some of the real questions I asked myself which determined what type of portfolios I tried to sketch out:
i) Which restaking protocol do I want to double down on / what % of my ETH stack do I want in restaking?
ii) What proportion of my ETH do I want in Blast now that my confidence level in it has increased?
iii) What proportion of my ETH do I want in NFTs? What is their expected yield/profit compared with other ways to put the ETH to work?
iv) How stable is the ETH NFT market for NFT lending? What are the returns? How does this compare with expected airdrops from restaking? How much time is it taking me to monitor those positions vs the more passive restaking airdrops?
v) What proportion of my ETH stack do I want truly liquid at all times?
vi) What proportion of my ETH stack am I comfortable exposed to protocol risk?
if i can spend some time answering those questions during an afternoon, i don't stress anymore if all i've achieved in that time is "rebalanced the portfolio"
hope that’s helpful
have a great day,
B
Disclaimer: The content covered in this newsletter is not to be considered as investment advice. It is for informational and educational purposes only.
I hold some of the NFTs mentioned in these newsletters