#108 $7.8B Dymension Airdrop Live And Rising
Why is $DYM airdrop so valuable?
GM - this is The Snapshot, edition #108.
This is what I’ve got for you this week:
This Week In NFT World - $7.8B Dymension Airdrop Live And Rising
Sponsored Post - Lil Nouns Hit ETH Denver with 3 ETH budget
Notable Sales - CryptoPunks, RSIC
Investor Focus - $1M Ape CryptoPunk loan & significance of NFT finance
For sponsorship enquires, please DM me on Twitter.
Have a great day,
B
This Week In NFT World - $7.8B Dymension Airdrop Live And Rising
$DYM ripped past $7 after going live at $5 two days ago with 80% of circulating supply staked.
"Friction to sell and very little circulating and a great narrative and a bunch of nice airdrops already lined up... they really are letting us run TIA back like 3 months later"
Thoughts from @great_espace
A very interesting consequence of this huge stimulus?
Pudgy Penguin NFT holders were rewarded almost $10,000 just for holding their Penguins.
The thesis for Penguins: sell the milk, buy more cows.
The idea is that Penguins will continue to produce more “milk” in the form of more airdrops moving forward.
Why are so many people staking their $DYM?
Because they think it will “do a TIA” - which has gone up only since its launch because it has received multiple airdrops for those who staked (including this $DYM drop.)
TIA
In the end this is a dangerous strategy. If the airdrops are not perceived to be valuable, the stakers are locked into a 21 day unbonding period ie they have to wait 21 days until they can take custody of their tokens again and can sell.
If the price starts going down, every one unstakes at the same time, and price will capitulate because they will all sell at the same time. Perhaps not just an if, but a when.
For now, up only it seems.
Wormhole airdrop confirmed for DeGods & y00ts holders
"Wormhole has like 100k users and is airdropping 17% of supply (11% up front). Think snapshot may have been just a few hours ago [from what @frankdegods] posted yesterday"
From @BlurCrypto
Quick takeaway: another huge protocol airdropping tokens to users AND reserving an allocation for a prominent NFT collection which has real and vocal members.
$RUG token goes live on Bitcoin with idea of making coins of BTC bullion
"Backed by Bitcoin. Each $RUG token is backed by a satoshi unit, a piece of bitcoin. You can think of this like: - a gold bullion vs - a gold coin Each are made of gold, but the gold coin has been melded and minted creating additional value."
Details from @ordinalrugs
I think this concept is really interesting. Worth checking out and will monitor how this concept plays out.
AI generated Solana collection, Zombie, runs from 0.2 SOL mint to 2 SOL
"it’s from the ai generated collection, modern zombie, by @wubbushi, which minted at 0.2 sol and did an immediate 15x to 3 sol, before settling at a cool 2 sol the WL was highly sought after, with 100s of threads trying to win a spot. holding a Rubber by @CryptoPopPunk or a Smile by @rainisto, gave allocations to mint - which went in seconds"
Details from @confugen
Solana art is actually doing really nicely right now. Inexpensive mints and quick 10Xs seem to be the norm at the moment. Worth keeping an eye on.
Rapper French Montana adopts blue Quantum Cat & shares VIP details for top cat holders
"Big reveal: My 'French Montana Signature 10000 - RACA Genesis Phone' airdrops! Top xxx cat buyers from @QuantumCatsXYZ on BTC in February will receive backstage VIP passes to my shows and one of my Signature Phones each."
From @FrencHMonTanA
Absolutely NOT expected this early into the bull market. But we have famous rapper French Montana getting involved in the BTC Ordinal ecosystem.
Sometimes famous people’s involvement can be an indicator of (local) tops. Be aware.
And a final crackpot thought from me on the digital agrarian revolution:
Sponsored Post - Lil Nouns Hit ETH Denver with 3 ETH budget
Lil Nouns DAO has voted for a 3 ETH proposal to give Lil Nouns a big presence at ETH Denver by sponsoring Pizza DAO’s event and incorporating mobile marketing, POAP and a Lil Pizza giveaway.
What will Lils be doing?
At PizzaDAO's event on February 28 which expects 500 attendees for the main event, Lils will be be incorporating a banner and POAP station at the event entrance and having a raffle prize with physical swag.
In addition, Lils have been working with CityDAO to secure a spot on a moving truck billboard that will be timed to go from the main Eth Denver event area to the PizzaDAO event with a "follow Lil Nouns to PizzaDAO" sign with art created by Borg - pretty fun!
This is just another example of Lil Nouns DAO governance in action, backing positive contributors to the DAO.
If you are curious about contributing to a cutting-edge DAO and getting paid to bring your ideas to life: check out our website.
Notable Sales - CryptoPunks, RSIC
CryptoPunk, Purple Cap - 82 ETH ($200,000)
CryptoPunk, Cap - 78.69 ETH ($191,000)
1 of 2 rare RSIC - 3.25 BTC ($139,000)
CryptoPunk, 65 ETH ($154,000)
Investor Focus - $1M Ape CryptoPunk loan & significance of NFT finance
This Ape JPEG receieved a $1M loan on the Gondi platform.
It is estimated to be worth around $3-4M, so the loan is approx. 25-30% LTV at 14% APR for 6 months, which means the famous investor owner, GMoney, will need to pay back $69,000 of interest on top of the $1M principal at the end of the 6 months (if he wants to get his precious ape back - if he does not, it is automatically transferred to the borrower.)
***
I came to a key realisation in the bear market: as bad as everything was in the NFT market, as bad as everything was in the stock market, as high as interest rates went:
*Certain* NFTs continued to trade for 5 and 6 figures - over and over and over again.
This was an indisputable fact.
Why?
1. Ownership of certain digital assets is valuable.
2. Ownership of certain digital assets should rise in value as we spend more time online and infrastructure is built to appreciate digital assets more.
3. Perfect provenance via blockchain gives collectors confidence in the assets they buy (in contrast with traditional art world where there can be arguments on authenticity/provenance).
4. Perfect transparency via blockchain gives collectors confidence on asset price history as they can see over and over again how the asset trades 24/7, 365 (in contrast with the traditional art world where there is a lack of clarity and private/incomplete data - or at least significant barriers to access that information).
5. The longer an asset continues to trade in a certain range and refuses to go beneath a certain price, the more confidence it gives collectors that the high price is justified.
But how do we know WHICH digital assets are blue-chip assets?
When the NFT market was less mature this question was debatable: you could speak about the art, the history, the community. You could speak about the price. Those aspects are still relevant.
But now we have the NFT lending market: the NFT lending market tells you every day how much of the full value of your NFT you could receive from a lender (Loan To Value), for how long (Duration) and at what interest rate (APR).
This represents a market confidence level in your asset.
The higher the LTV, the longer the timeframe, the lower the rate: the greater the market confidence level in your asset.
Some NFTs have routine good lending offers on them all the time (blue chip assets); some NFTs might have lower LTVs and/or higher APRs (reasonable assets); some NFTs may not have a lending market at all (uncertain status as investable asset)
Some examples with numbers:
- The @gmoneyNFT Ape CryptoPunk loan is estimated to be around 25 - 30% LTV
- Fairly comfortable Pudgy Penguins loans on Blend right now come in at around 50%-60% LTV (albeit at a high interest rate)
- 50-60% LTV has been considered quite comfortable across the board on Blend
- Many CryptoPunk loans on @gondixyz have recently been in the 30-50% LTV region with interest rates around 12-15%
Why digital assets beat IRL assets
The best traditional art can only get 30% LTV because of the significant costs of liquidation in the event of default:
- Storage
- Insurance
- Finder's fee for auction houses who will take a significant cut since you can't find a buyer yourself
How do these digital assets compare?
In the event of default, you can instantly and cheaply (for the cost of gas) sell your blue chip NFT (with perfect provenance and complete financial history) into a standing bid (which you knew would be there because of the transparency of the blockchain)
This is a complete paradigm shift.
And people are only just waking up to this superior quality of digital assets.
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
I haven't been keeping up with reading these (and S4mmy's), but I always appreciate the thoughtful work and due diligence you put into these, B!