#113 Memecoin Mania Continues
Memecoins to become an investable asset class?
GM - this is The Snapshot, edition #113.
This is what I’ve got for you this week:
This Week In NFT World - Memecoin mania continues
Sponsored Post - Lil Nouners Win 40 ETH Funding For Artist Program
Notable Sales - Lads, Shrooms, Skulls, XCOPY, Furie, Hobbs
Investor Focus - Down only? Insight from the NFT loan market
For sponsorship enquires, please DM me on Twitter.
Have a great day,
B
This Week In NFT World - Memecoin mania continues
Elon Musk says Tesla should integrate $DOGE at some point
Elon Musk at Giga Berlin today. “When will I be able to buy a Tesla with dogecoin?” “At some point I think we should enable that.”
From @dogeofficialceo
"The implications of this video cannot be understated. $DOGE back to $40b+ market cap by next week. Next giga rally in memecoins starts now"
From @Rewkang
On Thursday Memecoins rallied: DOGE +9%; PEPE +13%; WIF +37%; BONK +20%; MEME +12%
Memecoins keep going crazy.
Interesting to note: a lot of these new memecoins are being launched and traded on Solana. Definitely bullish for SOL.
Two other interesting observations on memecoins:
People are literally considering creating a vehicle for public equity markets for memes
Phantom wallet has started to present their memes in some graphics in different animal “buckets”
The narrative is emerging that memecoins are an investable asset class - across which you may want to spread yourself across dogs, cats, primates, and dragons. Enjoy!
Choose Rich @allnick appears on @stoolpresidente trading show with 3M followers
My thoughts: fantastic performance for the @niftyportal + @BoDoggosNFT crew who have been creating some of the best NFT market content for multiple years now.
The Bodoggos NFTs spiked from 4 SOL to more than 10 SOL during these episodes.
Small touches that won't make the headlines but worth noting:
- When Dave asks where Nick buys crypto, answer: the sponsor of your show is Kraken, so Kraken
- Bodoggos $10k donation to charity from which Dave rescued his dog.
You can get lost in the meme, but these things matter as much.
BTC ATHs - and then aggressive pullback
The BTC ETF inflows continued happily this week - including the 1st $1B day of inflows - which saw us hit $73k.
This morning however we did see $679M liquidated and the market pull back.
So where are we in the cycle?
My friends are back texting me about crypto. My friends are tuning into my live show every day. We are so back.
Sponsored Post - Lil Nouners Win 40 ETH Funding For Artist Program
Nouns DAO has passed a 40 ETH small grants program that seeks to fund artists to create CC0 artwork in any medium.
What are the details?
Artist Program is a small grants program that seeks to fund artists to create CC0 artwork in any medium.
Program directors are Lil Nouners Mike Good, Cardno, SQX, Index and Pipe.
The Airdropoooor Program was an artist outreach program that airdropped art for governance qualifications as well as a free mint for Lil Nouns Token Holders.
The execution of the proposal will:
Onboard 100 artists to create CC0 artwork
Showcase a large body of CC0 artwork on ArtistProgram.org
Mint artwork as a perpetual revenue source for Nouns (via OP, Base, Zora)
Eligible artists will receive .3 ETH per proposal, distributed through rounds on Prop.House. We’ll run 5 rounds with 6 ETH each, a total of 30 ETH distributed to ~100 artists.
We’ll attract artists with small grants, but educate them on CC0 and the public domain.
First Round will start on the 25th March at Prop.House
This is just another example of Lil Nouns DAO buildors doing great things!
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 - Lads, Shrooms, Skulls, XCOPY, Furie, Hobbs
Madlad, Skull - 845 SOL ($140,000)
BTC Shroom - 2.58 BTC ($189,000)
Sam Spratt, Skull of Luci - 65 ETH ($258,000)
XCOPY, Wen Airdrop - 151 ETH ($600,000)
Matt Furie, Peplicator Red Hoodie - 11.11 ETH ($44,000)
Tyler Hobbs, Fidenza - 142 ETH ($554,000)
Investor Focus - Down only? Insight from the NFT loan market
Pudgy Penguins are down 20% to 11.2 ETH in the last week - market is savage right now. I was in the lending market in the 8 - 12 ETH range before this significant round of markdowns, but I have stepped back now when the market is so volatile.
Loan book analysis incoming:
There are again a significant number of loans underwater - some of which are being refinanced and you have to think they will not find new lenders = more sell pressure when assets are liquidated.
There are almost 80 loans at 80% - 100% LTV (around 800 ETH/$3.2m value) which is considered a high LTV and not a super comfy loan to be in
The @metastreetxyz founder @0xZergs said he was willing to inject $1.3M into bad debt when the penguins experienced the first debt crisis a few days back - and he would not pull that liquidity for 6 months
"BTW - All loans done by me will NOT be called until September 2024, 6 months from now. @pudgypenguins APYs are starting to get crazy again, going to start cleaning them out. Again, I am only 1 person - soon we'll have a 100,000 man army ensuring a healthier market"
He made the point quite clearly though that one person rescuing a collection is not sustainable
"Yesterday I wiped out all the bad debt for @pudgypenguins, but I cant keep doing that... 1-2 folks bailing things out CANT scale. In reality, you need 100,000 supporters, or to turn illiquid loans into a (yield) TOKEN to share"
To that end, @metastreetxyz created Pudgy Lending Towers, a way for any person to access the Pudgy Lender market (not diving in on that here - but it's an interesting concept and worth pointing out because to understand the market you have to understand who the LPs are imo)
Pudgy Penguins Lending Towers Expanation
Other things to keep an eye on:
- ETH price so rampant right now that few collections are able to stand up to the rise in the underlying token
- Supply held by farmers crucial to watch for short/mid term price direction because they will simply dump with no remorse if they need to
Final reflection: people want to blame Blur/Blend (and there are some perverse incentives which are unhelpful), but noone is forcing people to buy with this much leverage which causes systemic risk
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
So good to catch up on all I missed in the last week with your Snapshot, B
That Andrew Kang tweet! LMAO!!!