Paper 41: Reddit NFTs Explosion
What Reddit Avatars proved and how you can benefit next
Gm team
Reddit Avatars took people by surprise a bit this week so I had to cover those. Whilst some may be focusing on the price, what you really need to think about is the bigger picture and how others will enter the space utilising similar strategies.
That’s what I write about today - with a little extra on how you can benefit too.
Have a great day,
B
Contents
This Week in Crypto
This Week in NFT World
Thought of the Week
Meme of the Week
This Week in Crypto
Crypto rallies UP - ETH rose almost 20% this week after ranging at around $1300 for months. Why?
Not clear to me - macro situation is still pretty dire. As evidenced by Amazon and Meta trading like shitcoins - both with violent moves down after their earnings reports.
Consensus seems to be that jobs market is still pretty sticky at the moment - we haven’t experienced the pain yet which we might need to experience to really turn things around. Subscribe for more optimistic outlooks moving forward !
$5b locked in Ethereum layer 2 ecosystems - This is a lot of money! Arbitrum and Optimism account for 80% of the locked value. Remember, as new chains and protocols decentralise they often give out tokens of value - this is why we run Airdrop Szn - to try to capture some of that value by being early participants.
World’s largest Bitcoin miner may file for bankruptcy - Core Scientific may file for bankruptcy if it fails to improve its financial circumstances. Shares of the company dropped by 77%. Mining Bitcoin is energy intensive, and there is speculation that many miners may struggle with the rising energy costs. Something to watch…
2. This Week in NFT World
Apple permits in-app NFT trading with a 30% COMMISSION - Not wanting to let go of their stranglehold on the app ecosystem, Apple are seeking to embrace NFTs so long as their in-app payment system is used - for which they receive 30% of the payment. How kind of them!
Reddit NFTs blow up - Web2 Redditors who hated NFTs now love NFTs. NFT Twitter decided to make Redditors rich by speculating heavily on these (highest sale of 12E+).
Blur Marketplace launches - ANOTHER marketplace launch with an airdrop - so far Blur have given ‘care packages’ to active NFT traders which at some point will determine how much of an airdrop you receive.
Odell Beckham Junior gets into RTFKT - Thanks to trades with Soby, OBJ swaps out of his Cryptopunks into the RTFKT ecosystem.
3. Thought of the Week
Reddit proved something very important this week which WILL be replicated by other people. Here I explain what they proved and the opportunity which exists in the future.
Reddit proved that all people will like NFTs if you just call them ‘Digital Collectables’ and don’t get too deep in the annoying tech.
When people access the internet they don’t care about IP addresses or servers or data storage or whatever. They want to click and access.
In web 3, the masses will not care about complex seedphrases, security, or decentralisation. They will care about getting their hands on a cool product and the opportunity to potentially make money from it.
cheap price
exclusive to loyal users
relevant/useful to users
customisable/personalisable so greater connection with user
Reddit has proven that a large community who exist online together WILL care about digital assets which are distributed in this manner - and WILL PAY for them.
As such, other companies WILL enter using a similar playbook.
I loved this genius thought experiment by Kaspar on how Spotify MIGHT look to do something similar.
The essence of the thread is here:
The best part of this is that it is WIN/WIN/WIN for companies, creators, and users.
So what can you do?
If you are a company, start thinking on how to create and curate for your online community.
If you are a creator, start to think of how you can reward your fans and followers via digital means.
If you are a user, start to think of who you want to support so you can join + participate in the relevant online communities.
For example, Starbucks will launch their Web 3 Odyssey Campaign soon - it will include NFTs. If you like Starbucks or want to speculate on the NFTs, it might be a good idea to use their existing app and rewards program.
Do this for the companies you like best and sit back and wait for your web3 rewards in future.
4. Meme of the Week
Congratulations Rishi. Like all the best tech companies, we finally have an Indian CEO.
Have a great day,
B
Please do leave me any questions or thoughts here - I respond to every one!
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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.