GM Seedphrasers 👋 It’s NFT Thursday, and we’ve got a non-fungible talk with a degen case study.

📓 Today’s Agenda:

• 🔥 Hot Headlines

• 🔫 Crank that Soulja

• 🐂 Are The Bulls Back?

• 🐻 A Short Story

• 💣 NFT Drops to Watch

📉 Crypto & The Markets:

• Former 3AC founders officially launch OPNX Exchange - Read more

• Crypto could eliminate 97% of traditional remittance fees - Check it out

• Sentiment protocol hacked for $500k on Arbitrum - Read more

🖼️ NFTs:

• Papa Johns Enters Metaverse With Pizza NFTs - Check it out!

• Kodas are decoupling from their Otherside - See more!

• “I love my ape.” Many BAYC holders tweet out this line and a picture of their ape to band together - Check it out

• Doodles drop below a 3 ETH floor - Take a look

Everyone’s favorite rapper from 2007 is back. Soulja Boy released an NFT collection called “Soulja Boy 3D NFT” (a very creative name).

What happened? His 500-piece collection sold out for $19 per NFT.

Then Soulja Boy hosted a Twitter space to celebrate and it was a must watch! The memes were impeccable, and all our favorite influencers took part.

Only one problem…

OpenSea removed his collection and anyone that purchased the NFT is left holding the bag.

Lesson learned: Just because a “famous” celebrity shills his own NFT, doesn’t mean you have to buy it.

Only in Web3.

🌊 ARE THE BULLS BACK?

We spend a lot of time on crypto Twitter and we’ve been sensing a theme…euphoria! Now, we were a little skeptical at first, we need to know if the bull season is back on. So today, we’re breaking down the bull vs. the bear case for crypto.

We brought in two of the best for today’s newsletter. In one corner we have Blake the Bull. Blake will show us why this is officially the start of the next bull run using plenty of data.

In the other corner, we have Brandon the Bear. Brandon believes macro headwinds and regulation uncertainty are too strong to overcome.

Two enter, but who will win? Let’s get ready to rumble!

The Bulls are Back in Town

Market overview: It’s been over 5 months since FTX collapsed (thanks Samuel). Since then, $BTC is up 80% and $ETH is up 90%.

Think about that, the 3rd largest crypto exchange was completely fraudulent and we’re up 80% since we found out. Find me a more resilient market than crypto. #BuiltDifferent

Even $USDC is up 14% since it’s all-time lows! What’s more bullish than that?

Market Volume: Since November, crypto exchange volume has increased each month. An increase in volume means more people in crypto. More people in crypto means prices go up!

Okay okay, it’s not quite as simple as that but it’s positive to see exchanges taking on more volume. Especially pairing this with the price increases we’ve seen. This is a bullish sign that more people are buying crypto as opposed to selling it.

DeFi: The most important metric in DeFi is Total Value Locked (TVL). It tells us how much money is supplied to the market. The higher this number is, the better. Why? Because it shows how much confidence the market has in DeFi.

As of today, we have over $50B locked across all DeFi protocols which is up $12B since the lows we saw in January.

Fun fact: $12B is the total GDP of the entire country of the Bahamas.

NFTs: Return of the flippers! Let’s be honest, there’s nothing that attracts people to NFTs more than hearing how your friend made six figures on monkey pictures.

Over the past 8 days, NFT flippers have been positive. Compare that with 17 of the previous 18 days being negative. During the NFT bull run, NFT flippers were making 5k ETH in profits. This is where we start!

Plus, Nakamigos has lit the NFT world on fire. Since they minted 2 weeks ago, they’ve had over 20k ETH in volume ($38M). Even the commemorative NFT OpenSea Pro launched has over 2k ETH in volume in its first 24 hours!

Airdrops: Over the last 2 months, we’ve had two of the biggest airdrops with $BLUR and $ARB injecting $1.5B into the market. That’s free money that was put into the hands of crypto natives. Yet another bullish sign!

TLDR: How can we not be bullish after all of this?! Everything points to the market returning to a bull. Volume is up. Prices are up. Even NFT traders are making money. News will continue to spread and it will continue to attract more buyers. Thus starting bull cycle!

🐻 A SHORT STORY

Okay now, let’s just calm down. Just because prices are (slightly) up, doesn’t mean we have a full-on bull market. Let me refer you to

This is the price of Bitcoin overlaid on top of the Wall St. Cheat Sheet diagram. According to this, we still have a ways to go before we get to a real bull run. The macro is still looking bad, 3 major banks have failed and inflation is not under control.

It hasn’t even been a year since the bear market began. The 2018 bear market lasted well over 2 years and that was when the global economy was strong! There’s no way we can expect the market to change course just because we’re tired of the bear.

Let’s dive deeper…

New Money: This isn’t new money, it’s existing money cycling around. Two of the past three weeks have seen large outflows of crypto and there hasn’t been enough inflows to offset that. In order to have a bull run we need to see continued inflow from new buyers.

Regulation: There is still a lot of uncertainty around the classification of crypto. The SEC is investigating Coinbase and the CFTC is charging Binance.

They’re going after the biggest players. If Coinbase decides to challenge the SEC through the court systems it will take years to play out. The uncertainty that institutional investors fear isn’t going away anytime soon.

(check out the full list of regulations we put together in Monday’s newsletter)

NFTs: The most important metric for NFT success should NOT be volume or some random degen project going wild (*cough* Nakamigos cough). It should be unique buyers. And although we’ve seen a slight uptick, we’re still down since January and VERY down since early 2022!

The bull market will start when we’re bringing in new NFT buyers!

TLDR: Until the macro concerns and uncertainty with regulators resolve, it’s almost impossible to see a bull market return. There is still a small number of players in this market. In order to restart the bull market we need new liquidity!

The Seedphrase Take: There are two sides to every coin. We brought our two best analysts to break this down and they each presented a compelling argument.

💣 NFT DROPS

Here’s a short list of some up-and-coming projects to keep an eye on:

• Walt’s Vault

• Stradall Game

• The Llamas

🧠 Want To Advertise With Seedphrase?

😂 Meme of the day:

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.