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Mark Cuban’s worst investment..
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Seedphrase Daily👋 your reliable Crypto/NFT friends coming to catch you up on the weekend spill.
Today’s estimated research time is 4 hours and 34 minutes condensed into a read time of 3 minutes. Stay tuned to where we talk about:
🤦 Mark Cuban worst investment yet
💸Justin Sun says he's willing to spend up to $5B to help crypto firms
🙊Why no one bought Chris Brown's NFT collection.
🤲The Saudis NFT project
📺 Tune in on Youtube
Moe & Parisa have been working hard behind the scenes covering some of the hottest things going on in web3 every week on Youtube and if you haven't got a chance to check them out, you should, this video they covered:
The monopoly FTX is becoming
Tai Lopez and the Radio Shack Strategy
Insights from a founder of an NFT Project
We know reading isn't the easiest thing to do while driving it's hard to concentrate on words. That's why we do Every week we talk about trending topics, our thoughts on the market, and potential opportunities, so tap in! Here’s a link to the YouTube Video😎 oh and we're giving away 1 ETH when we hit 1k subscribers so make sure you hit that big red button under the video 😁
🤦 Mark Cuban's worst investment yet
According to Forbes, Mark Cuban is one of the wealthiest people alive, worth around $4.7B. He owns the Dallas Mavericks and got famous from the show SharkTank, where he's known for investing in mission-driven businesses that he thinks will make him a profit.
Last October, he signed a 5-year agreement linking his NBA team, the Dallas Mavericks, to the crypto exchange Voyager. The partnership aimed to promote cryptocurrencies by making coins more accessible through educational and digital programs and seemed like a good move at the time.
Voyager promised Dallas fans a $100 reward to trade crypto on Voyager if they deposited $100 and just traded $10. The offer was so enticing they had to make a waiting list because of the amount of backup they had. People were excited about their first investments and trusted the billionaire who they thought knew what he was talking about.
We know how this ends. 😅
Fast forward a little bit. Voyager declares chapter 11 bankruptcy, and Dallas fans are outraged by the fact they lost their investment, claiming they only got into cryptocurrency after the partnership and are now blaming it on Mark Cuban. It reminds me of baby mama drama coming back to claim child support.
🤔Did you stay in Voyager?
If only they had been reading Seedphrase Daily, they would have known about the bankruptcy and taken the extra percussion to transfer their money somewhere safe.😁
👨🏫Learning from this
As investors, we must realize that rich people are just people. Mark Cuban couldn't have predicted that Voyager would collapse when Bitcoin was at $60K. I'm sure he would have partnered with another firm if he did.
It's important to note that when influencers announce projects or partnerships, it doesn't equal a buy signal; it equals a research signal. No matter their intention, it's up to you to ensure the project meets your standards while ensuring your money is safe over the time invested. That means doing your research and being able to change plans upon new information.
Example:
🙋♂️Is this a buy signal or a trap from whales?
Justin Sun, the founder of the Tron Network, says he's willing to spend up to $5B to help crypto firms from liquidating. 🤯
The Tron ($TRX) Network is a decentralized, open-source blockchain-based operating system with smart contract functionality and proof-of-stake principles as its consensus algorithm. Their DAO is currently sitting on reserves of $2.3B and engaging an investment bank to advise on potential deals.
Following Sam Bankman, "I think currently the de-leverage process is passed the worst time. So we just need to clean it up and move forward. I don't think [the] market will be super bullish, of course," he said. Reading this sounds bullish; the big guys want to help retail investors by saving the market but is it all talk?
🕵️♂️Conspiracy Time
What if they plan to keep people hodling and hoping they will leave their money in the exchanges (before they can go bankrupt to secure the most amount of money). Or add even more funds to withhold this critical support while thinking this is bullish for the market sentiment.
Everyone should know that exchanges only make money when traders are active. And there is much more activity when there is bullish market sentiment. Is this just a plan to make more money? We'll see how their actions speak in the next few months.
🧠Quick mental exercise:
Do your research and form an opinion on the Tron Network. Do you think it will be here in the next five years? It takes years to accumulate wealth, and people should look at the bigger picture rather than trying to find quick money. This should be anyone's mindset coming into crypto.
To help you, here are 5 things to look for in tokenomics:
Sustainability unrelated to the market demand - Many projects now promise things while the market is high and can't deliver when the demand lowers. Does the project have utility beyond just buying and selling?
Short-term and long-term benefits for holders - Do the holders get anything directly or indirectly from investing? Examples are token resharing, free airdrops and the percentage of revenue.
Backup mechanism to stabilize token - With the market's volatility, it's wise to allocate a portion of the profits into token buybacks in case things beyond their control affect the market. For example, both FTX and Binance have regular buyback mechanisms in place.
Scalable - tokens can be sent between people in large quantities and quickly leads to friction amongst users
Accepted - The more it's accepted by other ecosystems, people, and services, the more it has room to be shown to more consumers.
🙊Why no one bought Chris Brown's NFT collection.
Did you ever want to own a digital 3D render of Chris Breezy Brown wielding the power of Web3? If the answer is yes, then you're probably one of the 248 people who own his new Breezyverse Genesis Collection. 😂
Launched on July 1st, this was probably the least effort put into a project release we've ever seen. Chris Brown has 114M followers on Instagram, and only 248/10,000 NFTs were sold! That's a 0.00000211% conversion rate.
Here are the reasons it failed and goes into topic 1: not buying everything an influencer announces.
Previous history of shilling scam projects, costing fans money.
Bad market timing
Poor audience education on Web3
Not catering to the NFT space
Even if it's a bear market, they were each priced for .35Ξ
Even though they had some real-world utility like VIP concert tickets, meet and greets etc. It only shows how much the NFT community really cares about that.
Now with the current market sentiment, free mints have been the trend because they are much lower risk than regular mints.
On top of that, once you have a history of shilling terrible projects, gaining that trust back within the community is hard. 😪
It's currently sitting at 0.26Ξ floor price and 5.8Ξ trading volume. While the project has relatively no appeal for the average NFT trader looking to make a quick profit, it could be valuable to you if you're a fan of his music. 🎤
🌱NewSeeds
Revuto to sell lifetime Netflix and Spotify membership NFTs. Could NFT subscriptions be the future? 🤔
Elon musk's boring company is taking dogecoin. More adoption of cryptocurrency and steps in the right direction.🌎
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See you Tomorrow! ✌️
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None of this is financial advice. This newsletter is strictly educational and is not investment advice or solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research!
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