How the regular person makes passive income with NFTs ๐Ÿ˜ณ

May 24, 2022

What up family๐Ÿ‘จโ€๐Ÿ‘ฉโ€๐Ÿ‘งโ€๐Ÿ‘ฆ,

Seedphrase Daily here ๐Ÿ‘‹, where we try to develop little one-liners to keep things new, but this is me running out of one-linersโ€ฆ. (silent pause) NFTs and Crypto, am'I right?

Todayโ€™s estimated read time is about 4 minutes and 11 seconds. Stay tuned to where we talk about:

  • ๐Ÿ˜ช Celebrity endorsed NFT left investors crippled

  • ๐Ÿง NFT collection with no website or discord going viral

  • ๐Ÿ“ˆ Gamestop announces self-custodial Ethereum wallet

  • ๐Ÿš€ eBay drops their first NFTs

  • ๐Ÿ’ธ How the regular person makes passive income with NFTs

Celebrity endorsed NFT left investors crippled ๐Ÿ˜ช

Floyd Mayweather shilled an NFT project called Bored Bunny collection a while back, promising investors a 2.5x-10x if purchased. A fallen brother named Tyler jumped at this "opportunity" being a big fan of the boxer who calls himself "Money Man," he thought it was a good call to listen and buy.

So he did. And spent about $12k on this collection, and now it is worth almost nothing. He states that "this financially crippled me." In this case, it was a 'rug pull' that both Mayweather and the Bored Bunny collection refused to comment on.

Who's to blame? And how can I avoid potential scam projects?

It takes 2 to tango, meaning there's fault on both parts. Tyler because he blindly followed someone shilling an investment he knew nothing about. If he did a little research, he would have seen that it was an instant red flag because the founders were not even doxxed. Meaning the founders haven't revealed who they are to the public. Following that, the marketing was strictly based on hype and promoting a fake gains narrative. Of course, Floyd and the project founders are the main culprits. But regardless, there will always be scammers, and it's up to us to prevent those losses as much as possible. 

Are all NFT projects scams?

Of course, not all projects are scams, but we have seen a rise in fraudulent projects. OpenSea revealed that 80% of the NFTs minted through its free creation tool had been identified as fraudulent, earmarked as either spam or scams. The best way to ensure your NFT is legitimate is to look for the blue checkmark next to the artist's profile picture on OpenSea or other NFT marketplaces. Also, by DYOR! Doing your research will allow you to get a better sense of projects that seem iffy. Maybe platforms need to start charging a fee to filter scammers; what do you think would help?

NFT collection with no website or discord going viral ๐Ÿง

A collection called Goblintown.wtf has the Twitter NFT community going crazy. Keep in mind that they don't even have discord or a website yet, and the first 1,000 goblins were free to mint, having the user only cover gas fees.

There was 3,800ฮž ($7 million) in sales volume over the weekend, the most of any project during that time. The collection's floor peaked yesterday at 0.75ฮž ($1,500). Today the price is currently at 0.60ฮž ($1,200).

Why?

There is speculation that the project could be associated with Yuga Labs!

If this gets confirmed, how will it affect the collection?

Easy, if Yuga Labs confirms that they are the team behind this project, the volume will go stupid! If you didn't know already, Yuga Labs is the blockchain company behind the biggest projects in the space, such as BAYC, MAYC, CryptoPunks, etc.

A collaboration with the two could also affect the general direction of NFTs and potentially change the bear market we're facing currently! Do you think Yuga Labs is cooking up more than we believe in the back end?

Gamestop announces Self-custodial ethereum wallet ๐Ÿ“ˆ

OpenSea has announced the launch of a Web3 marketplace protocol for "safely and efficiently buying and selling NFTs."

GameStop officially unveiled a proprietary blockchain wallet that will feature non-fungible token functionality. The partnership with 'Immutable X' allows users "to interact with the Layer 2 protocol and expansive community in unique ways on Ethereum while gaining access to Venly's advanced infrastructure."

Venly's users will also be able to "trade their Immutable X-powered NFTs with zero gas fees, 100% carbon neutrality, and massive scalability on the Venly marketplace."

In short, the Gamestop x Immutable partnership will allow Gamestop to use a Layer 2 solution which will bring more users to the platform. Since then, they've come together to raise $100M for funding, of which they will build an NFT marketplace.

Ebay drops their first NFTs ๐Ÿคฃ

eBay is one of the biggest E-commerce platforms to this day and has released its debut collection of NFTs. They dropped a hockey-themed collection in partnership with Tezos, a polygon-based NFT platform, from prices of $10-$1500. And even though you could purchase it with fiat currency and the price was so low, leaving it more optimal for regular consumers, they only managed to sell 105 total NFTs.

What does this mean?

Web3 is an industry where followers or what celebrities are interested in, such as hype, doesn't always go well. It's more about building a community and bringing value. There are no shortcuts in this space!

How the regular person makes passive income with NFTs

OK. Time to give out some free game againโ€ฆ you guys should start paying us. jk. ๐Ÿ˜‰

Today we're talking about how anyone can make some passive cash flow through these digital pictures. The majority of NFTs in the market hold their value in their scarcity or their art. A great example of this is - CyberKongz Genesis. The NFT Market has grown as the major sector of the crypto industry in the year 2021. The total amount spent to purchase NFTs is about $12.6 billion compared to $162.4 Million at the start of the year. There are multiple ways by which you can generate passive income from NFTs, which are as follows.

  • Firstly, you can rent out the highly demanded NFTs to other users, creating a notable amount of income. For example, some trading games allow the players to take some NFT Cards on loan and boost their winning chances.

  • NFT Royalties. The underlying technology that powers NFTs allows them to impose royalty fees whenever their NFTs interchange in the secondary market. Besides this, the creators will receive passive income even after selling out their creations to other collectors.

  • A great benefit of the marriage among NFTs & DeFi (Decentralized Finance) Protocol is the possibility of NFT Staking. It is depositing your NFTs in a DeFi Protocol Smart Contract and generating a yield. There are several platforms to stake your NFT like Kira Network, NFTX, Splinterlands, etc.

Newseeds:

Time for seeeeeeds :

Thatโ€™s a wrap for today! Whoโ€™s fault do you think it is the scammer or the one falling for it? Let us know how you take accountability in your trading! And make sure to follow us on Instagram and Twitter if you haven't already.

See you tomorrow. โœŒ๏ธ ๐Ÿ’Ž

Meme of the Day

LMFAO 

Disclaimer

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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