Why selling your $200k NFT for $200 is a good idea

May 17, 2022

Welcome back family👨‍👩‍👧‍👦,

Seedphrase Daily here, where we update you on NFT news and give you cool topics to discuss with your friends at link ups. It’s hot today, so you’ll have alot to say when you go out 😉.

Today’s estimated read time is 4 minutes and 52 seconds

  • 🏃 Will Solana NFTs surpass ETH?

  • 🤫 Why selling your $200k NFT for $200 is a good idea 

  • 👕 Kith x Invisible Friends launch 

  • 📈 Venture Money increasing, bullish?

  • ⚔️Preparing for Solana Summer 

  • 👨‍🏫Weekly Lesson 

Will Solana NFTs surpass ETH?

Solana Summer! Presented by Seedphrase daily.

What's been happening, and what can we expect?

In short, 

  • We have seen a lot more activity on the Solona NFTs on the Opensea top 50 with projects, Okay Bears being ranked #1 in volume! (details below). 

  • Blue Chip NFTs are holding stronger during this bear market.

  • The Solana NFT community has been the most engaging on Social Platforms, trending on crypto Twitter and Youtube. 

  • With investors being low on liquidity, investing in Solana-based projects makes sense because they are cheaper and have lower gas fees.

  • Last week, Ethereum was down 16% and Solana down 26%. This could be the opportunity to stack up and have the ability to invest in Solana NFTs when the time comes. 

How did Okay Bears get so big?

Before we do that, we have to say that it was the first-ever Solana project to be ranked #1 in volume and sales on Opensea. 

Ok... 

  1. Many famous influencers such as Faze Banks and Alex Becker are shilling on their social media. 

  2. This project has a similar aesthetic as the BAYC, leading people to speculate that it could trade to the same extent in volume.

  3. The hype behind the project is causing the price to skyrocket. This is an example of Supply & Hype, which we will go over at the bottom of this email as a mini-lesson.

Comparing Solana and Ethereum volume: 

Tons of liquidity has entered the market, with Solana NFTs trading $95M in volume and Ethereum having $423M on Opensea! The gap is slowly closing. 

On May 11th, the Solana chain saw over 260,000 transactions. The floor price represents an all-time high of $14M. Keep up here 

What you have to know about the pros and cons

Pros: 😎

  • The proof of work and proof of stake help keep the gas fees low compared to Ethereum. 

  • Because it is still early, blue chip projects (such as BAYC and CryptoPunks) have the potential to be created.

  • You have the option to stake your Solana.

Cons: 😪

  • Because of where we are, it looks unattractive to new investors 

  • There aren't any auctions yet 

  • Fewer projects are verified, and a lot of them with no purpose. 

Magic Eden

If you didn't know, now you know. Magic Eden is a Solana-based NFT marketplace. And they are getting closer to matching Opensea for active daily traders for the first time. With only a 5,000 user difference between the platform, it is safe to say that Solana Summer is no longer just a meme.

If you want more information check these resources

Selling your $200k NFT for $200 is a good idea

A BAYC NFT worth over $200,000 was "mistakenly" 😉 sold for $200. We say it in the quotation marks because we don't actually think this was the case. I mean, why sell something for almost less than 100x of the value.

Our theory… TAX EVASION! 

As we all know, we must pay taxes on all of our assets, or else the government will shut us down. 

  • The transaction history on Opensea shows that the NFT was sold a few times for about 2Ξ a year ago. It also shows it's been transferred to five different wallets from when it was minted.

If we dig a little deeper 

  • The buyer's account was just created this month, and the offer on the NFT was accepted just a few minutes after being received.

Let us come to the question of, is this NFT being used to avoid taxes every year by being transferred to a different wallet address? Or was it a simple mistake? 

WE ARE NOT tax advisors, and we are in no way, shape, or form telling you to commit tax evasion… But, if you can find ways around it, then... Good for you; you're leveraging the information that you have! 

For legal reasons, the moral of the story is: to pay your taxes.

Venture Money increasing, bullish?

Even though we've seen a better market in Q1, it wasn't all that bad. It was the hottest time for crypto startups. With decentralized finance startups raising $2.1 billion in the first quarter, and NFT-focused startups $2.4 billion, both all-time highs. 

Venture Money is essential news for the community since it helps build the infrastructure on what the community will depend on. We think this is bullish news because this will compound into something more significant like anything invested heavily.

Preparing for Solana Summer

With Solana Summer approaching, here's how to prepare! 

Just like Etheruem-based projects, there are still scam projects that we must avoid!

So if you discover a new project, how can you know if it's legit or not? 

How to DYOR:

Projects websites

Projects will usually have a link to their website somewhere in their bio or community chats. First of all, make sure it is the correct website. And explore the landing page, learn what the team and community are about, and study the road map to form an opinion on where you think this project will go. Don't be shy. 

The team behind the project

Find out if it's a doxxed team or an anonymous team. Check for the previous work experiences of the other team members. Most times, they put it on their Twitter bios. All this information is public, so let's take advantage of it!

Social Media

When they were created, the amount of followers, does the amount of engagement on tweets reflect the number of followers? You want to see if the team has been building or just started their community and match it with the engagement. Take notes of the red flags!

Supply & Hype

In this space, Hype usually almost means demand, so you have to make sure that the supply for a project is reasonable for the number of people in their community. A project with 1k members on discord or Twitter releasing a 10k supply will likely not sell out.

Real recognize real

Projects that have launched successfully or already have a big community will partner with good upcoming projects and provide more value for their communities. So always watch out for the collaborations because they usually have the most credibility. 

Make sure you're asking yourselves these questions before you even think of buying a project. This will put you on top of a lot of people.

This is a little mini-lesson for you guys to take with you during the week.

What is Supply and Hype?

Also known as buying the rumour, selling the news, buying the Hype, selling the news. It's a term used for when a project is hyped in anticipation that good news is coming in the future. 

For example, the Hype behind Otherside made people very excited about the drop until it came out. Causing the price to rise and then finally taking a dip because people sold and took profits, creating less demand. 

NewSeeds:

Vechain foundation is offering $30,000 to help the Terra Luna developers. At least someone is throwing them a bone 🐶

Concepts announces NFT launch More industries are expanding into Web3 📈

That's all for today, folks. We hope you enjoyed today's newsletter. With everything you’ve learned today, do you think that Solana could pass Ethereum in the upcoming years? Make sure to follow us on Instagram and Twitter. And reply to this email with your thoughts. We'll be here. 

With that being said,  

See you soon. ✌️

Meme of the Day 

that one there was a violation

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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