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How to use NFTs as collateral to make extra profits
What up, family👨👩👧👦,
Seedphrase Daily here 👋. We break down NFTs and have another banger email full of sauce to lighten up your Tuesday.
Today’s estimated research time was 4 hours and 4 minutes, condensed into about 4 minutes and 44 seconds. Stay tuned to where we talk about:
🦍 Warren Buffet’s Granddaughter is bullish on crypto
👨🏫 Micro vs Macro effect on Cryptocurrencies
😂 Seller accidentally lists Bored Ape for 10Ξ and someone buys with a loan to flip for 71Ξ
🧵 How to get whitelisted on projects
Warren Buffet’s Granddaughter is bullish on crypto 🦍
One of the most successful investors, Warren Buffet, may not be bullish on crypto (maybe he bought at the top and is cranky now) - but his granddaughter, Nicole Buffet, is for sure!
Nicole began selling NFTs of her abstract paintings in early 2021. Her genesis collection, Spirit Coins, has over 47Ξ ($83k) volume on OpenSea, with the floor at 1.9Ξ ($3,342.) Not too shabby for one person.
She's also partnered with organizations such as the Open Earth Foundation, Hope for Haiti and Blankets of Hope, donating a percentage—or sometimes all—of her proceeds. She recognizes that NFTs are criticized for their environmental impact, among other things, but hopes her giving back through her NFT sales can counterbalance it.
Why did Nicole Buffet decide to get into NFTs?
Nicole Buffet's now in her mid-40s. She comes from a family of artists; of course, we all know the last name of the famous stock investor, but she was a painter and was never into them because she didn't get it. But now, coming to NFTs, she could correlate the two and grasp what an asset was. Her goal is to inform creators about a space that gives creators a chance to display their art and possibly bring them financial freedom!
When is her NFT collection released?
Nicole Buffet has an NFT collection called 'Crystaline' that will be released on June 3rd. It will be on sale on OpenSea in the Coins x The Gall3ry. Could this be a good buy? DYOR🧐
Micro vs Macro effect on Cryptocurrencies 👨🏫
We are no doubt in a bear market, which is affected by both the Micro & Macroeconomics that can cause a positive or negative effect in the short/long term. However, within the past two years, Bitcoin has increased by 229% compared to Gold, up 9%, Nasdaq up 19%, and the S&P 500 by 29%. Looking at the market in the short term, we often see Bitcoin down over 50% from all-time highs of $69,000 back in November. Let's not forget that a market correction is necessary for the next bull run!
Does supply and demand affect cryptocurrencies?
Supply and demand are microeconomic effects that can cause prices to be highly volatile. There is only 21 million Bitcoin created when it's all said and done, dwelling the supply and increasing demand, leading to the price going with it. There are currently 19M Bitcoins that are already owned, so once there are none left, the scarcity of the asset will be much higher, at least that's what we crypto maxis hope for.
What about regulations?
Regulations are a macro-economic effect that can cause major fear in the market. However, it can also bring tons of positive awareness towards cryptocurrencies with good news.
For example, in 2021, the Chinese government pressured mining farm operators to shut down and leave. Large mining operations began moving in late May. In June, Sechuan Province introduced measures that declared them illegal. Bitcoin's price dropped from about $53,000 to $32,000 by July, and China effectively banned cryptocurrency in September. Bitcoin's price recovered after miners relocated, but it wasn't until October that prices reached previous levels.
Is there a correlation between stocks & Crypto?
As Bitcoin morphed into an asset class, more interest was created by the financial world. Brokerages and institutions gained traction with regulators and offered investment opportunities like Bitcoin-linked ETFs and 401(k)s that allowed investors to place Bitcoin in them.
The cryptocurrency price correlation that has emerged appears not to be that Bitcoin is related to equities but instead that investors and traders are inadvertently creating a correlation. They are trading Bitcoin the only way they know how—the same way the asset classes they are most familiar with are traded.
So what can we get from all this?
If you're feeling emotional in times like these when it doesn't seem certain, it's good to build your foundation of what you know so you can be less emotional when you make decisions. Knowledge breeds confidence.
Seller accidentally lists Bored Ape for 10Ξ and someone buys with a loan to flip for 71Ξ 😂
This guy fat-fingered and sold his BAYC for 10Ξ ($20k) when the original floor price was 90Ξ. The listing only lasted for 30 seconds before it was swept up.
The best part about this is that the person who purchased it, used a flash loan! After he bought it, he flipped immediately for 74 WETH. The buyer was able to pocket 60Ξ ($108k) after fees. This is opportunity scouting at its finest! Sometimes you just have to look at a screen all day and make six figures.
How does it work?
Independent lenders increasingly use services like Arcade to connect with NFT owners who want to borrow money by using their NFTs as collateral. The idea is to give people who sink large amounts of money into NFTs, an increasingly popular investment, a way to get some cash without selling their digital assets.
Lenders are attracted to using services like Arcade by the potential of charging interest rates that far exceed traditional loans. In theory, they could also take ownership of an NFT used as collateral if a borrower defaults.
Where there’s a will there’s a way!
How to get whitelisted on projects 🧵
Lesson of the week!
Here is a thread we found useful by @ShyBloggerPR, How to get whitelist on NFT projects (summed up).
1. Conversing in the slower chats on Discord
Rather than chatting in the General Section, where it's crowded, talk in the slow sections that are not as active so more Mods can take note of you.
2. Fan Art
This is the easiest way to get WL. Try to be unique and do whatever you can with your skillset to get noticed.
3. Active Twitter raiding
Engage in all the socials. Follow up the mods on Twitter and try to stay active on their posts, and tag them on your artworks or memes to get their attention.
4. Matching Monikers
It's good practice to use similar names both on discord and on Twitter, so when raiding and participating, it will be easier for the mods to recognize and remember you.
5. Discord Games
Discord games are another popular way of getting Whitelisted. The two popular discord games communities use Lolbeans and Smash kart(available on the play store). Normally they choose either the top 3 winners or the top 1. So you can practice in your spare time and get better at it.
For the full thread! Show him some love and tell him Seedphrase sent you!
BIG WIN!
Last week we talked about goblintown.wtf at 0.6Ξ. The current floor is sitting at under 3Ξ($6K)!
One of our team members took the initiative with all the information given and is sitting around 2Ξ in profits!! Woot Woot, making him more profits than his salary..LOL.Stay tuned where we will talk more about goblintown’s interesting story! Do you think it's a good decision to sell or hold? NFA.
And If you’re looking to find early opportunities like this, tune in daily! We condense hours of research into 5 minutes for you to read and stay updated on the hottest trends in the market. Also, read our eBook “Flipping NFTs for 50-100X profits,” available for free if you refer one friend! (scroll down)
NewSeeds:
The shortest and sweetest part:
Prada is releasing 100 NFTs to join the Web3 space. Worth watching to see how it goes, is it a good buy? 🤔
South Korea betting that the Metaverse is going to be the next major industry. Once video games get more integrated we will see more traction. 👾🎮
That’s a wrap for today! Do you think we’re going to see more artists revealing their work through Web3? As the space develops it just seems like the most logical answer to empower and have control over yourself. Make sure to follow us on Instagram and Twitter where we post other cool things like this :D
See you tomorrow. ✌️ 💎
Meme of the Day
Sweeping the floor of this (sarcasm)
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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