Floor is Rising Ep 78: Reddit NFTs – 0xBoffin – Bull thesis
Primer: What made 0xBoffin publish his Reddit NFT Thesis? Why is he bullish on them? In this episode of the Floor is Rising Podcast, host Sabretooth invites him to share the underlying details of his thesis as well as his theses on other NFT projects.
Background
One of the writers of Page One, an NFT newsletter/community
Wrote the Reddit NFT thesis
Got into crypto in 2013. Mined Dogecoin and exchanged it for Steam games
Invested in some coins during the 2017 ICO mania
After DeFi summer, he stumbled upon Axie Infinity and went deep into it
Have been involved with NFTs ever since then
Sharing His Reddit NFT Thesis
Knew about the Reddit NFT sale early on
The first edition took months to sell out
The second edition took only a day for it to sell out
It was a massive increase in demand over a short period of time
Saw Reddit as a new ecosystem that can onboard a lot of people
Reddit was using blockchain technology in the backend seamlessly
When users customize their avatars with NFTs, it happens off-chain
Started buying massively and got noticed by a lot of people
Wanted to write a thesis to consolidate everything
Is This One Of His Highest Conviction Bets?
Percentage-wise, it is one of his largest bets
It’s easier to convert users than acquiring new ones
Reddit has integrated these NFTs in a manner that makes sense to people
Behavioural Economics
💡 Boffin has a Masters in Behavioural Economics
Economics has a huge problem because normal people do not behave like what those models predict
E.g. a passenger has 2 options:
Option A: No stops, but cost a fraction more
Option B: Has 10 stops, but cost slightly less
Economics would suggest people using Option B to maximize the money they have
However, it does not account for time value, etc. of how normal people would behave
Similarly, NFTs are an emotionally loaded term
Calling them digital collectibles make it relatable to people and avoids the negative perception associated with crypto
“We [Reddit] don't tell people that’s an NFT. We don't hide it, we just word it differently. And that makes all the difference.”
- 0xBoffin
Are The Reddit Collectible Avatars Going To Become Flex Items?
Avatars are digital collectibles
As more people get onboarded, the oldest collectibles will be worth the most
Personalization Aspect Of Reddit NFTs
Current problem with NFTs is that you are unable to change a particular trait of the NFT (e.g. Changing a Bored Ape with a suit to a t-shirt)
To do so, you have to buy another NFT
Reddit NFTs enable users to change particular traits of their NFTs
Is His Thesis Dependent On Reddit’s Continual Support Of The Avatars?
There’s a risk of that happening
Reddit has been adding layers of personalization over time
His Theses On Other Projects
Is long narrative technology — if something has a good narrative and they have interesting technology backing it, it’s probably a project worth investing in
One project that worked out for him was RTFKT:
Narrative: Relating to Hypebeast the brand, but for Web3
Technology: Innovative forging technique
Another successful project was Clone X
Bored Apes did not turn out well for him. He sold it too early
Cool Cats was supposed to have the narrative but it fizzled out
Pudgy Penguins turned out great, which he did not expect
Expected Chromie Squiggles to take off, but they never did
His Favourite NFT
His favourite NFTs are those that allow him to converse with the artist and learn more about their life, the process for doing what they are currently doing, etc.
His Clone X because that’s his biggest win to date
His Twitter profile picture which is a combination of Lone Wolf by Jaen and Damien Hirst’s Currency
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