Primer: Gmoney is a growing voice in the NFT space. Moving from TradFi to NFTs, he brings with him a wealth of experience in the investing space. Learn from him as he discusses the maturity of the NFT market, the types of valuation metrics that he uses, as well as his investment strategy in the space.
Origins
From TradFi to NFT
Entered Crypto during the ICO Boom
Viewed crypto as an analog to the Dotcom Bubble
"The problem was that the American public wasn't ready for it [tech industry] just yet, in 1999. And then 10 years later, it's a multibillion dollar business and I was just drawing that analog where I'm like blockchain technology is gonna change the world, but it's still a couple years away." - Gmoney
What Amazed Him About The Crypto Space
Tinkered with Aave and realized that there's no analog to it in TradFi
Bought shards of a Gen 0 CryptoKitty on NIFTEX and subsequently bought everyone else out. Posted the asset as a collateral for a loan and was amazed by it
"With Aave and Compound you could get a collateralized loan with no KYC in less than five minutes. And that literally blew my mind." - Gmoney
Realized that the younger generation views digital assets positively (e.g. character skins in games), which bodes well for NFT adoption
Maturity of NFT Market
Still in the early stages. People are still figuring out what to do with NFTs
Innovation will continue with increasing use cases
Currently in the beginning/mid stage of a bubble
NFTs are correlated to not only crypto but risk assets in general
Central Bank money printing and people are trying to find places to park their money
Valuing NFTs
It depends on what the NFT is
He gravitated towards Cryptopunks as it is tough to value
Punks are owned by OGs in the space and are a status symbol
When used as an avatar, people recognize them
"So like one of the coolest ones was like punks, right, like the most OG guys have them. The most knowledgeable guys have them, the most successful guys and NFTs have them. So I was like, oh, it's like a status symbol, right? It's like wearing a Rolex watch, driving a Lamborghini, but it's digital, right?" - Gmoney
NFTs could be valued based on fundamental values (such as yields) as well as the status they confer
His Investment Strategy
Summer Trades
Long-term Investments
This allows him to be versatile
What he looks for in an investment:
Is this special?
Is this a cash grab?
What are the funds going to be used for?
Is it sustainable?
Too many celebrities are coming in to cash in on their fame
Keeping Up With Crypto Developments
His involvement in public markets —> advantage in understanding market psychology
Dominant Players In The NFT Markets
Shift from hobbyist creators —> Quants
Increased focus on quantitative data as the market develops further (e.g. NBA Topshot)
Thoughts On The NFT Hype
Receiving plenty of phone calls from people wanting to learn about or invest in NFTs
Investors/collectors have to have increased caution
Bullish on the Christie's Auction, expecting a record-breaking sale of the first digital NFT to be auctioned that's accepting Ether as payment
Most Controversial Take
"We're going to be in a massive bubble. If we're not there yet, and that, you know, you can probably expect asset prices to go down like 90 to 99%. At some point, you know, in at the end of this cycle." - Gmoney
Most Excited On
Antique collectibles such as CryptoPunks and Autoglyphs
His Future Plans
Learn as much about NFTs and the ecosystem as he possibly can
Foresees that real-world assets would be on-chain in 5-10 years
Favourite NFT That He Owns
Twerky Pepe
Collaborated with a Twerky Pepe account on Twitter to use his ape
When he announced the drop, it sold out within 20 minutes
Changed the life of the person behind the Twerky Pepe account
"And he [Twerky Pepe creator] texted me and he was like, You changed my life. Like you don't understand, like, what this means to me. It's really like life-changing for me. And I was like, wow, like, you know, more than like, any of the money that I've made in the space. Like That was one of like, the best moments I think I've had in crypto." - Gmoney
If He Could Change One Thing...
Creators/celebrities/influencers are coming into the space and trying to make as much money as possible by taking advantage of their fans
He would rather see these individuals using their NFTs to build relationships with their fans/build up the ecosystem
NFT in 3 years
A more interactive metaverse
Brand Building and Twitter Growth
His ability to explain NFTs to people and convince them
Opened doors for him
All information presented above is for educational purposes only and should not be taken as investment advice. Summaries are prepared by The Reading Ape. While reasonable efforts are made to provide accurate content, any errors in interpreting and summarizing the source material are ours alone. We disclaim any liability associated with the use of our content.