Crypto Punks Crash or Correction
By Dr Sol Adoni
After Visa bought a Crypto Punk I wrote an article on how a common Crypto Punk could quickly hit $1 Million USD.
Within days the floor of a punk hit 148 ETH and most trades were in the $700k range.
Daily volume hit $125 Million.
Today the floor has corrected.
It is now 118 ETH
Recent transactions are all listed or low ball offers and volume the past 24 Hours has crashed 90% to only $12 million.
Since there’s only 10k Punks, this volume shows at the most 30 punks changed hands in one day.
If that happened everyday, the entire inventory of punks would have to change hands once.
While Punks are the big thing in NFT at this moment, it’s just a fraction of the overall market volume of NFT Art Tokens.
Remember, Beeple sold one NFT for $69 Million at Christie’s.
I’m involved in some NFT projects, they’re not volatile and the floor stay the same due to various reasons, the primary one being it’s real art done by an elite artist.
Punks are like Bitcoin, an early project in the NFT space, mentioned in a pivotal ETH NFT White Paper. But like Bitcoin, it’s junk art, like Bitcoin is junk crypto, it’s slow, expensive to use and has no utility.
ETH has utility.
So today’s news that a big dinosaur hedge fund manager sees no value in all crypto due to no utility, doesn’t understand the utility of Ethereum and defi and NFTs.
Crypto isn’t going anywhere, it’s over 2 Trillion in asset value.
Punks might fade or jump, it’s a highly desired nich token.
We tested some keywords today on Google ads.
We targeted the wealthiest zip codes in USA. Not one impression for crypto art or punks.
Then we tested all of USA. Punks was quickly the #1 term double the impressions of crypto art and nft art.
Much of the crypto art market is Asian countries, but the USA is a big segment.
So there’s interest but Google isn’t that important in driving sales. It’s Opensea, Discord and Twitter.
ETH has utility, gas fees is strangling the coin, it’s still slow and ETH 2.0 needs to be launched soon.
Long term bets for me.
fracti is the future crypto coin, it is ready to do 250k TPS that’s crypto 3.0 speed. Bitcoin is a toy, only 7 TPS, ETH 1.0 is slow 25 TPS.
ETH 2.0 claims 25k TPS speed, we’ll see.
Visa is 17k TPS.
Get Free fracti here
Best future NFT
Beeple is Solid.
A desirable 10k limited project has value, we saw commons trading around $700k each for a few days. The question now is how much value will a common maintain.
Sollog has decades of collectors buying his art, huge crypto funds bought out most of his 1/1 works. The more common works haven’t really found mass adoption yet, due to the high release values.
But they sell through his network of sites off chain, so owners are growing, in fact there’s a large backlog of minting of rare works that will sky rocket the numbers of owners.
Sollog’s health issues have created the backlog, but it will be resolved soon.
You won’t get a clear giage on Sollog NFTs due to who buys his rarest works. They have no desire to resell. He’s a historic figure to the groups accumulating his 1/1 and 1/10 works.
You might see movement soon in the 1/100 tier, and when the common tiers of 1k and 10k are minted and transferred to the wallets that bought them off chain, a vibrate secondary market in commons will appear. But, the rare tiers will likely only see asset swaps off chain between large funds.
To a degree Punks have known rarity mintings, but the Sollog tiers are clear.
He released 1/1 direct to funds.
He released most 1/10 to funds.
His 1/100 to his long term fans who took Sollog’s advice in 2010 to accumulate Bitcoin then under $5 a coin.
NFTs are new, the minting process isn’t fully resolved, there’s issues with image storage that could destroy lots of projects.
But NFTs are around 4 years old.
Ethereum is 5 years old.
Bitcoin is 12 years old.
We are just starting on this journey.