Actually, That’s Not Quite True…I Really Expect to Make $1.5 Million
Half a million dollars…
That’s where we left off yesterday. So, let’s pick up there—why it is that I think this piece of crypto art…
…might just be worth mid-six-figures soon.
First, if you missed the last episode of “How Jeff Pocketed $7,700 Over the Weekend,” let me quickly catch you up…
I recently bought non-fungible tokens (NFTs) for two projects. NFTs are cryptos that represent unique, one-off assets. That could be art. Could be a piece of music. Could be a plot of physical land. Whatever it is, it is by definition one-of-a-kind.
Over the weekend, two of the NFTs I own sold on an NFT-specific marketplace, for a combined profit of more than $7,700…10x my initial investment.
The one I wrote about in my previous dispatch earned me profits of just over $5,200 for a nine-day hold time. The one above—our story today—earned me about $2,500 for holding period of four days.
Now that we’re caught up…
That NFT above offers us an interesting, underlying story about where Wall Street-style investing is very likely headed.
It’s from a project known as Shadowy Super Coder, or SSC. (As with my SOLgods NFT I wrote about yesterday, I somehow randomly minted another one tied to the Netflix series, Squid Game.)
Thing is, this NFT is not part of a game or anything like that. And people like me who were buying these artworks, weren’t doing so for any artistic reason.
Instead, this NFT represents something fundamentally different, and it speaks to a whole new avenue for NFTs going forward.
See, SSC was created by a blockchain company known as GenesysGO. It’s an already profitable business that works behind the scenes deploying super-fast servers that help other blockchain companies manage the NFT-minting process.
Creating and distributing NFTs, a process known as “minting,” can be hellacious. I was part of another NFT minting over the weekend that was a disaster for that company, top to bottom.
GenesysGO has managed 60-plus mintings for some of the biggest names on Solana, one of the top crypto networks.
When it comes to smartphones, Apple is the big kahuna. When it comes to the back-office mechanics of an NFT minting, that’s GenesysGO.
The company could have legitimately hit up Wall Street or Silicon Valley and hoovered up a bunch of venture capital money. In fact, venture capitalists wanted to throw a bundle of dollars at GenesysGO because they realize this firm has enormous potential.
But GenesysGO management came up with a novel idea: Rather than going to venture capitalists for money, why not mint NFTs, allow the denizens of the cryptosphere to snap them up, and raise capital that way?
So, that’s exactly what the company did…it minted 10,000 NFTs—all similar to the one above.
And here’s the kicker: Each of the 10,000 NFTs that GenesysGO released (and that’s all that will ever exist) will award the owner 10,000 GenesysGO tokens when the company launches its new cryptocurrency in the coming months through what’s called an initial coin offering (ICO).
In very real terms, then, I played venture capitalist through an NFT purchase—no different than investment bankers and VC firms spending money to get a document promising them X number of shares of stock in an initial public offering on Wall Street.
I invested 2.5 Solana (just under $575 at the time) for that NFT, which gave me early investment access to a fantastic company with a very real, very profitable business. Do the math, and I paid $0.0575 for each of my 10,000 tokens.
This is where it gets interesting…
All told, the minting of the 10,000 Shadowy Super Coder NFTs values GenesysGO at roughly $12 million (the company will have a total of 200 million tokens trading after the ICO, so 200 million X $0.06, let’s call it, and you get a roughly $12 million market cap).
In the cryptosphere, that’s chump change.
It’s very, very—VERY—easy for me to see GenesysGO valued at $2 billion to $10 billion fairly quickly…meaning a single NFT like the one I sold is potentially worth…
Half a million dollars.
I know how that number looks and sounds. But I’m simply doing the math based on the successful business GenesysGO already operates and the fact that it’s the leader in its field.
I mean, even at $2 billion, GenesysGO would just barely crack the top 75 crypto coins.
At $10 billion, it’s top 25.
And, again, based on what GenesysGO brings to the party operationally, a top-25 ranking is by no means pie-in-the-sky—particularly for a coin that has a relatively small 200-million-token supply (that puts it in rarefied company with the likes of Binance Coin, PancakeSwap, and Avalanche—all huge names in crypto).
So, the obvious question: Why would I sell my NFT if it’s potentially worth upwards of half-a-million?
I bought four.
Each cost me 2.5 Solana, as I mentioned, so just under $2,400 in total.
The one above that I sold fetched $2,550, more than 4x my initial investment after a holding period of just four days.
After fees, I basically have my other three SSC NFTs for free.
Which is the way I like to play this NFT game early on: Buy multiple NFTs of the same project (if possible) and sell one when it rises to cover your initial costs. Then you’re playing on house money.
If my $500K dream goes poof—well, I lose nothing. (Well, technically I supposed it’s actually a $1.5 million dream since I own three of the NFTs.)
Those other three will remain in my wallet. Along with the GenesysGO tokens I’ll receive, the NFTs will also spin off a piece of NFT art every month for at least the next year. That was a surprise sweetener announced just before the minting.
But the 30,000 GenesysGO tokens coming my way when the ICO happens is precisely why I—and most of the original buyers—bought into this project. I see where GenesysGO is likely headed, and I want to be a part of that.
As usual, remember that this is not investment advice. SSC NFTs are selling for north of $4,000, and there is always the risk that the ICO never happens for whatever reason. I’m OK with that because I’ve already recouped my investment, and I can tolerate the risks inherent in crypto.
So much is happening in this space now that I feel like I’m getting a second chance to be part of the internet revolution—like buying 100 shares of Amazon back in the late ’90s when the stock was trading below $5.
Amazon is about $3,500 today, meaning those 100 shares are worth $350,000.
I’m convinced that SSC and other NFTs will lead me down a similar path, only magnitudes faster.