How to buy 10x NFTs in 2022 (UPDATED guide)
So you’ve seen the news articles about How nfts have generated billions of Dollars this year and how some Individuals are making over 10 million Dollars on a single trade of a cartoon Ape and you say you know what i can do This so you start watching videos or Reading articles called how to make Money with nfts that were written in June or july and then when you think you Understand the risks and the best Practices you go out and you start Buying but here’s the problem with that The nft meta has changed and it’s always Changing and that article you read that Information from june that’s outdated And if you follow it to a t it’s gonna Do more harm than good so today we’re Gonna talk about the updated nft meta And if you don’t know what a meta is it Comes from gaming and it describes the Popular strategies that are dominant at A certain point in time so if we think About chess there might be an opening That all the pros start using because it Works very well and that becomes the Meta until everyone figures out the Right counters to this opening and then Another strategy comes in to become the New meta and the nft space in particular Evolves at an incredibly fast pace Almost like we’re doing a speed run of The geological time scale i highly Recommend watching this all the way
Until the end i’m gonna dive into all The latest trends that i’m seeing Specifically for nft collectibles and at The very least i think being aware of These trends will help us all get Wrecked a little bit less in 2022 which Sounds like a good new year’s resolution To me i also want to say thanks to Everyone who has subscribed to the Channel this year and if you haven’t yet This is a good time to jump in because i Do think that next year will be huge for Nfts and i have big plans for this Channel as well so i hope to see you There now before i get into the Strategies i want to answer a question That i get all the time which is am i Still early at this point and the answer To that is yes you are but that might Not mean what you think it’s true that We only have maybe a half a million Active collectors across all chains Combined which when you think about it It’s still a tiny group you know only About double what a music festival like Coachella gets in attendance and we know The reason why nfts are so small isn’t Because the market just doesn’t like Them as much as we thought they would It’s actually because there’s so much Friction preventing the average consumer From getting to the nfts you know the Onboarding is terrible but we also know That this is all going to change next
Year i’ve shown this chart before where I list many expected and rumored Catalysts in the coming months that Should onboard a ton of new people into Nfts so given all that i wouldn’t be Surprised if the active collector base Is you know 10x what it is right now 12 Months from now and even that could be You know very conservative if a platform Like instagram or tick tock goes full Blockchain but don’t do a victory lap Just because you think they’re gonna buy Off your lame nfts from the summer right We don’t actually know what this new Money is gonna prefer whether you know It’s gonna go towards crypto native Brands like cryptos or more recognizable Brands like adidas or maybe something Completely new that we haven’t even seen Yet so you might have to keep that Shameful hidden folder on openc for just A little longer okay so let’s get into The new meta and the good news is that Heading into 2022 we finally have some Data that we can use to guide us and Specifically what i’m going to look at Are the top 25 profile pic collections Ranked by all time volume and i’m going To use those to point out some trends That i’m seeing so here’s the list and These are the big boys right together These 25 collections generated over six Billion dollars in volume so we have Crypto punks at the top and boarded
Yacht club at number two so no surprise There and then clone x now at number Three which is pretty wild given that They came out only a few weeks ago now The first trend i want to point out is The importance that the market has Placed on utility and i think this is Going to be an even bigger theme next Year on this list of the top 25 Collections only two don’t have road Maps or offer any concrete utilities and That’s crypto punks which has its value Based on being the first profile pick Collection and cryptos which is based Around the art and being a vibe only Collection but the rest do focus on Utility and whether that’s air dropping Nfts to you or creating a token buying Metaverse land whatever it is they want To give you some added value beyond just Holding an nft and keep in mind that Throughout most of the year we still had No real idea of what kind of utility was Even possible but we’re now starting to Figure out that the possibilities are Pretty much endless and it’s going to be Very hard for an nft to get by and to Compete without offering something and If we look at those two collections that Haven’t been offering utility they Haven’t been doing too hot crypto punks Are down big from their peak in the Summer and were even temporarily flipped By boarded yacht club which is a
Collection that is absolutely killing it With their own utility and then cryptos Which are also down about 75 from their Peak they recently announced that they Were raising their royalties and Creating a grant system to allow other People to build products using their Brand so they’re recognizing that they Can’t just stand still now seeing all This does it mean it’s impossible for Another vibe only collection to rise to The top of course not right there’s Always going to be exceptions but it’s Pretty clear from the pattern here that The odds are stacked against them so the First lesson learned here is that Utility is becoming a must-have for nft Collectibles and if you absolutely need To buy a vibe only collection then at Least try to get one from an artist that Is on the rise so that you can benefit From their growth now you might say okay John carlo i buy into the whole utility Thing but what kinds of utility should We care about well my friend i just Happen to have a little powerpoint Illustration that can help us here so Here on the left you have nft version One utility and on the right you have Version two and let’s start with version One which are forms of utility that were Popular earlier this year but that we’re Already starting to phase out so first Off you have airdrop companion nfts with
No special purpose so this is when a Collection promises to give you a Companion nft down the road so let’s say You get a bird nft and they promise to Give you a bird house or something like That this mechanic was made popular by Larval labs and boarded yacht club but They’ve been repeated by nearly every Single collection at this point even Though in the majority of cases they end Up being worthless without some added Use case so some examples of use cases Would be the mutant apes which gave People you know a cheaper way of Accessing the boarded yacht club Ecosystem and then you have baby kongs Which gave you access to the wall street Kong’s discord for cyber cons in other Words all these companion nfts need to Do something or else you’re just Receiving a jpeg that nobody wants i Think by now half the people trading Nfts probably understand this but this Always captures newbies who get excited When they see all these added nfts in a Roadmap okay another form of utility That i think is losing appeal is buying Land in the metaverse so nearly every Random collection in the summer promised That they would buy a plot of land in Decentraland or sandbox and from what I’ve seen you know in truth people get Excited about this and they use it at The beginning but then excitement fades
Away pretty quickly now i know many of You will disagree with this one but i Just think that when we see the more Advanced forms of utility in the coming Years that having a plot of land that You don’t even really own right you’re Just using it sometimes that’s not Really as exciting and then finally you Have mechanics like buying up the floor Of the collection or redistributing Secondary royalties to holders this was Popular a couple of months ago but we’re Now seeing less and less of it because It turns out this isn’t a great way of Creating long-term value and it tells us That the creators don’t have a better Way of using that money okay now let’s Turn over to the version 2 utility which Are forms of utility that are clearly on The rise and that i think we’ll see more Of next year so first off we have d5 or Decentralized finance this involves Merging nfts with some mechanics from d5 Such as you know liquidity mining Issuing tokens that have some utility Using staking in a gamified way etcetera Early next year we have boarded yacht Club releasing the ape token which some People say could end up being a billion Dollar token and then even just a month Ago we had wolf game that showed some Fun gaming mechanics that you can build Around staking okay next off you have Web 3 integrations so this is really
Just business development right getting Partnerships with different applications And games and earlier this year no one Was really thinking about this because Web 3 was getting built out but i think Next year we’re going to see a lot more Of this one example again with board ape Yacht club is their recent partnership With animoka brands and obviously Partnering with adidas on their drop Okay next we’ll also have more dow Focused nft and for this one you can Think of constitution dial which just Last month try to buy a copy of the Constitution now obviously they failed But just the fact that they were able to Raise 47 million dollars in about a week Shows what kind of capital formation is Possible whenever someone asks me what Kind of utility they can add to their Nft project i always tell them just come Up with a mission statement and use the Funds raised to try to accomplish that Whether that’s buying some cool object Or physical land or even you know Setting up an nft media company i think We’re just at the beginning of what These dials are capable of and depending On how much you know regulatory clarity We get next year you might start seeing More dallas experiment with passing on Dividends or profits to the collectors From the products that they build and That’s going to be a more hard value
Capture compared to things like events And partnerships okay and then finally We have launchpad nfts what you have to Know here is that one of the biggest Problems for any nft project right now Is getting attention for their drop and So we’re seeing a lot of bundling Happening where some nfts act as launch Pads that give their collectors things Like white lists and giveaways from Other nft projects i actually spoke About this in my very first video on This channel called nfts will change Dramatically in 2022 and we’ve already Seen some examples of this with journey Crypto’s nft and 888 inner circle i Think this does become a bigger deal Next year and these collections can do Very well if their founders have good Connections okay so that’s utility but Now there’s another emerging trend that I want to point out and this one becomes Obvious if we look at the top 5 Collections from the last 30 days if we Look at this list we can see that big Brands are starting to make an entrance With clonex which is now a nike brand And adidas originals and you best Believe that many other brands are Watching this and they now have two Major success stories that they can Point to so it’s only logical that we’re Going to see a lot more of this and it’s Going to be a big range right you’re
Going to see toy companies like lego Media empires like disney even you know Olive garden has come out with nfts Representing one of 880 real olive Garden franchises in the united states Although this one’s not actually from Olive garden it’s simply a community of Olive garden fans which actually makes This way better look the point is that Whether you like it or not these mega Brands are coming and they have the Resources to make very compelling Products if they figure this web 3 thing Out now it’s not all going to be good Right it’s going to be a lot of cringe Attempts at trying to you know relate to Fellow kids it’s going to remind us of When every brand needed a rap song in The 90s i like the sprite A lot but the lesson here is that if you Can figure out which brands are going About it the right way you can make a Lot of money okay so now we can tie These first two lessons with a third Observation you see if we go back to Those top 25 rankings it becomes pretty Clear that having a strong creator or Founding team is almost like a Requirement for becoming a blue chip When i take into account the projects That had an unknown creator at the time Which i defined here as you know Creators that were either fully anon or Simply had new twitter accounts with no
Track record then that gets me to only Four collections i’m sure if i got that Wrong that someone will correct me in The comments but the point is that it Appears to be less than a quarter of the List and if we narrow that down to the Top 10 then there’s only one and that’s Boarded yacht club and maybe more Telling than that is if we look at the Hundreds and hundreds of nfts that come You know week in week out and completely Flop you know the bottom of the pile Those are by majority made by creators That have no track record or are Completely anon basically you’ll go to Their team section and in most cases it Won’t even link out to any social media Pages mostly because they’re all Probably made by the same guys now if You follow this channel then you’re Probably going uh okay john carlos once Again talking about founder like we get It bro but look i can’t help it that’s Like 80 of the analysis that i do at This point for a pro pick collection and I think you’re really going to hate me Next year because in my opinion this Factor gets even more important Especially if we hit a bear market and Let’s bring this all together to see why Next year as we said we’re going to be Seeing more and more utility come to These nfts and as the bar gets raised You’re not going to be able to compete
Unless you can keep up with that Innovation at the same time indie Projects are going to be competing with Huge brands that have unlimited Resources and marketing expertise so the Level of execution that you need to Compete in this new arena is just going To go up by a lot and the only ones that Are going to make it are the ones with Founders that can deliver on their Promises okay now i want to talk about One last point which is the art so let’s Take one final look at the top 25. now One thing you might notice is that if we Just focus on the top 10 we can see that Clone x me bits and mechaverse all Started off with 3d models then you have Cyber cons which did really well with Their cybercons vx collection which was 3d and we know that board apes are also Going to be releasing 3d models as well That would mean that 50 of the top 10 Collections would include 3d models and Some of the most hyped upcoming Collections like hate beast and wagmi Interfaces are also in 3d so clearly There’s a preference here outside of That it’s tough to draw any conclusions Because there’s a huge variety in the Artwork styles you have anime art miemar Colorful nfts cue nfts pixelated etc Basically i don’t think you need to Focus too much on the art style but Always ask yourself if you know the art
Can go viral remember we’re not looking For picassos we just want brands that Can grow and spread and that have wide Appeal with a large group of buyers and It is possible to have an entity blue Chip where the r is sort of meh but the Utility is carrying the entire team on Its back for example let’s take a look At the friends which i think we can all Agree isn’t the most let’s say Aesthetically pleasing collection so Let’s do a little summary of the new Meta we know that 3d models have Historically done pretty well and They’ll continue to do so but the Important thing really is buying art With wide appeal we know that utility is Becoming a bigger deal than ever before And that some forms of utility are on The rise while others are clearly being Phased out we also know that huge brands Are coming into the space in a big way And these are gonna steal a lot of Attention and liquidity from smaller Indie collections and because of that Increased competition nfts need to be on Point with their execution and as a Result you basically need a tier Creators handling the wheel all this Might sound somewhat obvious but it’s Very different than what we had in the Summer where you had you know a Non-creators vibe only collections were In vogue and 3dr was just something that
Was on the horizon now these are just The latest trends but if you want to Understand how i analyze an nft project From beginning to end i do recommend Watching this video here i think it Pairs well with what we spoke about Today alright guys that’s it for today Thanks for watching and i’ll catch you The next video