- 2036
- Posts
- 👀 One overlooked asset
GM everyone. This is 2036.
We’re back.
Bitcoin is off to a strong Q3.
After a -8.5% drawdown in June, I expect Bitcoin to have a substantially better July.
Every time Bitcoin’s been down in June…📉 it’s been up in July 📈 So, fingers crossed.
This month, Fed officials could also hint at rate cuts for September.
And, of course, we’re still waiting for our Biden bet to play out (if you’re new, you can read the details here and here).
Over the weekend, rumors emerged that Biden would step down.
The prediction markets are increasingly pricing in that Kamala, Whitmer, Newsom, or Obama could take his spot (and yes, there are coins for all of these).
In the meantime, however, our other coins are popping.
And while all eyes are on memecoins and BTC, there’s one crypto category that’s:
still largely ignored and misunderstood by most people
temporarily undervalued
… and that’s NFTs.
You see, most people think NFTs are dead.
‘Floor price go down only 📉🤮’.
A lot of us have PTSD from a 2021 summer filled with the once-expensive, now-worthless JPEGS.
I get it.
But here’s the kicker: NFTs are as alive as ever.
NFTs are doing $1.5 BILLION in monthly sales - on par with the previous peak in 2022.
So why is the price not up only? 🤔
Because the NFT landscape is more distributed than it was in the last cycle. You now have NFTs on every major chain and in all flavors: access passes, profile pictures, game items, etc.
Originally, NFTs were meant to be digital collectors’ items - like baseball cards, but on-chain.
But when NFTs took off in 2021, everyone raced to buy the latest $10K JPEG because the price would ‘go up.’
Today, that speculative activity has moved to memecoins.
As a result, the NFT market is increasingly moving toward its original promise.
In the same way that people own Andy Warhols because they retain value from their cultural impact as artifacts, they buy NFTs to own digital collectibles of crypto culture.
The Andy Warhols of crypto.
These are long-term bets that:
the industry will stay relevant and grow
that its original cultural movements will remain priceless
Much of this move into crypto trophy assets will happen later in the cycle.
NFTs will absorb some of the excess wealth being made in the space (just like luxury watches do).
So now, we have a decent window of opportunity to pick up long-term trophy assets before that extra wealth flows in.
These, by the way, are not investments to trade and in and out of. They’re not even to trade for the cycle. They’re to be held forever as a piece of crypto history, like an Andy Warhol.
Ok, so what’s on the shopping list?
The most obvious and undisputed NFT trophy assets today are:
Cryptopunks (∼$100,000)
Bored Ape Yacht Club (∼$35,000)
Beeple (∼$28,000)
Xcopy (∼$3,900 to $26,000)
I hesitate to make the list longer than that. But if I had to, I’d wager that Pudgy Penguins will eventually join that list, too.
Pudgy Penguins are doing a fantastic job getting their brand into the world of people outside of crypto. They have 1 million followers on Instagram. They’ve sold over 1 million toys in places like Target and Walmart.
Whereas Bored Apes are more edgy, Pudgy Penguins are designed for mass adoption.
(they can also be more affordable. Although a Pudgy Penguin trades for ∼$35,000, you can get a Lil Pudgy for just $3,200.)
From now on, I’ll regularly allocate a fixed percentage of my portfolio to long-term cultural assets that can be held forever.
I expect these will underperform memes in the short term.
But if I’m right, they’ll be priceless in a decade.
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.