Bitcoin Miners Selling, Crypto Bill in US Senate & Bear Market NFT Outperformers
In This Issue
- I share my thoughts on the state of the market, Crypto Bill in US Senate, crypto scams, Illuvium land sale, Bitcoin miners selling and a new NFT FAQ Report.
- Sam has a report for you on bear market NFT outperformers.
Before we get started, we’ve got a surprise for you 👀
We are always striving to improve our service so you can get the most out of it. Complete this short survey (takes <1 min to complete) and, as a token of our gratitude, you will get free access for 7 days to Wealth Mastery Premium!
This means that you’ll have free access to:
- Deep Dive Altcoin report & The Trending Coin Report
- Rekt Capital Technical Analysis
- Token sales, Airdrops and DeFi Tutorial
- NFT News, Tips, and Updates
Lastly, you’ll have access to my personal portfolio + weekly updates!
Simply click here to complete the survey and claim your free trial!
What’s On My Mind by Lark
The State of the Market
Weak, sad, beaten, bloodied, boring, painful, and other depressing adjectives.
Every mini rally is met with a sharp and brutal drop.
Altcoins just keep bleeding.
Bitcoin dominance keeps rising.
These times in the markets absolutely tear up traders.
This kind of directionless chop is tough to trade.
Investors find fewer opportunities too.
But there are still opportunities out there.
NFT collections are still making money on new mints, albeit fewer than before.
Token sales can still make money, although most have been delayed.
Buying long term positions, cost averaging in is still a thing for those who still have money.
BUT, for the most part this is one of those times in the markets when it is ok to not really be doing much.
You can just chill.
The money is still flowing into the market. Nearly a billion in funding by Binance, Solana, and others was announced this week.
Institutional inflows continue into Bitcoin. A16Z raised a few billion a few weeks ago.
Crypto isn’t going anywhere, and sentiment can reverse real fast. But until it does expect things to remain rather slow.
An investor’s biggest task right now is just to survive this bear market, and if you can find some opportunities along the way to make a few bucks then all the better.
Crypto Bill In US Senate
A new huge piece of legislation has started making the rounds which is looking to regulate crypto in the USA.
This is the first draft. It may or may not pass. It may pass but not in its current form. Keep that in mind.
Here is the short and sticky of the bill’s key points.
- The CFTC will regulate many cryptos now, not the SEC. This is because many cryptos will be deemed as commodities.
- Transactions under $200 will be tax exempt opening the doors to retail adoption.
- Stablecoins will be regulated and must be 100% backed.
- Self custody wallets are protected.
- They don’t know what to do with defi and NFTs.
Crypto Scams
I saw this report that Australian crypto investors have already lost 80 million to crypto scams this year, and I thought it would be a good time to revisit some of the most common scams and how you can avoid them.
- Scammers prey on those with lesser technical knowledge than them. Crypto is complicated and often you will be approached by scammers who are “in the know” when it comes to mining, trading, claiming an airdrop, or fixing a transaction. These helpful guys only need your backup phrase and then all of your money is gone.
- Scammers create false time pressure. This deal will end in a few hours, you need to give me access now, there are only a few spots left. When greed or fear starts getting in the driver seat of our brains then someone offering us something that we need to do right now can seem logical. But please keep in mind that these false time constraints are BS, and are designed to disable your otherwise logical brain. Almost nothing is ever a rush. Take your time, question everything.
- Scammers are Faker McFakersons. They will pretend to be influencers, they will pretend to be celebrities, they will pretend to be support for whatever service you are having trouble with. Be super vigilant. Most people who DM you on Discord or Telegram or anywhere else are scammers. Sure, they seem friendly and say they will help solve your problems, and then all of your money is gone. Also, c’mon man, Elon Musk is not writing to you to ask how your investing is going. That is a scammer.
- Sites offering 8% a day, or to make $1,000 a day “Bitcoin mining”, or to trade forex for you, etc etc etc are all scams. Those numbers are fantasies. You will experience less stress by throwing your money out the window. Some of it might even blow back in your window. Meaning it would probably be more profitable than chasing such schemes.
- Never, and I mean never, give out your backup phrase online. Your money will disappear in a flash. Never click on suspicious links or files sent from someone you don’t know. Never send money to someone who approached you on social media.
- Be more paranoid. Like a lot more paranoid. There are entire criminal gangs working to take the money from your pockets and put it in their pockets. And they are EVERYWHERE!!!!!!
Remember, if it all seems too good to be true, then it is probably a scam.
Illuvium Land Sale
Illuvium has sold 72 million dollars worth of NFT based land for their Ethereum based RPG as reported HERE.
This is incredible.
The market has been super bearish recently and yet, here we see a huge NFT sale being pulled off.
This shows that while people are definitely much slower to take on risk right now, there is indeed a lot of money floating around looking for the right opportunities.
I remain bullish on Illuvium, and have been farming it since 2021.
Bitcoin Miners Selling
We have just gone through the second biggest miner selloff in over 2 years.
And miners this time, as opposed to how they usually operate, sold into weakness not strength.
Really a sign of the times when miners are basically taking what they can get for their Bitcoin instead of waiting for higher prices.
The wider macro scene is weighing heavily across all segments of the market.
NFT FAQ Report
We published an incredible resource on NFTs, answering many of the most commonly asked questions.
Check it out HERE.
Bear Market NFT Outperformers by Sam
With prices tumbling from around the beginning of this May, many observers predicted that NFTs would nuke.
But while it’s true that volume is down and a lot of NFTs lost value, there are some existing collections and new drops that have actually (up to now) thrived during these tough market conditions.
A distinguishing characteristic of NFTs is that it’s common for individual collections to move according to their own trends, so it’s more necessary to take projects on their own merits, rather than only talking about the market as a whole.
<h3 id="bear-market-nft-outperformers“>Bear Market NFT OutperformersGoblintown
This drop has been the breakout phenomenon of the bear market, and what could be more NFT-ish in its vibes than marking crypto’s descent into goblin town with a surprise collection of goblins, actually called Goblintown, that immediately becomes hugely successful?
The Goblintown drop had no apparent marketing, no Discord, no roadmap, was free to mint, and uses CC0 licensing (CC0 seems to be fast becoming a standard distinguishing NFTs from traditional media).
From a free mint on May 19th, the average sales price on OpenSea has soared to 7.6 ETH, correcting to around 6.4 ETH at the time of writing, hype has exploded, and a further side-development, McGoblin Burger, has launched.
What’s become clear is that this project is far from a “low effort pump and dump”.
It’s expertly executed, and looks like it’s heading somewhere with intent, prompting heady, unverified speculation that Yuga Labs (or perhaps Beeple, or both Yuga and Beeple) might be behind it, and there has been scrutiny of its distinctively weird smart contracts.
There are also an insane number of copycats and derivatives (it’s CC0, after all), and it’s brought about a general air of mass confusion in the NFT space, as no-one seems to have a clue what is going on in Goblintown.
Early BAYC vibes is a cliche, but in this case it makes sense, albeit in a cycle-fittingly goblin-esque way.
Degen Toonz
This project has carried a feeling of being special since it launched in February, but has really taken off further during the bear, briefly reaching a floor price of 3 ETH towards the end of May, having before then been trading healthily, but at an average sales price below 1 ETH.
Community might be an overused term in NFTs, but there are a few projects that actually have outstanding, dedicated communities, and Degen Toonz is among them.
The project is visually distinctive in its own right, but is unashamed about taking elements of the Bored Ape success story and recycling them for its own purposes.
Toonz holders can now go to the project’s GM/GN site and claim dynamite (one dynamite per NFT, and three regular dynamites can be converted into a mutant dynamite), and these assets will then have further utility.
Dynamite is also being traded on OpenSea.
If you’re planning to buy a Toonz NFT in order to claim dynamite, then make sure to first check whether or not the one you’re sizing up has already claimed.
You can do this by connecting your wallet to the GM/GN site, clicking on Verify claim, and entering the token ID.
Rektguy
A free mint, CC0, no roadmap (the website just says “lol” in the roadmap section), and some scratchy, flashing artwork, Rektguy is as degen as you could hope for to brighten up the bear.
It was created by the artists Alienqueen and OSF (a respected character in the NFT space with an interesting backstory, his real name is Ovie Faruq, he’s a former trader at Barclays, and he co-founded a well-known NFT community called Degenz).
The average sales price of a Rektguy on OpenSea has now dropped from a high of around 1 ETH towards the end of May, to around 0.55 ETH at the time of writing, but that’s still a substantial gain from the free mint, and this is a collection from established creators who are active and influential in the NFT art world.
The Uncanny Country Club
In this current phase of the market cycle it’s more difficult for new collections to mint out, particularly if they’re not operating with a lot of backing and organized hype.
Within this context, The Uncanny Country Club sold out a 5,000 piece collection, and then generated a buzz at the end of May, running up average sales prices to almost 0.3 ETH.
The floor price has now dropped to below 0.1 ETH, presenting what could be an attractive entry point for a clean collection that has a unique, spooky vibe, and has shown that it has the potential to build further and perform well.
Yummi Universe
Over on Cardano, the Yummi Universe project, an OG range of NFTs with an enthusiastic community of holders, made the most of the bear market by roughly doubling the floor price of its Naru collection to around 1000 ADA (although it’s now corrected down a little).
This is due in large part to the team’s constant, upbeat building efforts, which have seen the creation of $YUMMI coin, the launch of an NFT staking mechanism, the appearance of further $YUMMI staking opportunities, and ongoing development of a play-to-earn game.
The most valuable NFTs in the Yummi ecosystem are the original Narus, and there are also seasonal Naru collections that can be staked, but which earn less $YUMMI than the originals.
For some other notable projects that have made moves during the bear, Tigerbob, Chimpers, and Okay Bears all performed well and are good quality, but have subsequently corrected down from previous highs, meaning they could be worth picking up.
And for any degen goths in the NFT space, there’s We Are all Going to Die, which has run very effectively with the no-roadmap-or-Discord, CC0, Twitter-only, meme-leveraged meta.
👉 GO PREMIUM TO SEE THIS WEEK’S TOP 3 NFT MINTS 👈
Final Notes
Thank you so much for your support, and I truly hope that today’s issue will give you insights needed to help you master your wealth.
We are always striving to improve our service so you can get the most out of it. Complete this short survey (takes <1 min to complete) and, as a token of our gratitude, you will get free access for 7 days to Wealth Mastery Premium!
This means that you’ll have free access to:
- Deep Dive Altcoin report & The Trending Coin Report
- Rekt Capital Technical Analysis
- Token sales, Airdrops and DeFi Tutorial
- NFT News, Tips, and Updates
Lastly, you’ll have access to my personal portfolio + weekly updates!
Simply click here to complete the survey and claim your free trial!
See you next time!
Lark and the Wealth Mastery Team
Legal Disclaimer
TCL Publishing ltd (director Lark Davis, owner of Wealth Mastery) is not providing you individually tailored investment advice. Nor is TCL Publishing registered to provide investment advice, is not a financial adviser, and is not a broker-dealer. The material provided is for educational purposes only. TCL Publishing is not responsible for any gains or losses that result from your cryptocurrency investments. Investing in cryptocurrency involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment. Investors should consult their financial adviser before investing in cryptocurrency.
Responses