In This Issue
- For this weeks portfolio tip, I’ll be talking about searching for the market bottom.
- Sam has a report for you on Cool Cats NFTs
- Rebecca has this week’s top trending coins.
- Zero-Kowledge Proofs: Trustless authentication is yet another awesome concept with plenty of development happening around it!
- Jesse’s Altcoin Report: Aptos has been all over the news lately but is the new blockchain by the team that was behind Facebook’s Libra coin a good investment?
- Defi Tutorial: Defi Dad has a tutorial for you on how to earn 9% APY with the DAI Vault on gTrade.
Lark’s Portfolio Tips
In Search Of A Bottom
Is the bottom in? That is the million-dollar question right now in the markets and here is the simple answer. No one knows. We all have our guesses and models and ideas, but when it comes down to it we are all simply speculating on future events.
There is of course a chance that $17,600 was the cycle low. But, most market participants are calling for lower lows to come. And considering how slavishly Bitcoin has followed equity markets this seems plausible.
At this point, the contrarian idea is that the bottom is in. Only a few dare to whisper of such an idea. Largely because the macro scene remains so aggressively bad, this is one of the worst years for stocks, bonds, and real estate on record, as well as being terrible for crypto.
So how to play this?
- Set bids and chill. Putting in bids for your favorite coins at crazy low prices like Bitcoin at $14,000. Maybe they get filled. Maybe they don’t.
- Accumulate. Bear markets are times to stack up on coins at a discount. Just keep in mind that not all coins will make it so be careful not to take on too much risk!
- Wait. You actually don’t need to be trying to do a lot right now. You can just wait for a confirmation of market reversal. Sure, that will be far from the bottom, but insane gains can still be had.
- Keep hustling. Realize that you can be trading every day. That there are airdrops to claim. There are NFTs to mint and flip. There are yields to farm. So many people get so obsessed with when the market will bottom that they miss the opportunities here, now.
- Or, you can just wait to buy the top next cycle and then sell the next bear market bottom. Jokes, jokes, jokes!
At the end of the day, we must understand that it is not necessary to perfectly catch the bottom. 99.9% of the money made in this market is between the top and bottom. Almost no one perfectly buys the bottom and sells the top.
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Cool Cats NFTs by Sam
Looking back at NFTs that launched in 2021, when JPEGs were experiencing a mega WAGMI bullrun, Cool Cats is an interesting early collection. Part of the upper tier, they were definitely NFTs you wanted to get hold of, but the collection entered an extended price decline in 2022, appearing to fall behind projects such as Bored Ape Yacht Club (although of course, everything fell behind BAYC), Doodles and Azuki, among others.
However, Cool Cats, despite the enormous dips, has managed to maintain its presence and a loyal following, and recently enjoyed a resurgence of interest, but could this lead to Cool Cats climbing back up the rankings in the coming months?
What are Cool Cats?
Image credits: Cool Cats
Cool Cats launched in July 2021, and are based on Blue Cat, a character created by Cool Cats illustrator, Colin Egan. The collection received a huge boost via celebrity ownership, starting with Mike Tyson, who changed his PFP to a Cool Cat on Twitter, and also including Reese Witherspoon and NFT aficionado Steve Aoki.
With its prices soaring and NFT summer in full swing, Cool Cats ascended the NFT pecking order to become, for a while, the number three collection behind CryptoPunks (which basically occupies a unique, historical category of its own), and Bored Ape Yacht Club.
Image credits: Cool Cats
From there, Cool Cats launched a companion collection, Cool Pets, and incorporated the entire Cool Cats ecosystem into a game-like world called Cooltopia, with its own internal economy and a token called MILK, which can be earned by Cool Cats holders.
This kind of development model–companion collection, native token, gamified ecosystem–has been imitated by many NFT projects, but Cool Cats was among the earliest projects to experiment in these ways.
Cool Cats also hit some problems along the way, including criticism of its tokenomics, the appointment of a new CEO in January who then left after just three months, and, of course, the wild turbulence of this year’s crypto crash, which hit NFTs later than the rest of crypto, but with no less impact.
As NFT prices dropped and volumes declined, Cool Cats in particular, compared to the other so-called blue chips, appeared to have lost critical momentum.
What is Cool Cats’ Price History?
Chart from NFT Price Floor
When Cool Cats minted, it cost just 0.02 ETH per NFT, but by October the collection had hit a floor price close to 15 ETH (with the average sales price closer to 26 ETH). There was a correction, and then a second price peak, with the floor again around 15 ETH, at the beginning of February 2022.
That all occurred during a period of extreme NFT bullishness, but the Cool Cats floor price subsequently experienced a prolonged downtrend through most of 2022, briefly dropping below 2 ETH in September.
It’s important to emphasize, though, that this kind of price decline happened across the NFT market, with many collections hit worse and with no prospect of recovery.
In context (a brutal crypto crash and global economic crisis), for Cool Cats to have maintained a floor price around or above 2 ETH (which is 100X more than the mint price), and come out the other side still in business and building for the future, reflects well on the collection.
At the beginning of October, floor prices had been hovering around the 2.8 ETH mark, a strong uptick last week then took the floor to around 3.5 ETH for a short time, and it is now back around 3 ETH. This perhaps reflects the nature of the market right now, in both crypto widely and NFTs specifically, where gains are quickly sold off.
Why is there Renewed Interest in Cool Cats?
Image credits: Animoca Brands
Cool Cats have the longevity (by hyperspeed, NFT standards) and status to maintain a higher price, and NFT traders who were active throughout 2021 may see them as undervalued. But still, there needed to be a catalyst to get prices moving again, and that came from the announcement that Cool Cats was partnering with Animoca Brands.
Animoca Brands is a huge investor in NFTs, GameFi and web3, and has committed to a strategic investment in Cool Cats. Related to the partnership, a subsidiary of Animoca Brands, GAMEE, is working with Cool Cats on a game, called Cool Cats Combinations, that is available through the crypto gaming platform Arc8.
GAMEE is a play-and-earn mobile gaming platform that has over 40 million global users, while its Arc8 application is marketed as a virtual arcade where players can earn rewards through gaming, also functioning as a gamified launchpad for tokens and NFTs.
Another major announcement adding to positive sentiment was the September appointment of a new Cool Cats CEO, Stephen Teglas, who has experience working for Disney, RECUR and Warner Brothers.
The long-term Cool Cats plan appears to be to utilize its IP in blockchain gaming, and other web3 and metaverse-related applications. This is good news for Cool Cats holders, who own an original asset within the brand and have exposure to a solid-looking enterprise.
Regarding prices, when a collection is legit and established, upward trend movements can lead to further momentum in the same direction, and Cool Cats looks cheap compared to other projects in the same bracket.
On the other hand, we’re still in a deep bear market and NFT trading volumes are low. That in mind, if you’re not in a hurry, then Cool Cats–which has investment, strong foundations, and is active on the gaming side of NFTs–looks worth holding as a long-term proposition.
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Trending Coins This Week by Rebecca
Here are my key takeaways from the trends this week, and there’s been a lot of newness – developments, launches, and token listings.
1 – Quant Network aims to be the first OS built for blockchains. The team attended the Sibos conference bringing together global financial services. The conference included discussions about the future of money, including the development of CBDCs.
2 – Casper Network is an L1 smart contracts platform that’s announced a developer hackathon in collaboration with Siemans. Casper has also launched NFTs on the platform with its CEP-78 protocol.
3 – Morpheus Network is a supply chain blockchain software that’s started its KYC testing of potential Beta node operators. The Morpheus co-founder recently spoke at the Supply Chain Innovation Summit in Chicago, US.
4 – Terra Luna Classic (LUNC) is the original version of the Terra blockchain that’s announced a big upgrade is coming to the network. The Terra v23 upgrade will make the network fully compatible with other Cosmos-based blockchains.
5 – GMX is a derivatives exchange on Arbitrum that’s received increased exposure due to recent token listings on Binance, FTX, Huobi, and KuCoin. Find out more about GMX HERE.
6 – Phala Network is a privacy cloud computing service and one of the top risers over the past week with 200%+ gains. The network has undergone some recent upgrades and has seen its token listed on Gate.io, increasing exposure.
7 – Battle Infinity is a play-to-earn (P2E) gaming ecosystem that launched staking in September and already has $5M in total value locked (TVL). With up to 25% APY available, investors are jumping in.
8 – EthereumPOW is the minable version of Ethereum that hard forked after the Merge. The proof-of-work ecosystem continues to grow, with over 100 projects in one month.
9 – Optimism is an L2 Ethereum scaling solution that’s launched its NFT bridge with an average transaction cost of less than $0.20 in gas and up to 100x faster than the mainnet.
10 – Ethereum transactions have become more censored with 51% of blocks in a 24-hour period now compliant with the U.S. Office of Foreign Assets Control (OFAC) rules. Ethereum wallet, MetaMask, is also adding bank-to-crypto transfers.
11 – Evmos is an EVM on the Cosmos network that’s launched support for multi-sig accounts, allowing developers to test DeFI, NFT, and GameFi use cases. Evmos has also been impacted by a critical security vulnerability identified in the Cosmos IBC protocol.
12 – Polygon is an L2 Ethereum scaling solution that’s launched its zkEVM public testnet. Polygon has also announced it’s working with India’s Police to reduce corruption by launching police reports on the blockchain.
13 – Cosmos Hub (ATOM) powers the Cosmos ecosystem and the team has found a critical security vulnerability in the IBC protocol. Cosmos developer, Agoric, is developing a native stablecoin, IST, ahead of its mainnet launch for the Interchain.
14 – Moonbeam is an on-ramp to Polkadot that’s announced MintDAO as the winner of its Connected Contracts hackathon. Moonbeam has also seen L2 scaling solution, BobaBeam, hit 100,000 transactions.
15 – Fantom is an L1 DeFi blockchain that’s seen Fantom team up with Google Cloud and Motalis for a DeFi hackathon. Bitfinex has also listed the following Fantom ecosystem tokens: Hector Network, Retreeb, and SpookySwap.
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.
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Lark and the Wealth Mastery Team
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.