All NFT value goes to the top:
- Almost all NFTs will go to 0
- Overall NFT market to trend exponentially higher
- Where does value accrue?
- Tier 1 Assets: ENS 3 Digits/super prime letters, Fidenza, BAYC, Punks, key NFT art
- How many total tier 1 assets? 25k, 30k max
Why Tier 1?
- Fresh mega wallet comes in and offers on/buys 3 assets
- 000.eth, Fidenza, BAYC in that order
- These type of buyers want high correlation to NFT market cap
- If bet is NFTs become $2T in a decade, these assets will matter then
- Class A real estate
ENS 3 Digits
- Like Fidenza, there’s only 1k 3 digits vs BAYC’s 10k
- Over time, I would expect 3 digits to rise materially above BAYC, as they are 10x scarce & have greater universal appeal
- Over time, perhaps even a super tier 1 emerges, 5k total assets w/ 3ds in it
Tier 2
- Great Spot Too
- ENS 4 digits, blue chip pfps & gen art
- There’s probably ~150k+ Tier 2 assets
- These will also capture disproportionate part of growing pie
- Higher liquidity, can spread a wider net with less funds
Game Plan
- As ultra high net individuals & asset managers enter NFTs, they will want to buy certainty - Certainty that what they buy goes up if entire market cap of NFTs grow
- They won’t mess around with a 1.2 eth floor pfp, they will allocate to high probability winners
By 008