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      Are Recessions GOOD for NFTs?

      Theme: Are recessions good for NFTs?



      Transcript:

      [00:00:00] today on all about affordable and FTS. The question session is actually good for and FTS. Andrew, what do we say in the news?

      [00:00:08] Yeah, what are we seeing out here? We've got new companies, new, what I'd say traditional finance type of companies coming into the metaverse. We've seen lots of companies keep buying properties and filing different trademark.

      [00:00:21] Applications for metaverse usage and we've got this terrific last couple of days, you've got American express and HSBC, both announcing plans for the metaverse. I think it's just with trademark applications at this point for Amex. Although I believe that HSBC is actually going the 3d world route and acquiring some land rate in the sandbox.

      [00:00:44] So actually haven't noticed many financial. Institutions going towards the sandbox. It seems like decentral land has been the platform of choice for whatever reason for financial companies. But certainly I've seen a lot of activity with the sandbox. So interesting that HP SBC has chosen to go there.

      [00:01:00] Yeah, it's interesting. I was like, which one you're going to go with? I would say to central and far more established and more detailed graphics and user interface there. As far as that goes, in terms of being able to run around an actual metaverse, but people are moving to.

      [00:01:13] Yeah, and it seems like they are taking it the very literal metaverse way of being greedy world.

      [00:01:19] We'll see if that ends up being the way that a lot of people play with the metaverse or interact with these companies in the metaverse. But that is the way there they seem to be going at this point. In other news, we've got English, premier league. We've talked about them a little bit and how the bidding was getting crazy.

      [00:01:34] But the thing eventually went to consensus a big OT company in the NF or in the crypto space. They are the creators of Metta mask in FIRA an IPA or a API that runs a lot of NFT. Services behind the scenes and a number of other things, but it's a big company. So they are partnering with the premier league and it's a big money.

      [00:01:57] And he goes a three-year deal for ended up being, let's see almost $600 million. So we get a lot of money here and I would expect big things from this partnership.

      [00:02:07] Yeah. I think big sports, new audience, global market. I really like global market coming into it because. The more, you can also diverse away diversify away from just American buyer's needs.

      [00:02:19] There's less oh, here's this week happened to be good news from the executive order. Who knows what next week is. So the more you've got a global stability in the market, the better and healthier, I think you end up with as an NFT marketplace.

      [00:02:32] Yeah. And I see you've got one other item that you've just added to our list.

      [00:02:35] Your George, what do you guys are tasty?

      [00:02:38] One. There are whispers of a meta mask airdrop area. Again, being the stuff that gets handed to you because you are using a platform, holding an NFT or doing something that indicates that your wallet is in fact involved. And, mask is the probably number one safest smartest way to be interacting with your NFP is logging in and going between different websites like open seat and others.

      [00:03:03] They have confirmed that they are going to launch their own token. The rumor and now we'll do our best to keep track of it is that anyone has made a swap on the platform, may get an airdrop when they introduce their own token. So if you have not swapped on metal mask, maybe consider, especially when gas is low throwing some money between USBC and Ethereum.

      [00:03:25] Again, this is not financial advice because I'm talking about. Airdrops.

      [00:03:29] Yeah, that's a good point, but yeah, not a bad idea to go use the protocol, a big use meadow mass, and you'll make those transfers. They do take a bit higher percentage. They find you the best price when they're doing a swaps, but they do take a small percentage.

      [00:03:44] That's how they make money. So of course that's how. That's how you'll be eligible for the airdrop. I've heard some people are placed apparently posting jobs for people to just create wallets for them and use them like this. So there are many people preparing for this in the same way. But it's not a bad idea to go ahead and do that and make yourself eligible with this.

      [00:04:04] Yeah, for sure. Right there, hand stuff out. You might as well get a little bit, and also quick shout out to the ransom NFC market data. You've been doing some heavy lifting, I'll say on really gait, really great dune analytics dashboards looking at seven day 30 day 90 day looks at average trading volumes and across different platforms, including the theory and polygon and often ism.

      [00:04:30] There's some really great stuff. So by all means, find that in the show notes and take a look at some of these really cool dashboard. Yeah, we

      [00:04:37] don't quite actually don't have the polygon optimism quite yet. You sign up

      [00:04:41] there,

      [00:04:41] you click and click on it. Yeah. You'll get to sign up for when we've got that coming, but do you have some things in the works there?

      [00:04:48] So those are also available on dune analytics, which I use to create these dashboards. It's now on a site that will pull in some additional API for added data, still add in some more. Areas there that's a random X, Y, Z is the easy way to get there. And as George mentioned, we do have that in the notes as well.

      [00:05:06] Oh, that's awesome. So speaking of some of these analytics, I can't help, but note that chart goes down, numbers are going down, I think the question of recession. In the U S sense is in question, looking at fed rate hikes recently saying, how do we stave off inflation, but also avoid stagflation or a full recession by causing, the money tightening in the wrong ways.

      [00:05:33] And I think in a big picture, the way I look, I don't understand macro economics. I don't think there's anybody who really does. It's really complicated, but. Less money in the system, less discretionary spending probably leads to less investment in things that are probably not critical, such as NFT investing in playing around in general, right?

      [00:05:54] The looser, the wallets, the more free spending cash that people have, the more likely that something like a luxury good, which I'd qualify it and MTS would go up and then conversely, bad things happen if recession. So that's kinda like where we land, but I think there's actually. Upside to moments like this.

      [00:06:10] Yeah. Yeah, I think for one, we really don't know how a recession and the NFTs will go together. We haven't seen this and FTEs are young. We haven't seen them go through a recessionary market. You don't know if it's coming or not. We've seen certainly cold cycles in the crypto market. Yeah.

      [00:06:27] In those cases as we've mentioned, in our last episode, we had a good report from Nansen that discussed how NFTs have actually performed quite well as a hedge against crypto prices, or at least a theory of NFTs have so maybe we'll see that that same scenario play out.

      [00:06:46] That being said, I could see some prices taking. Quite a dive. If real discretionary spending starts getting I don't know, drawn back a bit. It could be tough to to hold on to all of these this JPEG.

      [00:06:58] Look, we have seen it, as you said, when, there was the big market pullback in result to the pandemic, Bitcoin dropped to 3000 eith was trading well under a thousand. And those were times where conviction was tested and had you bought in and understood wait a minute, this is something that's not going to go away.

      [00:07:16] I think. Recessions or times when uncertainty is shaken out of the market and people that are just don't have that type of thesis that wait a minute, this is something cultural. It's something that is going to have long-term staying power there's opportunities and better opportunities not to frame it.

      [00:07:34] Jump in and buy something that's wildly overpriced for where you are with height. It's actually a safer time to get in and test and to some of these projects, as opposed to, maybe where we were that was like red, hot back in, October with both the price of E and NFTs launching every single second.

      [00:07:53] It was just, it was really easy. I will say to this lose half a needs just because. Chose something that you're like, oh the rocket shit's going to take off. I need to jump in. And this is where the prices are. You just normalize these much higher numbers, much higher risk. And I would say on the plus side here that recessions or temporary pullbacks we'll be good to settle some of the like ridiculous projects.

      [00:08:15] I think that we're rising up and shake out the ones in focus, the ones. Have staying power that, that maybe you just.

      [00:08:22] Yeah, I think that's a good point. I think that's potentially how the market may react is really getting rid of the low quality projects and focusing more on, on the good projects.

      [00:08:33] And, as we've discussed a little bit in the. There's still a relatively small number of good solid NFT projects with reputable teams that you can really rely on. And, that's where people are going to find their way. I think if you've got to sell everything and, unfortunately some things, it gets tough because they, the liquidity dries up quickly in some of these projects.

      [00:08:54] But I think that will help to focus on the ones that are building that are doing new things. And it'll give them. I dunno some more time to do that. I think if this does happen versus what's happening right. Or has been happening in this past year, which was, you had to always be the loudest and shiniest object, you had to always be getting attention and that's not, that's not always great for the health of the project.

      [00:09:14] If that's what the team is busy doing and not necessarily building things that are going to have lasting value, I can go the wrong way. So I think there's some opportunity for the great projects to shine through here. And I think that. Know, I think that's what we need to look for and start looking at, which ones are going to handle this well, and which ones are more likely to maybe not even turn it run but just not be able to navigate the the next, whatever, months or years bring.

      [00:09:42] I also look at it as a time to kind of dollar cost average in two projects that I have conviction on that I believe in, or I believe in the team. And just so happens at this moment in time. They're just getting dumped on for instance right now Pegasi it's it's in game currency, visit.

      [00:10:01] Has dropped significant. It went from, hovering around, like it got up to 28, 20 1 cents to now it's at, 0.0, zero six. It's not looking great, but I still believe in like where they're driving and, I was actually looking at their the founding NFTE assets, which have just dropped considerably.

      [00:10:20] They haven't the last time they were this low, it was like around when they were getting like minted and original. So I think there's opportunities when. Recession overall, downmarkets pull down projects that maybe you have a personal conviction in to say oh, interesting. Now it's being tested, ironically, I think Zed actually was going through a much more downmarket when I was talking about in the fall, when everything else was going up, Zed was just getting crushed because of various reasons. And now it's actually on a, on an upswing, there are ways of looking at individual projects as micro economies because look, it's so small.

      [00:10:55] I think this is important. It's so small that even. A macro recession environment. The fact that only a handful of people from a percentage basis are holding NFTs and more people will be coming in. It may just simply overrun it anyway, it's, there's a leak

      [00:11:13] better.

      [00:11:13] The space and people are building Eden when it's quiet, I'd say maybe even, especially when it's quiet and that's not going away. These people have raised money to go and build these NFT products. There's going to be more products coming and, they may not all be great, but I think there's going to be some real winners here that will.

      [00:11:31] Bringing more people into the market we'll keep and tasting people to keep their money in NFTs, not go looking necessarily for, I think most people in NFTs or otherwise looking at other crypto assets and that may not also be, may not be most people's expertise or interests, especially if they came in through NFTs.

      [00:11:49] So I don't know that this market is just going to go away because maybe the prices go down a bit. I think it's going to take a, I think the, it could shift a lot of. And that we're not, you personally, I'm going to see every project be able to just mint out right away. I didn't say prices. And as he said, that could be, it could be a healthy thing for this market.

      [00:12:07] All right. That's where we got a little silver lining on what we're seeing in the overall potential recession, but positive things to look forward to. And Hey, on the upside, looks like Keith is. It's trending up, but it depends on what hour you're looking at.

      [00:12:21] That's right. We don't know what day or hour,

      [00:12:23] we don't know when you're listening to this, but Ethan is probably, hopefully

      [00:12:26] let's just tell you it eats up.

      [00:12:27] Okay. From at some point.

      [00:12:29] Alright, thanks.