Whether or not you are aware of it, the NFT bubble is making some people scared. That’s because it’s threatening to wipe out some of the major NFTs and the companies that use them. So it’s important to be aware of this situation and know what to do if you’re interested in investing in NFTs.
CryptoKitties
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CryptoKitties is a digital cat game that was launched on the Ethereum blockchain. The gimmick here is the ability to collect and breed virtual kittens. You can even buy them and trade them. This is one of the first games that used a blockchain for trading.
The hype around crypto games has been high in recent years. But when will the bubble pop? And how will it do so?
A few weeks ago, the market for NFTs was a tiny fraction of the size it is today. But a few notable projects have started to gain some traction. Some of these are linked to colossal industries. Others are simply gateways into the metaverse.
One of the most notable is the decentralized finance movement, also known as DeFi. The decentralized finance movement consists of several projects that use a decentralized platform to make money.
Its first application is the creation of non-fungible tokens, or NFTs. These digital assets allow people to buy and sell intellectual property. They also help creative people earn money.
In the beginning, NFTs were mostly associated with video games. There was a great deal of hype around the new CryptoKitties and other such products. As a result, a new threshold was set for digital scarcity.
Although a lot of hype surrounds CryptoKitties, it isn’t the only game involving the blockchain. Another notable example is the tulip mania that erupted in 1637. While the tulip mania was a fad, the real-life counterpart was a disaster.
Although the decentralized finance movement isn’t quite as exciting as CryptoKitties, it is still a great way to make money. If you are looking to try your hand at a digital collectible, you might want to consider a game like Counterparty. Alternatively, you can invest in a company that makes and distributes NFTs.
CryptoKitties may have been the first game to use a blockchain to make money, but the game is not for everyone. To play, you’ll need a wallet on the Ethereum network. Alternatively, you can transfer the ETH into a Metamask wallet, which is available on most crypto exchanges.
Ethjets
While NFTs have been around for a while, they became a big thing after the mania surrounding CryptoKitties launched. Basically, an NFT is an in-game token that gives its owner exclusive rights to an item.
The hype around NFTs exploded into a full-blown collectible craze when they became part of the gaming metaverse. They are essentially digital artifacts, and some have sold for millions of dollars.
Although there are still hundreds of projects on the market, many haven’t hit the jackpot yet. Many of them will be worth zero when the cycle inevitably turns. Those looking for a way to get rich should consider the upcoming wave of NFTs, but don’t expect to reap rewards immediately.
A bubble is a time when the price of something rises quickly, and the price of the product or service increases faster than the supply can meet demand. In some cases, a bubble can last forever, but most of them come crashing down in a short period of time.
To know whether a bubble has formed, you need to look at the daily trade volume on an NFT platform. This is an indicator of the health of the market as a whole. If the average trading volume is lower than it was a few months ago, then the NFT market may be headed for the doldrums.
Another sign of a bubble is the amount of media coverage it receives. If there is not much press attention for an NFT, then it is likely that the prices will drop in a hurry.
However, even with the drop in NFT sales, there are still a few collectibles that have risen in value. For instance, the NBA TopShot video clip of LeBron James dunking the ball was sold for 208,000 ether in February. That is more than enough to buy a house in some parts of the country!
Hopefully, the hype has subsided and the NFT bubble has burst. If you’ve been holding onto these speculative products, now’s the time to get out. Otherwise, you could find yourself buried under a pile of dust.
LinksDAO
LinksDAO is a decentralized, autonomous organization (DAO) that is reimagining the country club. It is dedicated to revolutionizing the modern golf club experience. The company has been developing the DAO and has raised more than $10 million to operate the project.
To raise funds for the project, the LinksDAO team launched a token sale in January 2022. Their initial collection of NFTs sold out in 48 hours. They plan to build an impressive global membership that will open the course to the community.
Using the money from the sale, LinksDAO will launch the LINKS governance token. This token will grant voting rights to its owners. Linked members will also receive access to members-only Discord channels, as well as a range of golf perks.
LinksDAO is partnering with Five Iron Golf, a company that specializes in indoor golf experiences. In exchange for their support, LinksDAO plans to offer a month’s free membership to Five Iron and annual appreciation nights.
LinksDAO will also buy a physical golf course. But first they need to raise the necessary capital to purchase one. Luckily, the LinksDAO team has the financial acumen to do so.
Although they are not yet ready to purchase a physical course, the team is planning to do so soon. They hope to do so by the end of this year. And if they get their way, they may even purchase a golf course in the metaverse.
As a member of the golf club, you’ll have a say in the future of the course. LinksDAO has created a detailed roadmap for the NFT project, and will soon launch the LINKS governance token.
The LINKS token will give you voting rights within the DAO, which means that you’ll have a direct influence over its operation. Eventually, this new form of currency will allow everyone who has an Internet connection to participate in the decision-making process of the LinksDAO project.
LinksDAO’s NFT project is a unique and groundbreaking venture. However, it is important to be careful when investing. If you are interested, do your research and make sure to only invest what you can afford to lose.
Fear of missing out on NFTs
FOMO, or Fear Of Missing Out, is a real emotion that people experience when they feel they have missed out on an opportunity. It is a strong emotion that can have detrimental consequences, even if the investment is not a financial risk.
The market for Non-Fungible Tokens (NFTs) has experienced a boom over the past year, thanks to social media, influencers, and new technologies. However, NFT investors are still dealing with a fear of missing out. This fear can have dire consequences if impulsive decisions are made.
When you’re making investments in NFTs, take time to educate yourself. Learn from the mistakes of others. Enjoy the successes, but don’t let the fears of missing out overwhelm you.
If you’re a first-time investor, you may be tempted to jump in right away. But it’s important to remember that mistakes are a part of the investing process. As long as you’re learning from your mistakes, you’ll never be incompetent.
Even if you’re already a trader, you might have experienced FOMO. In this case, you need to take some time off from trading. Focus on the projects that have potential to become successful.
Investing in an NFT isn’t a bad idea, but you need to know when to get out. There’s no guarantee that any project will succeed, and you don’t want to waste money on projects that are losing value.
You should also keep in mind that the number of projects is outpacing the number of investors. Because the supply of art-based NFTs has increased, there’s a risk of dilution. That’s why it’s a good idea to diversify your asset classes.
Getting out of an NFT doesn’t have to be a huge hassle. Just be sure to write down your reasons for getting out in Word or Excel, and you can track your trades.
The best way to overcome FOMO is to not let it get you down. Instead, use the tips mentioned above to help you invest without it. With a little time and effort, you’ll be able to find the NFTs that will be successful.