Investment law of NFT projects

Concerning new things, people who pay attention are always full of expectations and excitement on the one hand, and anxiety and doubts on the other. Investors who are concerned about investing in the NFT field have this sentiment.

Recently, more and more people in China have begun to pay attention to NFT tokens. Among the many NFT tokens, the most popular one is the various avatar (Avartar) projects. In the book “Blockchain: The Soul of the Metaverse”, I call this type of project a “club” type of project.

The most well-known such avatar project is the Boring Ape (BAYC). In recent days, the “New York Times” also reported on a newly emerging popular project Pudgy Penguin. These popular projects have attracted a lot of attention from inside and outside the circle with amazing increases.

Friends who are interested in such projects but have not participated will be anxious: On the one hand, the popularity is so high now, should you follow up? On the other hand, the price is so expensive now, will there be any risk in buying. Friends who have already participated will also be anxious: What is the law of market trends in the NFT field? Should these purchased tokens be held forever or at what stage should they be realized?

In my opinion, the market rules of NFT projects are the same as Bitcoin, Ethereum and DeFi tokens. They are both bulls and bears, and they will encounter both the climax and the trough of the market. Therefore, the general rule is: buy in a bear market and sell in a bull market.

The better understanding of “sell in bull market” is to sell the NFT projects held when the bull market is approaching its climax. There are two ways to “buy in the bear market”: one is to buy NFT projects with low prices one by one during a bear market downturn; but some high-value NFT projects such as cryptopunk and boring ape, even in a bear market , I don’t think the price will be cheap, so we can use a fragmented way to make fixed investments for this type of token.

Fragmented fixed investment NFT projects, I think it is very suitable for our general investors to invest in high-value NFT projects. This buying method is described in detail in the article “NFT Investment Trends: “Fragmentation”” on August 3.

I myself plan to use fragmentation to make investment in high-value NFT projects that I am optimistic about in a bear market.

Speaking of the moment, some well-known NFT projects, such as cryptopunk, are they worth buying at this time? To make this judgment, we must first judge the follow-up trend of the big market.

I think after the second half of the bull market is officially established, according to my original estimate, it may be able to go to the end of this year or the beginning of next year, then the prices of these NFT projects such as cryptopunk will continue to rise. However, how much room they have for subsequent upside in this round of bull market is worthy of careful consideration.

Therefore, if investors are willing to take risks, they can order such NFT projects by buying fragmented tokens; if investors are worried about risks, I suggest that they simply ignore its follow-up trend and wait until the bear market to do so. This can be done for high-value NFT projects, and the same can be done for other NFT projects.

I still insist that there are many opportunities in this field, and we are still at a very early stage, so we should not have a lost mentality of missing opportunities. As ordinary investors, even if we have not caught the most profitable first wave of original dividends, we can still catch the second and third waves of dividends. The opportunity for the second wave of dividends, I think, lies in the subsequent bear market after this round of bull market.

In addition, how many of these popular NFT projects, especially these avatar-like avatar projects, have long-term value, it also needs to pass the test of the bear market to see. Therefore, when we intervene in the bear market, we can see the true value of the project and select good projects on the one hand, and on the other hand, we can also avoid the risks of bubbles and market irrationality.


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