August Market Update ❄️💀
Summer Doldrums Amidst NFT Winter
Equities & Crypto have spent the sleepiest summer month in a holding pattern with largely low volatility while NFTs saw yet another capitulation event. Mega tech is driving the NASDAQ with NVDA melting faces. Volatility is likely to return in September, driven by a global rise in liquidity. China has been lowering rates and recently lowered capital gain tax on stocks to pump up markets and offset a weakening economy (China is a lead indicator). My risk asset thesis has been playing out well except for NFTs, which have yet to find a bottom and have absolutely cratered this year. The drawdown from all-time highs is >95% for most established projects and >99% for the others. At some point the tide will turn, but no one knows when. The third week of August saw the most losses taken out of any other weekly period over the entire history of most projects. Moments like these usually mark capitulation, let’s hope that is true now. Also, it seems that there are fewer Blur farmers driving floors lower, more NFTs have been picked up by new wallets and above floors, and only a small percentage of holders are trading. Within 6 months, we will have the Bitcoin halving (sentiment), Otherside Metaverse (platform), and the Apple Vision Pro (experience). In 6 months the entire space will be looked at differently and make more sense to the outside world.
My top investment ideas are CloneX, Otherside Koda, Bored Ape Yacht Club, Checks, Opepen, Otherside, RTFKT Animus Egg, RTFKT MNLTH X, RTFKT x Nike Dunk Genesis CRYPTOKICKS, Doodles, Ethereum, Bitcoin, and ARKK.
RTFKT x Nike Air Force Ones should be hitting the streets soon and a Project Animus update is close. Also, there is a cornucopia of other announcements related to ecosystem assets that could be imminent.
Yuga’s Legends of the Mara is planned to launch this summer, that means in September. Also, Wreck League launches in the next month. This could be a big driver for all Yuga assets including Ape Coin.
Doodles CAMP experience has been blowing people away and they announced a collaboration with Crocs.
Jack Butcher & Jalil launched a new development for the Opepen Edition site where anyone can submit artwork.
The next investment idea will be out soon. If you haven’t already, please upgrade your subscription now to receive it when it is published.
To the moon and beyond,
Andrew
Disclaimer
The content of this letter is for informational and entertainment purposes, and should not be construed as personal investment advice.