May Market Update 🥽
FOMO in May and Stay for NFTFi Summer
Risk assets have continued to outperform against record shorts and market collapse expectations. US debt ceiling issues have slightly tempered markets but that seems to be behind us now. Tech stocks are up >12% in May with AI driven exuberance pumping NVDIA and other names. Risk-on continues in a fairly stable long move up in equities. NASDAQ 100 just hit a 14 month high and macro, inflation, rates, and liquidity are aligned to keep us moving into a blow-off top as FOMO kicks in and sidelined cash and money market assets gravitate towards faster horses.
VanEck just published a white paper on Ethereum and see $50k by 2030 in their bull case. Bitcoin has a newfound energy behind it driven by a technical upgrade that allows building on Bitcoin and diversifies the bullish narrative beyond just store of value.
NFTs seem to have largely bottomed in a sea of apathy and are now waiting for demand to return. Most collections have <2% of the supply listed and Blur’s new Lending Protocol (BLEND) has injected some new liquidity into the space and taken some pressure off flipping by removing listing rewards. NFT Finance (NFTFi) can be very powerful once the bull market returns. Amazon is expected to launch its NFT marketplace anytime now and Apple is expected to unveil an Augmented Reality headset in a week. Both developments could be very interesting for Web3 assets.
I have been fascinated with developments in AI and have been using ChatGPT a lot. Fading AI now is like fading the internet in 1997. Here is a NFT remix of Till I Collapse by Eminem that I created with AI.
(Verse 1)
NFTs, the new wave, I'm here to educate,
In the digital realm, where we dominate,
Blockchain-based, unique, non-fungible,
A revolution in art, it's undeniable.
I'm spittin' fire, burnin' up the charts,
NFTs, my canvas, my works of art,
From digital paintings to collectibles rare,
The crypto world's watchin', they stop and stare.
I'm makin' moves, makin' history,
Tokenizin' culture, it's a masterpiece,
Every pixel, every line, it's a legacy,
A virtual gallery for all to see.
(Chorus)
Till the blockchain collapses, I'm stackin' NFTs,
Building my empire, leavin' my legacy,
From crypto kitties to virtual estates,
I'm the rap star artist, breakin' the gates.
(Verse 2)
Investors flockin', they see the potential,
NFTs, the future, it's essential,
From sports memorabilia to music rights,
The possibilities expandin' day and night.
The critics doubt, but I'm provin' 'em wrong,
My NFTs sellin', singin' a new song,
Digital scarcity, a concept profound,
Ownin' a piece of history, worth more than a pound.
The art world shiftin', it's a paradigm,
Collectin' tokens, it's my hustle, my grind,
Makin' headlines, disruptin' the scene,
NFTs reign supreme, fulfillin' my dreams.
(Chorus)
Till the blockchain collapses, I'm stackin' NFTs,
Building my empire, leavin' my legacy,
From crypto kitties to virtual estates,
I'm the rap star artist, breakin' the gates.
(Bridge)
From the metaverse to the real world,
I'm transcending boundaries, lettin' it unfurl,
The power of ownership, it's in our hands,
NFT revolution, takin' a stand.
(Verse 3)
I'm creatin' value, generatin' wealth,
My NFTs tradin', increasin' my stealth,
From artists to fans, we're all participatin',
In this decentralized world we're cultivatin'.
The auction's on, the bids are risin',
The market's boomin', no compromisin',
A tokenized future, we're witnessin' it now,
NFTs, my legacy, forever endowed.
(Chorus)
Till the blockchain collapses, I'm stackin' NFTs,
Building my empire, leavin' my legacy,
From crypto kitties to virtual estates,
I'm the rap star artist, breakin' the gates.
(Outro)
NFTs, the game-changer, the new sensation,
Embracin' technology, a digital revelation,
I'm the rap star artist, pushin' the envelope,
Till the blockchain collapses, I won't lose
My top investment ideas are CloneX, Mutant Ape Yacht Club, Checks, Opepen, Dookey Dash Sewer Pass, Otherside, RTFKT Animus Egg, Moonbirds, Doodles, Murakami Flowers, Ethereum, Bitcoin, and ARKK.
RTFKT completed the Nike X RTFKT AF1 forge with LeBron James seen wearing a pair. After their RIMOWA collaboration, they are expecting to launch the MNLTHX experience and likely release an Animus update.
Otherside is expected to launch Legends of the Mara game anytime now.
Bored Ape Yacht Club’s HV - MTL collectibles are expected to have the next element of the story and utility released anytime now.
Moonbirds announced a collaboration with Spotify, held their Diamond Nest exhibition and are expected to release more information on Mythics very soon.
Doodles released a collaboration with Pharell (team member) and Adidas.
Jack Butcher & Jalil have been leading Web3 with relentless innovation and continued development around Checks and Opepen Edition collections. They released a new collection, Elements, and auctioned it off at Christie’s as well as revealing the art for Opepen 003 & 004 Editions with the same opt-in mechanic we saw with the first two.
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.