A user identified on Twitter with the pseudonym 0x650d, is a cryptocurrency enthusiast who caused a stir last week when he bought 104 non-fungible tokens (NFTs) from the CryptoPunks collection for USD 7 million. “So much money for a hundred pixelated faces?” many wondered, but the answer was even more surprising: “I always choose wealth,” said the author of the expensive operation.
User 0x650d used a thread on the network) microblogging to explain his vision regarding the cryptocurrency ecosystem. He expressed his wish that he could go back in time to buy bitcoin below USD 10. But, being something impossible to achieve, he has now decided to believe in NFTs as safe-haven assets , as financial resources that increase or, at least, maintain their value despite market turmoil are often called.
Just as the time to buy bitcoin, you also can’t buy the first NFTs launched by CryptoPunks, said 0x650d referring to the project launched in June 2017. “If you want scarce digital real estate, this is Ground Zero, and soon $ 10,000 will become $ 21 million, “he added.
So why buy the 100 least expensive punks on the market instead of a rare one? The short answer is liquidity and diversification. The rising tide will lift all boats, but especially the smallest punks, as more and more people will try to own one. As global demand for scarce assets increases in an increasingly digitized world, I believe punks will be one of the assets that will make the biggest profit.
of Twitter identified under the pseudonym 0x650d.
The case of 0x650d is not isolated, on the contrary, each Perhaps it is more common now that the faces of zombies and tokenized aliens are fueling a new boom in the NFT market , as recently reported by CryptoNews.
CryptoPunks : How do you store value?
In its recent report on the state of the network, CoinMetrics tries to discover what is behind this new boom in the NFT market that is emerging now after a strong downturn experienced in the last months.
In the report, the data provider’s analysts observe There is a correlation between the NFT market and the price of ether (ETH), which is understood because generally NFTs are priced in ETH.
There may be some reflexivity between the NFT market and the ETH price. People buy ETH to buy NFT, sell their NFT for more ETH, and often reinvest that ETH into more NFT. NFT’s high sales are drawing new attention to ETH and helping to attract more users to the Ethereum ecosystem.
Network Health Report from Coin Metrics.
So you mean that people are using NFTs as a haven of value? Well, this seems evident in the Coin Metrics graph in which shows the astronomical growth that CryptoPunks prices have experienced .
In March of this year the sale price Average NFTs of pixelated faces was roughly $ 60,000, while eight months later, CryptoPunk’s average sales are making above $ 150,000 , that is, a yield of more than 150%. A profit greater than that offered in eight months by ETH that at today’s price is below 100% and that of bitcoin with less than 45%.
A billion dollar avatar
CryptoPunks are famous on Twitter where many users who have one use them as their profile picture. However, in this environment also these particular pixelated faces have many adversaries. Some believe that buying them is not a good investment , while others say they do not understand the value of these collectible tokens. But despite everything, sales continue to increase.
For example, OpenSea, NFT’s largest market, reached a peak of more than 60,000 sales during the last week, which multiplies by eight the sales peak reached in March . In addition, the volume of trade registered on this platform has already exceeded USD 1 billion in August, and the number of daily unique buyers has also reached a new all-time high, as noted by Coin Metrics in its report.
In any case, the faces of zombies and Pixelated aliens are not the only ones to be seen on Twitter, where the use of ape avatars is on the rise. This is the new Bored Ape Yacht Club (BAYC) collection, a project that has also had millionaire sales with minimum prices set at 15 ETH or USD 45,800 according to the CriptoNoticias price calculator at the time of writing this note.
In addition to BAYC, other collections of tokenized profile images have risen on the OpenSea charts. Following a Twitter war with BAYC, Pudgy Penguins’ trading volume soared, surpassing $ 13 million on August 13, Coin Metrics notes. These cartoonish penguins are also invading the Twitter ecosystem where they are being used as an avatar.
