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🥛 Is the NFT market about to boom?

🥛 Is the NFT market about to boom?

Shaan Puri & Ben Levy
April 05, 2022

GM. This is the Milk Road where we untangle your brain every morning.

Today’s estimated read time: 3 minutes and 12 seconds

We’re in the green again with prices today, I could get used to this…

Let’s get into the good stuff for today:

🖼️ Is the NFT market about to boom?
🐦 Elon buys 9% of Twitter
🧊 Ice Cube's basketball league is selling ownership with NFTs
📉 ETH supply is nearing historical lows

THE NFT MARKET IS ABOUT TO GET BIGGER

NFTs get a lot of hype. 36% of Moms have heard of NFTs.

That’s a made up stat, but you get the idea.

But in reality, only ~1.4M users have bought an NFT on OpenSea (the biggest marketplace for NFTs). That’s a tiny number. That means 99.9% of the internet has not bought an NFT.

I think that ratio flips. And in the end, 90%+ of internet users own an NFT of some kind within the next 15 years.

Btw - if you think 15 years is a long time, just think about the fact that Lion King came out 28 years ago. Let that sink in.

One big driver for NFT growth will be Coinbase’s new NFT platform, they currently have 3.7 Million users on the waiting list.

Back in 1990, it would sound strange to have your own website domain (www) and email. Soon enough, we all had email, and even your local chinese restaurant has it’s own website.

NFTs are at that 1990 stage right now.

ELON BUYS 9% OF TWITTER

Elon Musk just bought 9.2% of Twitter for ~$3 Billion dollars, making him the company’s largest shareholder (he owns 4x more than @Jack, the founder of twitter who owns ~2.25%)

The stock jumped 25%+ on the news.

Elon now owns only a handful of liquid assets (that we know of):

Tesla Stock
Twitter Stock (new)
Bitcoin
Ethereum
Dogecoin

He’s been tweeting about free speech, and so it seems like that’s the motivation behind becoming the largest shareholder. Most people suspect he’s going to push twitter to be less censorship heavy and more of a free speech platform.

TODAY'S MILK ROAD IS BROUGHT TO YOU BY COMPOSER

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ICE CUBE'S BASKETBALL LEAGUE IS SELLING OWNERSHIP THROUGH NFTs

Ice Cube, the famous rapper and actor, is the founder of The Big3, a basketball league for washed up NBA stars.

Today, they announced that they’re selling fractionalized ownership of the teams through NFTs.

The quick and dirty details:

The league is aiming to make $66m with the NFT sales
If you buy the $25k “”Fire” NFT, you get licensing rights and a % of the sale price (if the league or team ever sells), but no revenue share across the team’s core revenue streams
If you buy the $5k “Gold” NFT, you get to vote and attend strategy calls with Ice Cube

The Milk Road’s Take: Hard pass. I wouldn’t buy the whole league for $66M. Sorry ‘Cube.

ANOTHER MILK ROAD SCIENCE FAIR BOOTH

Every week, we’re gonna show you things we’re using ourselves aka our “science fair.”

Today's booth: Zapper.

Zapper makes it super easy to track the value of your wallet …and other people’s wallets too.

For example, check out one of Gary V’s wallets:

QUICK HITTERS

Starbucks announced that they’re going to win back Unionized workers by getting into the NFT business. This is not a joke. This is actually what they said.

Gh0stlyGh0sts launched last night and is the first NFT collection that was built using Layer Zero (the hot new protocol) with 2,000 NFTs across 5 different chains.

BitMEX, the world’s 5th largest exchange, fired 75 employees today - about 25% of its workforce.

Iron Mike Tyson is launching a new Mystery Box NFT collection on Binance. The mystery box includes stuff like boxing gloves, merch, autographed memorabilia, etc.

Crypto.com partnering with a group of private companies in Australia to provide crypto payments options at ~200 locations. These will include gas stations, restaurants, drive-through locations and more.

CHART OF THE DAY

Source: CryptoGucci

One of the big “positive signs” for crypto is when there is a low level of coins on exchanges.

Why? Because when a coin is on an exchange, it’s easily accessible to sell. But coins moved off an exchange are typically done for longer term holding plans.

So - right now we are seeing very low levels on exchanges (lowest since Jan 2018, when ETH hit an all time high)