Update (14/04/22): Land sales on Skybreach
Hello, friends! This is James Agenda here.
In this post, I'll keep you updated on the best NFT projects on Polkadot that I have in my personal portfolio.
And I'm also talking about my strategy for each project.
I'll eventually update this post with the NTFs that I'm buying, so subscribe for free to don't miss it.
This is not financial advisement nor paid advertisement.
It's only my personal opinion and my investment thesis.
I hope it'll help you decide on your own investment strategy.
If you want to save some time, you may navigate through the underlined topics:
#2 NFT: Soon
Evaluation Criteria on Polkadot NFTs
In this post, I'm not evaluating NFTs on whether it has a "beautiful ART" or another subjective aspect.
My analysis focuses on profitability.
For each NFT project, I'm evaluating if it is a good investment opportunity with a great risk/return ratio.
And by profitability, it's not only aiming to flip NFTs.
I also consider whether the NFT can offer passive income generation or another usability.
Criteria 1: 💼 TEAM
For me, this is the most crucial aspect of any project.
As I already said in my post about Polkadot Ecosystem being 80% of my Polkadot:
Through life, I learned that the gap between a good idea and success is mostly great execution.
And,
When a new interesting crypto project pops up, the first thing I check is the team behind it.
Criteria 2: 🔮 POTENTIAL
The Polkadot ecosystem is the most advanced crypto technology.
And we are still in the beginning, in the first year of parachains running.
My investment thesis is that Polkadot will eventually achieve Ethereum's present MarketCap and beyond.
Based on that assumption, I evaluate the potential of Polkadot NFTs by comparing them to NFT on Ethereum and other blockchains.
The question is:
How much the top NFTs on Polkadot could grow if Polkadot achieve Ethereum current marketcap?
#1 NFT: RMRK, Kanarias & Skybreach Metaverse
🕵️ What are RMRK, Kanarias, and Skybreach?
RMRK is more than just a regular NFT project.
The Team developed a new NFT technology (like "NFT 2.0") that is being used by many other NFT projects on the Polkadot Ecosystem.
The innovative technology allows users to combine different NFTs like legos.
They also are planning to launch a metaverse called Skybreach, as described in this post on subsocial by RMRK's CEO, Bruno Swader.
These are my most important insights about the Skybreach post:
Metaverse Land sales are coming soon (Q1, so until next month);
Kanarias holders will receive free land;
Kanarias will be the governance ticket.
Genesis items will have special attributes.
💼 RMRK, Kanarias and Skybreach TEAM:
RMRK's Team has a significant advantage: they are not anonymous.
Anonymous teams can indeed deliver outstanding results, but an identified team always has more skin in the game.
This is because people are puting their names and reputation on the project.
On the RMRK website, you can check on their Team:
RMRK team is led by Bruno Skvorc, which worked at Web3 Foundation as Technical Educator for almost 2 years.
I could find even more employees on their LinkedIn.
🔮RMRK & Kanarias Potential:
Since we are talking about a project that involves Marketplace, Metaverse, and NFTs, we can look at its potential from those different perspectives.
First, let's look at $RMRK as Marketplace Token.
These are the main NFT Marketplaces on Ethereum:
OpenSea: estimated value on $13 billions.
Lookrare: fully diluted valuation of $1,2 billion.
RMRK has right now a fully diluted valuation of $134 million.
So, if someday Singular (RMRK's marketplace) becomes as big as Ethereum's NFT marketplaces, $RMRK could make around ~7x to ~70x.
Now, let's take a look at $RMRK as a Metaverse/Game Token:
I picked the fully diluted value of the biggest cryptos metaverses/game right now:
Defi Kingdoms $1.2 billion
Decentraland $2.4 billion
Sandbox $5.6 billion
Axie Infinity $9.1 billion
If Skybreach becomes as big as one of them, we may see $RMRK making from 5x to ~50x.
And finally, looking at Kanarias
Comparing its Floor price with some NFTs on Ethereum, including the biggest ones (Cryptopunks and BAYC):
We could see Kanaria's floor making from 4x to 90x.
Of course, Kanaria's floor doing a >50x is a long shot.
But then again, we are talking about one of the first and most iconic NFTs on the Polkadot Ecosystem.
Right now, comparing Kanarias with Cryptopunks or BAYC is very audacious.
But in a scenario where Polkadot Ecosystem surpasses Ethereum, this comparison would be completely plausible.
📊My strategy for $RMRK and Kanarias:
The great potential for RMRK and Kanarias relies on Polkadot Ecosystem parabolic growth, which I already expect for the long run.
That being said, my investment in $RMRK and Kanarias is also something for the long run.
I may take some profits in a 5X scenario, selling 20% of my initial investment.
Still, most of it I intend to hold for a long time while tracking RMRK's team deliverables.
Right now, while I'm writing:
Kanaria's floor is around ~$2400 (18 KSM);
and $RMRK is around ~$13.
I choose to split my investment ~50% in $RMRK and ~50% on Kanarias + genesis items.
The main reason to split it is to diversify, mainly because both $RMRK and Kanarias will have utility on the Skybreach Metaverse.
I also expected to make some passive income with the assets.
Take a look, for example at lands usability:
"This fancy scroll can be used to claim a piece of land in a premium, otherwise unclaimable zone in Skybreach. The owner of this land can use it like any other: mining, building, crafting, camping, even renting it out to others."
Update (14/04/22):
There will be 25'000 land plots for sale in the first dutch auctions:
16k common starting at 50 xcRMRK each
5k rare starting at 150 xcRMRK each
1k epic starting at 250 xcRMRK each
Looking at these numbers, my strategy will be:
trying to buy some epic at the higher prices;
and wait for rare and common to drop in price.
This is it for now.
I'll update this post in the future when we get more news on RMRK and Kanarias.
Also, I'll include other NFT projects on Polkadot/Kusama that I'm choosing for my portfolio.
Consider subscribing for free to keep yourself informed on NFTS on Polkadot & Kusama!
Cheers! 🥂