Crypto markets in general are in quite a slump since bitcoin hit it’s all time high of $69,000 about 2 years back. We are more or less moving sideways since then around the $20K mark. What bitcoin does influences the entire crypto market so as expected all sectors in crypto whether DeFI, NFTs, Altcoins, new Blockchain projects are all feeling sluggish.
In this post I will be focusing mainly on NFTs which were the hottest area in crypto during the last bull run and saw the maximum amount of funds being pumped it. NFTs have recently taken the biggest beating compared to other crypto areas and flow on money into NFT projects seems to have dried up completely. The situation seems to be getting worse with each passing month and even the biggest NFT collects which people consider too big to fail have started to fail. There are people fudding even collections like Crypto punks and BAYC.
Impact on my NFT portfolio
If you have been reading my previous posts you would have noticed that I was always very bullish on NFTs as a concept and tried all aspects of NFT projects whether PFP collections, Art, Gaming, Utility based and even new concepts built on NFT.
PFP Collections - This was the first kind of NFT type I ventured into and though I never had the funds to hold a Crypto punk or BAYC/ MAYC, I do hold several collections from the next tier like Lazy Lions which is my profile pic in all my social media accounts, Doge Pound, Wolf Game and many more. What’s common to all these collections is that there was a time when they had floors over 2 ETH and are now are worth less than 10% of their peak value.
NFT Gaming- This was the NFT type I am most bullish on in the long term and there will not be many popular NFT based gaming projects that I have not tried across different chains. I hold Splinterlands, Mobox, Axie and several lesser known projects like Project Nebula and SpaeGame. In many of these projects I invested about 2-3 ETH of funds when ETH was worth close to $4K and many of the NFT games are on the verge of collapse. SpaceGame got it’s liquidity pool drained, Project Nebula is on hold as they don’t have funds to pay their devs for any new feature implementation. The only NFT type which is still in green is Runi of Splinterlands as it’s a small collection and people are hopeful of it’s future utility.
I will not get into details about the other NFTs as then this post will turn into a mini book.
In terms of total NFT portfolio there was a time when my NFT holdings were worth over $250K and if I were to liquidate my entire holdings now accepting the floor offers I will not be able to raise much more than $25K.
If you wondering how did I manage to hold on to my sanity or the most of it during such disastrous times is that firstly crypto is still a side gig for me and looking at the bearish scenario I probably will have to continue my 9 to 5 for a few more painful years.
I also made it a point to diversify across different areas in crypto so I never went all in on NFTs.
Another factor was that I did not invest into NFTs from my own pockets as it was mostly funds I got from airdrops and from flipping NFTs.
What’s my Future plan with NFTs?!
I have not sold any of my NFTs after the markets crashed despite most them bleeding hard any many might never recover and even go to zero.
This is to some extent expected as I knew majority of NFT projects will not sustain long term and a few will survive long term and the key will be to identify them.
I am still hopeful that once the market goes into the next bull run some of the OG NFT collections will make a strong comeback. The big question is which ones to which no one has a clear answer.
Cheers,
Sam