OC

In a Gold Rush, Sell Shovels. In an NFT Craze, Provide Liquidity.

By VVoytila | Grindset | 4 Jan 2022


The oft quoted motto referenced above, originally applying to the Californian gold rush(es), remains perhaps unsurprisingly fitting today. Many modern phenomena could be likened to a gold rush, but few so convincingly as the current non-fungible token craze. Just as with any gold rush, the potential for hitting enormous profits draws in a crowd of people convinced they know where to look for the next huge headline-making discovery, bringing them eyewatering profits. While in ordinary conditions wealth has a tendency to coagulate in the "higher" echelons of society, in a gold rush the inequality is way more grievous since profits fall on people seemingly at random, endowing previously rather obscure creators with insane wealth from often anonymous buyers. While wit and skills play a crucial role in this, as always, the more or less justified illusion that just about anyone can strike it big perpetuates the greedy frenzy.

What gets overlooked is how all the people getting involved in the NFT space require the digital equivalent of trousers, shovels, pickaxes and dynamite. Minting an NFT requires a blockchain and costs a currency. There may be platforms enabling the deferral of costs or their transfer from creator to buyers of "artworks", but the principle that an NFT requires a sacrifice of sorts remains. Those who want to capitalise on the current trends might find their efforts most profitable when applied to the creation of digital tools for the NFTsphere. This is however not something that just about anyone can do, even above-standard code-monkeys are at times baffled by blockchain programming and so becoming a developer without crypto-specific experience is for sure not for everyone. There is however a simple way to apply the shovel-selling principle in the digital space.

I discovered that the provision of liquidity between NFT-enabling currencies and the main asset on their respective blockchains can generate a satisfying return. I do not want to disclose too much for fear of being stalked, but I have seen surprisingly large and fast returns from providing liquidity on Quickswap to the DUST token. I am sure a similar phenomenon can be observed with other similar projects. Lastly, if anyone wants to get 0.25 DUST a day you can do so very easily, simply by logging in here with your wallet. There is no fee and no minimum withdrawal and who knows what the future holds for this and other projects. Nothing is certain except the fact that when people rush to make a profit, they need the means to do so and the person who figures out how to sell them their lottery tickets will make more than those who hit the jackpot combined.

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VVoytila
VVoytila

I love Christ.


Grindset
Grindset

"Investing" in crypto is like digging through trash. Any value you get out of it you are happy with, because you just did not expect it. By now you are probably a social outcast and no one understands what you are talking about, normal people avoid your gaze, but you don't care, you only look to your red line going down or the same line going up. Now it is green. The colours are in your head... Ok, now listen up, I am going to give you my hard earned tips about life, the universe and everything.

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