My Latest Altcoin Pick - Why I Am Strangely Bullish!

My Latest Altcoin Pick - Why I Am Strangely Bullish!

By Sapphire | Sapphire Crypto | 1 Oct 2020


Boom Time?

Many are expecting the NFT sector to really boom in the next couple of years and I would tend to agree. I still believe DeFi is going to have a fresh second season of growth, mostly linked to DeFi projects with multiple use cases. It is possible that this could perhaps coincide with a significant surge in the NFT space. The biggest challenge is going to be how to play the NFT market and I have an idea that may well pay off. Some may disagree due to the tokenomics of the project but I have a sneaky suspicion that in a frenzy, tokenomics will not play much of an influence but more on that later!

The NFT Rush

If Crypto Kitties is anything to go by, it is going to be extremely difficult finding collectables that are actually going to be viewed as rare and collectable. In other words, the tokens that will actually find value in the marketplace and as a result change hands with an ever increasing value. There is currently a lot of junk in the NFT marketplace and that will most likely increase in the wake of a boom!

What is being tokenized and how it holds value is a metric that still needs to be discovered and understood by many current participants in the NFT space. Tokenizing something does not guarantee value and many are still to grasp this concept.

This is why I believe one of the best strategies for NFT's is to repeat the approach of the 1925 gold rush and rather invest in the platforms that make it possible. People selling equipment and supplies in the gold rush became more wealthy than those actually mining gold.

My Strategy

I will not be buying NFT's but rather investing in projects like Rarible. I know that RARI is a governance token that currently has inflationary tokenomics but I believe that could change and even if it does not, a frenzy will not take any of that into consideration. Rarible is one of the most widely used platforms for users to create, showcase and sell their NFT's. One of the key components in the token's favor despite obvious reasons is that the market cap is pretty much nowhere, a measly $10 million. 

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Regardless of tokenomics, it is almost impossible for RARI to remain at these levels if NFT fever hits and Rarible is on the lips of many. Currently 75K RARI are issued every week to users of the platform. This is generally seen as negative for the price and it is, yet sometimes there are exceptions to the rule. A key example of where typical dynamics failed to play out was the recent UNI airdrop.

Every single person that had ever used Uniswap received hundreds of tokens and yet the price continued to rise in spite of obvious sell pressure. It makes sense that if you received $1000+ worth of a token for free that you would most likely sell it fast in order to realize your gains in ETH.

This is clearly not my average pick but I am looking towards alternative outcomes and a bit of a gut feeling. I guess we will see how this works out, if at all. As always, this is not investment advice, please do your own research and own your own moves.

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Sapphire
Sapphire

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Opinions are my own and not financial advice.


Sapphire Crypto
Sapphire Crypto

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Opinions are my own and not financial advice.

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