#108 - Gary Vee on the state of NFTs

Plus, ApeCoin staking with Binance 🥩

Author

joe hitchcock
December 13, 2022

GM and welcome to Decentra Daily.

We're the Sam to your Frodo – always by your side as you journey through Mordor the bear market.

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Today,

  • Gary Vee's verdict on the state of NFTs

  • ApeCoin staking through Binance

Top 24 hr NFTs sales

via DappRadar

  1. Dreadfulz #164 sold by 0xfc...2c3e on X2Y2 for 193 ETH

  2. BACK 2 REAL #001 sold by 0x94...103d on OpenSea for 100 ETH

  3. CryptoPunk #4763 sold by 0x97...24b8 on CryptoPunks for 83.5 ETH

  4. BAYC #6057 sold by 0xac...9b7a on OpenSea for 76.84 ETH

  5. BAYC #4773 sold by 0x1f...5e45 on OpenSea for 78 ETH

Gary Vee's verdict on NFTs in 2022/3

Around a year ago, Gary Vee tweeted that 99% of NFTs will end up being bad investments, and only a tiny minority of projects will make it:

A year later, Gary has returned to his prediction, with his thoughts on the state of NFTs in 2022 – and what might be in store for 2023.

So why does Gary think most NFTs go to zero?

One of Vaynerchuck's favorite ways to explain the current NFT market is by comparing it to the early 2000s .com boom.

During that time, a rush of new internet companies flooded the market, all claiming to be the next big thing. In reality, most didn't stick around for long.

But, amongst that pile of opportunistic startups were the companies that became web2 behemoths.

"Many projects will crash and go to zero like Pets.com, but there will be some – that 1-3% of projects – that will become the Amazons and the eBays."

Gary thinks the same thing is happening now with NFTs. That means investors need to try and determine which projects "will still be standing once the dust settles."

Any advice on how to do that, Gary? 🤔

What you need to know:

  • Vaynerchuck highlights the extra FUD about NFTs from traditional media this year

  • With 2023 looking bearish, Gary thinks another NFT boom is unlikely anytime soon

  • But, he predicts the projects of 2023 will be more "grounded" than 2021

Gary also says that oversupply, short-term thinking, and bad operators are 3 elements holding the market back.

Oversupply

Right now, it feels like there's an NFT project for every niche, hobby, and price point – and that's not a great sign.

"The demand has not and will not be able to keep up with that extraordinary level of supply, and any time that happens, there’s a bubble waiting to burst."

Short-term mentality

The allure of buying into an NFT project that suddenly moons can make people see $$$ and forget to do their homework.

"Everyone’s way too selfish, way too fast, and lacking thoughtfulness. This is a marathon, but everyone’s treating it like a micro sprint and a gold rush, and that’s why most will lose."

Bad operators

Gary points out that "one of the biggest pros of NFTs is also one of the biggest cons" – that anybody with an internet connection can make their own NFT project.

“There’s now a huge number of people with no real knowledge of things like business, long-term community building, culture, day-to-day operating of a staff, and creating demand.”

BTW, Gary says these issues don't apply to his own NFT project, VeeFriends. 😂

Tweet of the day

On the web3 wire

ApeCoin staking rewards + stake through Binance

ApeCoin's much-anticipated staking feature launched last week, in collaboration with chain solution experts Horizen Labs.

$APE holders and other members of the yacht club can now stake their coins & NFTs on ApeStake.io.

Rewards rolling out

The APE community has set aside 175 million ApeCoins for staking rewards – that's 17.5% of total supply.

Rewards will be distributed to stakers over three years, starting yesterday, with 100 million slated for release in year one.

How does it work?

ApeCoin has four staking pools to choose from, depending on the assets you hold.

Those with a Bored Ape, Mutant Ape, or Kennel Club NFT all have options – but you can also stake if you own $APE without a Yuga NFT.

The only caveat is that BAKC holders need to pair their NFT with another asset to get staking benefits.

BUT - No staking for US & Canada on the official platform

Due to "current regulatory uncertainty surrounding reward pools," Horizen announced that ApeStake.io will not be available for Apes based in the US/Canada for the foreseeable future.

However...

ApeCoin's Twitter account not-so-subtly reminded followers that there are other, non-official ways to interact with the staking contract, which aren't affected by location restrictions:

Binance ApeCoin staking program

Also yesterday, the Binance ApeCoin staking program went live.

Anyone who owns an NFT within the Bored Apes ecosystem can participate in convenient staking directly through Binance.

Here's an FAQ on how to get started and set up a fixed staking period within the platform.

What you need to know:

  • ApeCoin is the governance token for Yuga Labs' ecosystem

  • $APE was airdropped to members of the Yacht Club back in March

  • Staking lets users lock up some of their assets for a percentage-based reward

  • On the first day after launch, nearly $32 million APE was staked

c u tmrw!

👋

Meme of the day