I owned this beautiful ape above. 😁
February and March were great times for NFTs!
Beeple, Everydays – The First 5000 Days NFT
A Beeple Everydays collection sold for $69 million! 😲
Then came an NFT or “non-fungible token” project Bored Ape Yacht Club. This NFT project gained popularity when most people thought NFTs were dead.
What made Bored Ape Yatch Club so unique? 🤔
Owning one of these Bored Ape NFTs gave you full ownership rights.
The ape is your property.
Legally, people need my permission to use my ape in a TV show, derivative artwork, comic book, clothing line or anything involving it.
At first, I thought it was just a picture of a monkey. 😂
There are 10k original Bored Apes.
Some cool things I was able to do with my ape was sell merch with it!
There are sites like Maddie’s that allows you to create a store on their site. Once you connect your NFT, it gets placed on their merch.
Every sold merch with your NFT will earn you about 15-18 % commission.
Is this starting to make sense? 🤔
The NFT hype started with art but that market proved to be very illiquid without many use cases.
You can now add your NFTs to sneakers and all kinds cool things!
We’re now seeing many great utilities around NFTs.
Imagine owning a character as marketable as Bugs Bunny? 😳
You can basically become its agent… every cereal, amusement park, TV show, movie, book, or anything with Bugs Bunny will be paid out to you.
Since you own the NFT, you are the owner of the Bugs Bunny estate.
SO WHAT HAPPENED TO MY APE???
Well, I’m an early NFT investor and have been involved since 2018. So I always enjoy a good experimentation. 😂
I’m always the Guinea pig unfortunately…
One of the best NFT use cases I’ve ever seen is NFTfi.
Your NFTs are assets that can be used to take out loans!
Earlier this year, I was able to take out a $7k loan on my Boss Logic “Forever Memba.”
That was my first ever NFT loan.
Later on this year, I won a Beeple “Illuminated Path” piece from a Makersplace raffle.
Instead of selling that Beeple I took out loans on it. 👀
I took out an 8 eth ( ~$22,400) loan around May and paid it back a month later. Yes, a $22k loan on an NFT I paid $7 for. I repaid the loan around late June.
Eventually, I took out a second loan with my Beeple for 11 eth, about $22k at the time. It was due on July 23rd.
Unfortunately, the cryptocurrency market tanked. 😳
Things weren’t looking too good. 😂
My loan was due July 23rd.
I couldn’t sell my cryptocurrencies (I was REKT) and my most liquid asset was a Bored Ape.
I sold my ape…
However, I’m still in profit and haven’t invested any of my own money this year. Even though I sold my one ape, I was able to invest in many other NFT projects.
My current loan with my Beeple piece is longer with a 90 day duration.
In the future, NFTfi plans on extending their max loan term from the current 90 day max.
I’ve been able to borrow up to 29 eth (~$80k) in 4 months from a Beeple piece that I won for $7.
I never sold this NFT.
Since my Beeple is so valuable, I don’t think I’ll be taking out anymore loans on it. On NFTfi, the NFT used to borrow ETH or Dai is given to the lender if the loan isn’t paid back in time. Unlike the real world, nobody will be calling or knocking on your door for missed payments.
I plan on using fractional.art to fractionalize it. There are only 7 Beeple “Illuminated Path” NFTs compared to 10k Bored Ape Yacht Club NFTs.
Imagine if I fractionalize my Beeple into 100k pieces to sell to the community. 🤔
This solves the illiquidity with some art pieces and gives more people a chance at ownership similar to Bored Ape Yatch Club.
We are witnessing utilities for NFTs that seemed impossible in the traditional art or collectibles industry. And this is just the beginning…