How to Make $1.6M Playing NFT Games
An 18-year old pro-Fortnite player just made $1.6M for winning Yuga Labs' Dookey Dash game. Will this lead to a mass onboarding of gamers into the NFT space?
TylerD's Market Summary
Today's headlines include:
-Mongraal's mega sale
-Yuga heads to Bitcoin
-Doodles drop new alpha
-Momoguro mint details
-Adidas and token-gated sneaker drops
🔑 The $1.6M Golden Key
That is the offer that Mongraal, the winner of the Dookey Dash game, received yesterday on his top prize of the golden key.
Traders have speculated for weeks on the market value of that key, widely thought to be the only true 1/1 NFT in the Yuga Labs ecosystem.
For some perspective:
The gold fur Bored Apes (46 supply) have been selling in the 600-700 ETH range over the past year
The Mega-Mutant apes (just 12 supply) have traded north of 1,000 ETH on the private market.
So 1,000 ETH seemed to be a pretty "fair" market price for this asset, if not low by some accounts.
How The Sale Went Down
Last week the Pixel Vault UPDAO voted to make a 690 wETH bid on the key.
Mongraal had until Sunday to accept the offer, and ultimately turned it down.
Then 9gag, the CEO of Memeland, entered a 999 wETH offer on Monday morning.
This likely would have been enough to cement the deal, but apparently Mongraal and his advisors had already been in talks with Adam Weitsman, CEO of Upstate Shredding.
They gave Weitsman the chance to match or beat 9gag's offer, he did, and the rest is history.
And oh, Mongraal was kind enough to pay Yuga Labs their full 5% royalties on the sale (a whopping 50 ETH).
Well done sir.
Will this be a mass onboarding event?
I am not so sure.
The bull case is that Mongraal has 4.64M subs on YouTube and this huge sale is likely going to make a splash with his followers.
We have already seen pro gamers enter in decent size to play Dookey Dash, with most whales and big BAYC holders partnering with gamers to up their scores in the past few weeks.
But the bear case - will they only come to chase big prize pools?
And if so, how many $1M+ top prizes are going to be given out in NFT games in the coming months?
Not too many.
Without big prize pools, I don’t currently see the path to gamers coming over for our existing set of NFT games.
So I do not see this as a mass onboarding event, yet.
But more and more major companies and big players are entering the Web3 gaming space each week (EA's founder Trip Hawkins just joined a Web3 start-up last week), and that wave will come ashore eventually.
And it will likely be huge.
🙊 Yuga Heads to Bitcoin
Yuga Labs has been teasing "TwelveFold" over the past week with little additional information.
Well, last night we found out the details, in a blockbuster late-afternoon announcement.
Yuga is launching a 300-supply generative art collection on the Bitcoin blockchain using the Bitcoin Ordinals.
This is just the latest bullish headline for NFTs on Bitcoin, which have been surging in popularity stemming from the Ordinal Punks craze from a few weeks back.
Those Ordinal Punks are holding a 4.5 BTC floor (64.6 ETH or $105,000), and speculation is already running wild for the price target on TwelveFold.
Here's What You Need to Know
The details we have so far include:
What is it? A base 12 art system localized around a 12x12 grid, a visual allegory for the cartography of data on the Bitcoin blockchain.
Who is the artist? Yuga Labs' in-house art team
When is it coming? Yuga will be announcing more details about timing and the auction mechanics in the coming week.
Where? Bitcoin. Specific site still TBD.
How? There will be an auction coming later this week, held in Bitcoin.
Why? This is the million-dollar question. The move feels off-brand for Yuga, which has focused to date in the PFP and gaming sector. But using their words "Fuck doing expected things."
This is going to be big and likely a whales game.
Current speculation is that the floor will come out at 5 BTC (71 ETH) or higher.
For perspective, that's basically the Fidenza floor, and significantly higher than Ringers (48 ETH floor).
This means that art from Yuga's in-house art team will likely be outperforming the top generative artists in all of crypto and NFTs.
Get your popcorn ready.
For those that want to dig deeper, see this official link from the Yuga team.
🚚 What else is happening in NFTs?
Here is a list of the major headlines from Monday, a slower day in NFTs:
Trading volume came in at 43k ETH, with Blur capturing a 76% share; most NFTs slighly red on the day
Parallel Alpha opened its "Closed Alpha" Discord as they prepare for the upcoming game launch
Doodles announced that all of the Genesis Box NFTs will contain rares or exclusive items (but if everything is “rare” then nothing is, right?), briefly sending the floor up 50% before retracing (now 0.18 ETH)
Momoguro released new details for its upcoming mint, featuring an 8,888 supply and a 0.22 ETH mint price (after a Mega-spaces in which 6,300+ attended)
🌎 Around Crypto and Web3
A few other Crypto and Web3 headlines that caught my eye:
The crypto market chopped on the day; BTC +0.4% at $23,500 and ETH -0.2% at $1,630
Fujitsu is partnering with Mitsubishi to develop a metaverse that will "update Japan through the power of games"
adidas' Web3 lead flirts with the idea of launching token-gated sneaker drops in the future
🚀 NFT Total Volume
MAYC (4,329 ETH, 15 ETH Floor)
BAYC (2,982 ETH, 68.5 ETH)
Clone X (2,501 ETH, 4.7 ETH)
Moonbirds (2,480 ETH, 6.3 ETH)
Doodles (2,372 ETH, 5.35 ETH)
📈 NFT Floor Price Increase
Genesis Box (21%, 0.19 ETH Floor)
PROOF (14%, 17 ETH)
Captainz (13%, 5.6 ETH)
Kubz (11%, 0.83 ETH)
BAKC (8%, 7.95 ETH)
🗓 Upcoming NFT Mints and Reveals
Today is an interesting day of new art drops.
Jeremy Booth made a big splash a few weeks back with his Boots open edition and Wrangler collab, and that will put a bigger spotlight on his 100 supply edition drop today at a reasonable 0.15 ETH mint.
Sabet is back with his Bad Bunnies, though supply is on the high side at 10,000.
And Des Lucrece is the wild card, with his Accept/Decline drop happening sometime today (allowlist only).
Make Haste by Jeremy Booth (10:00 a.m. ET); 0.15 ETH mint
TOKYO PUNKS | BAD BUNNIES by SABET (12:00 p.m. ET); 0.07 ETH mint
Des Lucrece - Accept/Decline (12:00 p.m. ET)
Origins by Avium - reveal (TBD)
Parallel - close alpha (TBD)
Enjoy this write-up? Follow along with me on Twitter @tyler_did_it or reach out via email firstname.lastname@example.org.
For all volume and floor price data, see Lucky Trader's Project Rankings page.
For all upcoming mints, see Lucky Trader's Project Schedule page.