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Invisible Friends Mint Breakdown

Floor Tracker, Super Bowl Ads, And More

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What's Dropping ⚡

  • Invisible Friends mints on 2/23 for 0.25 ETH.

  • Psychedelics Anonymous Genesis floor exploded yesterday and reached 4.9 ETH - currently it is sitting at 4.17 ETH.

  •  CatBlox minting on 2/17 with a mint price of 0.18 ETH

  • Listen to our Twitter Space with Wolf Financial covering Pyramid Punx & Party Shirt's Project Superstars NFT.

  • This video about NFT projects will have you in tears. Watch here.

  • Lots of questions are swirling around a project that fitness celebrity Bradley Martin was apart of - he was paid 94 ETH and the project rugged. Details here.

Invisible Friends Mint Breakdown 

Basic supply and demand theory teaches us that scarcity in supply plays a large role in the value of a product. Invisible Friends has 1/2 the supply of most collections we’ve seen to date. There will only be 5,000 NFT’s, as opposed to the typical 10,000 number we usually see. But scarcity (low circulating supply) is only relevant if there is demand— someone wanting to buy! When demand exceeds supply, prices tend to rise. I think it’s obvious that the artwork is quality and desirable, which contributes to demand. In addition to this, Invisible Friends has amassed nearly 500,000 followers on Twitter alone— 100x that of their supply! However, initial interest, or demand, doesn’t necessarily mean there will be stability in value...anyone remember Mekaverse? RIP. To understand stability, let’s talk about instability— or volatility. What makes price volatile? There are a few different factors based on our observations. For example, an items’ ability to be manipulated dictates the level of volatility. Those in the general finance space who paid attention to the GameStop fiasco this past year may possess a keen understanding of asset price manipulation. In the NFT space, it’s relatively similar. One key ratio we pay attention to is the “Supply to Holders” ratio. As a dramatic example, let’s say there are 10,000 items but only 100 holders (100:1). These 100 holders can very easily manipulate the price of the collection, contributing to volatility. In contrast, Invisible Friends has reserved nearly 5,000 unique, individual spots for buyers. Meaning there is a near 1:1 ratio, making it almost impossible for any single holder to manipulate the price— contributing to stability. Additionally, entry cost may contribute to volatility. When the cost of entry is higher, the user inherently adopts more risk, and the faster they may be willing to give up if the floor starts to shake. Fortunately for early access buyers, the original price of Invisible Friends has been set to 0.25 ETH. Now that we understand what factors generate value and contribute to stability, we must consider what causes the price of something to rise. When it comes to NFT’s, secondary market pricing is entirely dependent upon the community of holders. The 5,000 members of this community who were granted early access to buy had to work for it. These individuals created fan art, solved riddles, puzzles, won giveaways, or contributed to the Discord. We don’t imagine they will be very quick to give up their hard-earned possession. Which leads us to “availability.” The fewer items that are listed, the more autonomy sellers have in deciding the price they want to sell... and as we mentioned earlier, we know there are buyers!

So to be clear, we don’t actually know if Invisible Friends is going to be bigger than Bored Apes. But based on what we do know, Invisible Friends have rallied an incredibly authentic community of supporters that is rare to come across in this hyper-saturated market. Especially in light of recent events (having seen too many celebs, influencers, businesses, athletes, etc., trying to take shortcuts for quick cash) we hope that this sets a new standard in the space regarding how to go about building an authentic community. Although there is plenty that can go wrong in between now and their big reveal, Invisible Friends appears to be a remarkably different kind, and we hope they make it.

PA going craaaaaaazy

Coinbase Super Bowl Ad - Win or Fail? 

If you were tuned into the Super Bowl on Sunday, you more than likely witnessed the advertisement that mimicked the old-school DVD screensaver we used to see as kids. You know, the one that bounces off the sides of the screen as you wait for it to hit a corner? Yeah, that one.

Rumored to have cost upwards of $14 million for a single commercial, Coinbase made the strategic decision to swap a QR code in place of the DVD logo; a code that led users directly to their website. The nostalgia and simple effectiveness of the ad resulted in over 20 million people deciding their curiosity had to be quenched, and subsequently taking the action of scanning the code. With the sheer volume of traffic flooding onto their site, Coinbase essentially DDoS attacked their own website. A DDoS attack is a transgression that occurs when a network is inundated with a shockingly high level of traffic in a simultaneous fashion. The overwhelming level of interest led to an error message that popped up on the homepage for uses attempting to access the site. Typically, not something a potential new user wants to see, especially for a brand in the digital space.

It was peculiar to see an ad that was effective in its messaging, but not able to keep up with the demand that it subsequently created. 60 seconds. $14 million dollars spent. 20 million hits on their website. Website goes down. Coinbase will just have to wait until next year to try again. In the meantime, WAGMI.

Meme Drop 💧

FTX US NFT Marketplace 🔥

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Disclaimer: The Drop DOES NOT provide financial advice. All content is for informational purposes only. The Drop is not a registered investment, legal, or tax advisor or a broker/dealer. Trading any crypto-related asset is extremely risky and could result in significant capital losses.  

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