May 23, 2022
Should companies invests in NFTs?
First it was community, then celebrities, now it is companies.
There is a wallet out there that holds $10M worth of NFTs.
MoonPay is a crypto payment company that was founded in 2018.
Justin Bieber, Ashton Kutcher, Snoop Dogg and Gwyneth Paltrow invested in them.
With Tiger Global, Coatue and other big institutional hitters throwing money at them, they are valued at whopping $3.4B.
Now check this out:
“Moonpay purchased Bored Ape #9921 on Saturday for 265 Eth or $759,000 USD.”
“Currently, Moonpay is the 28th largest holder of Bored Apes with an account worth at least 3,685.7589 Eth or $10,504,412 USD, according to Rarity Tools.”
They have 15 BAYC in their custody.
“Moonpay also holds 16 Otherdeeds (no Kodas), three Mutant Apes and an M1& M2 Mutant Serum.”
So I have to ask:
Why would a legitimate company go buy an NFT?
Aren’t NFTs speculative, irrational, low-value and spotty quasi-investments favored only by retail investors that predominantly yell “stonks” and “yolo” as they burn their lunch money into crypto?
Could it be that the founder of MoonPay is a secret investor in Yuga Labs, the company behind the BAYC franchise?
Could it be that NFTs have finally broken through the defence of institutional investors?
Could it be that blue-chip NFTs are finally seen as a stable, reliable type of investment by the market?
Why would the board of directors at MoonPay be Ok to let the company invest $10M into NFTs and incur the risks?
I can think of a few reasons:
A) Blue-chip NFTs are proving to be a worthy investment as the price climbs steadily over time.
Still, its only been a short time, so it is still considerably risky.
B) BAYC is literally the highest distinction amongst Blue-chips and dominates the market.
But this is crypto and everything could go sideways in a matter of days, who knows.
C) The company behind BAYC has respectably raised $450M and is valued at $4B, and has some heavy industry hitters backing them, raising their legitimacy.
D) $10M is chump change for a MoonPay.
Chump change or not, its the principles that really matter.
E) Perhaps they want to use the copyrights of the BAYC and make some revenue from it?
That is an interesting concept, for owners to produce merchandise and whatnot from the NFTs and earn revenue from it.
F) They want to send a message.
As a crypto company in the crypto world, owning a blue-chip, well-known and extremely popular NFT like BAYC will buy them legitimacy, allowing them to be part of the exclusive community of celebrities and luminaries.
So…time to buy a BAYC?
While most retail investors and common joes like me are definitely priced out of the action, perhaps it is time for companies with the moolah to starting considering owning some NFTs?
What do you think, should companies own blue-chip NFTs?
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Should companies invests in blue-chip NFTs?
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