Have you created a personal strategy plan for the non-fungible tokens (NFTs) in your wallet? Being prepared for whatever it is you want to do will ultimately decide your fortune.
If you presently own any number of NFTs ask yourself, ‘Do I have a strategy for profit? Do I have an exit plan?’ If the answer is no, I highly suggest you develop a plan immediately to realize profit while marketplace (MP) prices are soaring across Candy, VeVe, and others.
Regarding VeVe, full rollout of their Money Transfer License (MTL) will depress the market. Presently there is no way to withdraw gems from the VeVe app (1 gem = 1 USD). Once MTL — presently in beta testing — is available to all users, inevitably some individuals will sell their NFT holdings and withdraw their profit for real world uses.
For many of the individuals who have been in the VeVe app since early 2021, the profit they have amassed is in the thousands, if not hundreds of thousands. You can bet many of those individuals have a strategy developed where they will realize some of their gains. Once these individuals are allowed to withdraw funds, the MP will most likely follow the example set by similar MPs when withdrawals were allowed — the marketplace goes down.
It’s simple mathematics. Folks looking to sell their NFTs to realize gain will chase the floor lower to actualize those gains. Many newer folks to VeVe find the impending dip doubtful as they do not believe folks will chase the floor lower looking to sell. But let me share one example with you.
One of the members in the RadishNFT community is currently holding two Zombie Hunter Spider-Man #1 NFTs. One they purchased at 34.66 and one they purchased at 55.00. At present, the floor price for this NFT on the VeVe MP is 400.00.
Perhaps their strategy to lock in profit is to sell one of their Zombie Spider-Mans. Before they can do so, MTL is rolled out to all VeVe users. As long term holders start selling their NFT collectibles and comics, the prices start to move lower.
Not wanting to lose all the gains they have made, does the RadishNFT team member refuse to sell because it’s no longer at 400? Or do they accept 350 which is 6X their original cost? Or 300 which is 5X their original cost? See how easy it is for the floor on this one item to drop 25% without it materially affecting one owner’s mindset?
Of course the VeVe market now consists of millions of individuals so the mindset of one individual isn’t enough to move prices. But if others owners share this sentiment, it will move the price.
There is also the effect of new money flowing in from individuals who did not want to enter until MTL was in effect. But will buyers who are new to VeVe and new to owning NFTs in VeVe have diamond hands or paper hands as they see the price of the NFT they just bought for 400 dropping to 300 in a moment? (Paper hands are weak hands and sell easily based on any news or any downward pressure. Diamond hands are unbreakable and will hold an asset through ups and downs knowing the long term will provide rewards.)
Do I think the VeVe MP will tank? No, but I do see a dip coming that is related to MTL. Simply put, people want their VeVe Gems to work for them now so they are all invested in collectibles/comics EVEN if they need to withdraw a defined amount for profit/cover expenses/leverage other flips/et cetera. Many will sell those “working collectibles” and then withdraw those Gems to their real world bank (fiat).
My strategy is to actualize $5,000 in gems in VeVe prior to MTL going live. Once MTL is available, I will then withdraw those gems from the app and transfer to my bank account. I chose this amount of money as it represents the sum total of every dollar that has gone into VeVe since I joined in April 2021.
I accept that some of the items I sell will not only go up in value, they will go up multiples in value. It is possible I may let go of something that goes on to become the number one gainer at VeVe. Maybe not the latter, but I know the former not only can, but will happen.
Are you succeeding in an NFT project? It is important to remember we should never get stuck in the vicious mental cycle of never actualizing a profit.
Create a strategy.
Stick to it.
Don’t regret.
Agree with my outline for how to actualize gains in NFTs? Think I was 100% wrong? Join our discussion and share your thoughts in the RadishNFT community here https://discord.gg/a36895U8Gp.
Unfamiliar with Discord? It’s a community of over 150 million people from around the globe separated into smaller communities. In the RadishNFT community our goal is to help every member understand NFTs better and learn about the best opportunities in the NFT space.
- The RadishNFT Oracle
Disclaimer: We are not financial advisors and the information here is not financial advice.
