Since my last post on NFT’s (an introduction to what they are), this space has gotten even more crazier and wild. When I did that post a month ago, the overall sector (NFT projects based on data from Coingecko) has grown from a market capitalization (size) of $2.9 billion to $7.6 billion currently.
Firstly some thoughts, reiterating some points I made in my previous post:
- The space is seeing some insane amount of euphoria. This can have both good and bad repercussions. Good, because projects can return crazy gains as anyone and everyone wants to jump in on opportunities within the space. Bad, because this can attract loads of scammy projects (looking to ride the euphoria and take advantage of the naive). Just to give you an idea.
Anyways the current euphoria can be gauged from this news: A guy in New York has sold a recording of his farts over the last year as an NFT and it is attracting bids. If you’re curious or interested, go have a listen.
- The craze is bound to end or settle down at some point in time and scores of projects will be badly hit. Have a look at what happened with the ICO market of 2017-18 to get an idea on that.
- If you’re starting off in crypto, stay away from this space. There’s a lot many other projects you can participate in.
- As always put in an amount you are willing to lose
If that’s not scared you, then please proceed to the rest of this post. I personally have a position in just one of these recommended coins and that’s because I am already invested in other projects and there’s just so much I want to be in or can afford. These projects are something I’m keeping a watch on and will jump around in probably based on how they play out.
In selecting these projects, here’s what I’ve taken into account:
- An open team. I personally like it when a team is visible rather than staying anonymous. Some background of the team helps in deciding the credibility of a project.
- The community
- What it actually does
- Smaller size (I’m looking at market caps of under $50 million). To give you a perspective, the space is dominated by Enjin Coin which currently has a market cap of $2.14 billion.
So here goes,
1. Chain Guardian (CGG)
- Currently a $30 million market cap project. A very new listing – so maybe – look for dips coz I believe the private sale price was $0.12. So, at the current price of $3.2, that’s already a near 26X for the guys who entered then. So there’s going to possibly be sales coming in.
- What they do: In their own words, “Within the ChainGuardians ecosystem, players can participate in our free-to-play NFT Mining platform and Role-Playing Game; both of which allow players to earn income, turning your time and energy into tangible rewards”.
- The team seems experienced. You can check them out here. There’s also some decent backers.
- A working product, which is always good. Their roadmap seems to have listed a bunch of developments planned.
2. GameCredits (GAME)
- Personally missed entering this last week and it has done a crazy run since. Caught my eye when I was looking at this space and looked at projects which are way off their ATH (all-time high). This still is.
- While it’s done a 200% rise over the last week, the price is nowhere close to its ATH of $6.67 (Jan 2018). So the current market cap at $23 million
- What they do: In their own words, “GAME Credits is a platform for game developers to deliver blockchain in-game items within their games, with only a simple API call. The GAME Credits RESTful API Suite allows the simple creation of NFT’s, Secure Asset Exchange, Engaging Rewards Delivery, a Fair Tournament Gaming System and more”.
- This project has been there a while, which is always a good thing. Listed somewhere in 2014.
- Seems like a fairly strong and experienced team, & advisors.
3. CROWNS (CWS)
- Project name is SeaScape Network
- What I like about them is their marketing. They are vocal of what they are doing and active about it. Check their Medium.
- I couldn’t see the exact Linkedin profiles of the team. But the whitepaper and website describe the team as one with three established offices located in Shanghai, Singapore and Estonia. Management has experience in companies including: Ubisoft, EA, Paradox.
- The CWS token is used to reward users within the network for purchasing game services, creating PCC (player-created coins), and trading Seascape NFTs.
- Got a bunch of games, integrations lined up
- Backed by Binance (so a listing might be possible at some stage), among some other venture capital and investment firms
- Currently, at $40, it has a $32 million market cap. It’s been higher. Has an ATH of $61. Definitely seems like a play that has scope to move.
4. Portion (PRT)
- This is a marketplace for NFT art and collectibles. Obviously if the space of NFTs continues to grow, enablers like marketplaces are bound to see activity.
- The listed marketplace space is dominated by some platforms. RARI is one with a market cap of $91 million. Currently, Portion stands at an $18 million market cap.
- Portion is a platform and marketplace for digital and physical art and collectibles. Besides being a marketplace, it has two more business divisions:
– Enterprise partnerships: Portion licenses its proprietary blockchain infrastructure to businesses in the art, collectibles, and luxury industries
– Financial Services: Portion’s users may collateralize authentic art and collectibles to receive secured loans. Portion may also offer loans to sellers as an advance on a sale, to individuals who have authenticated goods
- A Version 3 frontend is expected to be released soon (31st March)
- Again, seems like an experienced team and set of advisors.
5. Ovr (OVR)
- Operates in a different space – AR (Augmented Reality). A niche space
- Offers a platform offering collectibles, which allows one to go buy land (virtual real estate). I think of this as something like SimCity – just that you own that land, you can then enrich your land with some AR experiences the platform offers, hoping that increases the value of your land going ahead.
- Diverse and big team with some very well experienced advisors
- Currently trading at its high ($1.51) and at a market cap of $31 million. Guess could do well with some marketing and going to town with the AR aspect of the project.
So that was it. To reiterate,
- Some of these have already done crazy runs. Please do not just jump into projects blindly. Do your own research. Use some technicals to identify entry and exit points.
- This space is seeing euphoria. So play it accordingly. This would fall under a High-Risk category.
- If there are other names you like in this space, do drop in a comment down below.
- Take profits wherever you can. Ensure your capital is safe
- If you’re new to crypto, my suggestion is to stay away from this space. It’s your choice of course. I’d suggest you stick to something (projects) from the top rung of coins.