I do wonder how SoftBank investing $680M into SoRare at the height of the NFT boom is going to work out. If SoRareStats is correct, they did 170Eth of auction volume in 24 hours. If they have the same fees as OpenSea, that’s roughly $8,000 in daily revenue.
Yep. OpenSea, too, raised funding at 13B valuation right at the peak of the NFT mania
I don’t understand how VCs work. I was deep in the NFT world at that time and outside of the influencers on Twitter, every single trader I know was just in it to dump NFTs on someone else. And everyone knew that it wasn’t sustainable at all.
How can VCs look at something like this, abandon all common sense and buy in right at the top of a mania phase?
Yeah I've thought about this a lot too. My only guess is that these VCs never really felt the pain from the previous cycle collapses.
I made and subsequently lost a very large sum of money from 2015 to 2018. This happened because I bought into the ICO craze and after seeing 1000x gains I saw almost all of it evaporate. So to me, NFTs reeked of the same odor.
I was smart enough this cycle to stick with projects that made sense to me. NFTs didn't make sense, and even though I saw people making money on them, I knew the risk was too high. I think another learning point for me was letting go of romanticizing crypto as a technology and embracing it for what it truly is, which is gambling.
I don't think crypto is the future of anything other than online gambling and speculation. Which isn't necessarily a bad thing, but it's the reality.
VCs seem stuck in that romantic phase coupled with a lack of technical understanding. I think after they get burned this cycle they'll be less likely to invest in the next. They'll have the experience to know.
In hindsight, that May 2021 was a good thing. Taught me how much these coins can collapse. I did much better at securing profits in the second half of this run
Its a total scam in bear markets
That’s pretty much the sentiment across the board
I do wonder how SoftBank investing $680M into SoRare at the height of the NFT boom is going to work out. If SoRareStats is correct, they did 170Eth of auction volume in 24 hours. If they have the same fees as OpenSea, that’s roughly $8,000 in daily revenue.