Skip to main content

Only every fourth NFT makes a profit - but you can still benefit



Starting an NFT project is a risk because just a little more than one in four freshly minted tokens makes a profit, while more than 65 percent of NFTs make profits in the secondary markets.

Data from the NFT marketplace Opensea show that only 28.5 percent of freshly minted NFTs ( non-fungible tokens ) are sold for a profit. This fits in with a new report by the blockchain analysts at Chainalysis, who also come to the conclusion that NFTs are not a license to print money.

Whitelisting as a vital strategy for success

Rather, it is almost impossible for investors to generate disproportionate profits with newly minted NFTs without being on the whitelist, according to Chainalysis in its latest NFT market report, which the company published on Tuesday. Whitelisting is thus proving to be a veritable strategy for NFT enthusiasts.

As Chainalysis found from Opensea data, investors who are whitelisted achieve dramatically better returns than those who later bought the same NFTs in the secondary markets. Whitelist buyers then achieved a profit in 75.7 percent of the cases, while the unlisted buyers were only successful in 20.8 percent of the cases.

Whitelisting is a marketing strategy that new NFT projects like to use to increase interest in their collections. As a rule, a selected group of early and committed fans is offered the purchase of the NFTs at a significantly lower price than other users during the imprinting phase - i.e. while the digital files are being converted into NFTs on the blockchain. Those who make it onto the whitelists have usually shown themselves to be particularly active followers and, for example, contributed to the project's Discord servers or advertised the collections on Twitter.

"The data is clear," said Chainalysis, "whitelisting is a significant financial reward for those who play a role in the success of an NFT project by promoting its early community growth." Overall, 78 percent lost the non-whitelisted buyers received more than half of their original investment in reselling the NFTs. On the other hand, 78 percent of whitelisted members benefited from reselling, doubling their initial investment more than half of the time.

NFT flipping

Chainalysis data also shows that high activity in NFT trading pays off massively. In secondary trading in NFTs, 85 percent of profits were made by the group of investors who made the most sales.

The important finding: The most successful NFT investors do not have a significantly higher hit rate than others. They just flipped significantly more NFTs and achieved a higher average price per trade thanks to their whitelisting advantage. Overall, however, the hit rate was similar to that of the less successful group.

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
Upland - Collect Digital Properties & Test Your Skills
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

From offchain to offchain: Statechains meets Lightning

  Without a doubt, the most significant off-chain Bitcoin solution is the Lightning network. But in its wake, the statechain has emerged as an intriguing replacement. There is currently a proposal to link the two offchain networks. From an ocean, for example, you can see sunbeams glistening in the water, waves rippling, and possibly a jellyfish drifting toward the light. But you only see a small portion of it. The distance from the sea's surface to its bottom is hundreds of meters. It has dozens of different fish species swimming in it, crabs and starfish crawling on the bottom, shells clinging to rocks, and sea plants climbing up. A completely new world starts where your gaze diverges. You can picture a blockchain like Bitcoin, just like the sea. What you see on the outside is only a small portion of what is actually there; the set of UTXOs (coins) and transaction history that full nodes store are just the beginning of a much larger world. It's the plan, at least. With Bitcoin
Post a Comment
Read more

MSP Recovery and Tokenology aim to optimize healthcare with the help of Polygon

  MSP Recovery LLC, a Miami, US-based healthcare provider with an estimated enterprise value of $32.6 billion, is partnering with Web3 company Tokenology to jointly launch a new blockchain platform called Lifechain. Lifechain wants to leverage the verifiable and transparent nature of blockchain technology to aggregate medical care claims, medical expense reports and patient data and streamline their processing. For this purpose, MSP Recovery launched its own LifeWallet in January, which already has 1 million users. In addition to the wallet and blockchain platform, an associated crypto token called LifeCoin is also used. The press release explains that the primary purpose of the system is to enable secondary healthcare providers to more effectively bill health insurance companies for their costs. “The number of medical claims tokenized going forward will surpass $50 million per day by 2024. For this we need scalability, security and sustainability, which we have only found with Polygon
Post a Comment
Read more

Phishing attack on popular crypto sites tries to empty wallets

  Several major crypto sites such as Etherscan, CoinGecko, DeFi Pulse, and others report malicious pop-ups scammers use to try to trick users into connecting their MetaMask wallets. The phishing attack came from a domain displaying the Bored Ape Yacht Club (BAYC) logo. "We are investigating the root cause of this attack to fix the threat as soon as possible," CoinGecko founder Bobby Ong tweeted. The phishing attack appears to have been triggered by a malicious ad script from Coinzilla, a crypto ad network, according to CoinGecko. Etherscan also advises its users not to confirm any transactions that may appear on the website. The attackers attempted to use the hype around the “bored monkeys” non-fungible tokens (NFT) to gain access to the cryptocurrencies of unsuspecting website visitors. Although the websites affected by the scam attempt have reacted in the last few hours and deactivated the advertising pop-up, it is still recommended not to connect your MetaMask wallet to ne
Post a Comment
Read more