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Howdy, Shitcoiners! Now, normally, this is the part of the article where I’d spent a few paragraphs discussing what we’re talking about – but if you haven’t seen or heard about NFTs, you’re probably also not reading this article. And if you are, holy crap, Google or something.
So, we have this whole new asset class which is really just attaching media to an old asset class (tokens), but in new & exciting ways. And in ways that may or may not be as heavily policed as straight token or coin offerings – but this is not legal advice.
What are people doing with it? As it turns out, a lot. I’ll save the “new & exciting tech” news for another day, though, because today we’re going to discuss NFT Analytics & strategies. Basically, we’re going to take the scant bit of information that is offered about generative NFTs, and then show you a fun method of interacting with them that might provide some sort of edge.
While there are a few projects aiming to give you a decent NFT market overview, like NonFungible, so far as I’ve seen the only really useful one is Rarity Tools. This is mostly due to them having an extensive list of projects, as well as some handy search functionality. A lot of the other platforms just don’t cover enough of the market to get these early projects, and as a result more projects submit listings to Rarity Tools.
They let you search by price, but also by overall rarity score, and also by specific attributes. A lot of these values are available on OpenSea, but the searching & sorting ends up being a lot cleaner on RT. You also have the project overalls right in front of you, so if you’re searching for something middle-of-the-pack…
…you can look at the total NFTs (in this case, 7,777) and set the min & max rarity accordingly. Say, minimum rank 2,000 and maximum of 5,000, and then sort that by price – which should give you a decent overview of what you can get, and for how much. Then you just click the NFT’s name & it takes you straight to the OpenSea listing.
There are a lot of different search & sort options, and you should be tailoring this to your personal style & preference. Some folks like to sweep the floor, whereas some want the rarest. I tend to prefer a mix of floor NFTs & middle-of-the-pack ones, so I benefit from the floor rising, but don’t tie up quite so much on one NFT.
The first thing I’ve noticed that is hurting some folks is gas. Unavoidable, right? Yes, and no. Here are two quick strategies I’ve utilized to help with gas, recently.
LOWER YOUR GWEI – Unless you are competing for something where even a few seconds might make the difference between success & failure, you can probably use well lower than the recommended gas rate set by metamask & other wallets.
Right now, for instance, even a simple purchase on OpenSea is going to cost you nearly $100, at standard. Let’s see what we can do about that…
So, we’re looking at precisely .025 ETH for this transaction, up to a max of .034 – pretty insane, right? Go ahead and click that “Edit” button, though (in metamask). If metamask has been updated, you should see a real-time fee estimate, along with options for setting the “max priority fee”, etc.
We’re going to bypass all of that, though, and click “Show Recommendations”.
Go ahead and change it to “Low”, and check out the estimate. Guess what? It’s the same 30 seconds-ish that would have cost you some $30 more at the default fee rate. And if you want to scrape out a few more bucks, go ahead and drop the “max fee” another 5 or 10 gwei – but usually no more than that.
The thing is, Ethereum’s recent London upgrade, EIP-1559 changed the way that fees are handled. It used to be, lower fees meant that miners would ignore your transaction until there were none left with more fees. But, for better or worse, the recent upgrade means that if you’re above a minimum & there is room for your transaction in the next block, you’ll get through.
This can mean significant savings if you’re trading NFTs regularly, and especially right now when gas prices are so outrageous.
BULK-BUY IF POSSIBLE. I’m sure other platforms & projects have various versions of this, but NFT20 is the handiest I’ve seen.
There’s honestly a lot you can do with this platform, but one thing I’m going to get into today is bulk-buying. NFT20 allows users to deposit NFTs in return for an amount of tokens named for that collection. So MoonCats would generate 100 or so MCAT20 tokens.
What makes this useful is that users can buy & sell these on Uniswap, and farm liquidity. But that’s not what we’re here for. We’re here to bulk-buy.
I’m going to use the CyberKongz NFT pool as an example, here.
So, we want to click the “Uniswap” link next to where it says “Trade $KONGZ VX20”, and on the Uniswap Info page that comes up, we’ll look to the top-right and click “trade”. 100 tokens = 1 NFT, so putting in that for the number to purchase gets us a total of .068 ETH or so, right around the floor price for one of the NFTs.
But bulk-buying the token gives us access to the floor price, regardless of where it goes. Because 100 tokens = 1 NFT, even if the floor goes up. And there are only 100 tokens for every NFT in the pool, regardless, so you will always be able to exchange those 100 for an NFT.
But you can also buy more of the more liquid tokens, and then go back to NFT20 and flip the “swap” feature on the right so that we’re trading KONGZ VX20 for NFTs. That will allow you to bulk-buy as many NFTs as you can afford, selecting them & their quantity before purchasing using a single transaction, and paying gas only once.
I tested this by purchasing 27 of the CryptoGainz “RopeMakers” NFTs for cheap, and then listing at the floor price on OpenSea. There is also a fair bit of arbitrage possibility at NFT20, and some ways to figure out which NFTs in the pools are most sought after – but we’ll save that for next time.
Until next time, this has been Shitcoin Sherpa for Wendy’s Whitepaper.
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