Rare Club Nifty Newsletter #12
Are NFTs 'big techs' trojan horse as FB, Instagram and Twitter scramble to verify you?
Welcome to the ‘Rare Club Nifty Newsletter’, a curated snapshot of what matters most. We provide informative and easily digestible content about the NFT space, with one publication a week. Subscribe for free at the bottom of the article.
Includes NFT news, info on trending narratives, educational info, tips, projects to watch, occasional deep dives and more.
HEADLINER - ‘Twitter integrates profile picture NFT verification for certain users, with Facebook and Instagram not far behind’
It seems as though the tech giants agree NFTs are no passing fad as the social media goliaths look to integrate them into their platforms. But is there more to it?
Twitter has already front-run its competitors by allowing certain members of its Twitter Blue subscription service the opportunity to verify their NFT profile pictures. Those who do so will have a readily-identifiable hexagonal boarder on their PFP, confirming they legitimately own the image shown within it.
This kind of integration, on the face of things, seems like a harmless acceptance of the cultural relevance of NFTs. But a more sinister take is that it’s the beginning of further incursions into people’s privacy. How so? Let’s take a look.
As soon as you verify your NFT on Twitter, the company will automatically have your personal wallet address. This means they will have access to all the information within that wallet, as well as any wallets associated with it. Result: privacy gone, tech giants embedded.
Therefore, the seemingly innocent act of verifying your NFT actually facilitates big tech in tracking all of your financial behaviour on the blockchain. And if history has taught us anything, we can rest assured that they will collect that data, and it will be used to their benefit.
The mind boggles at how powerful this data can be, enabling these huge companies to exert further control over the unsuspecting user. You are literally giving away unfiltered access to all your financial records.
There are some ways to circumvent this if a user really wanted to, but for the vast majority of people, it won’t even cross their mind to do so.
If every FB, Instagram and Twitter user willingly connects big tech to their personal wallet, it will mean well over a third of the global population have signed up to have their blockchain behaviour tracked, indefinitely. So much for decentralisation.
This is merely a warning, to raise awareness. Be mindful of the dots you’re connecting, and the personal data you’re handing over when you click to verify your profile picture. It may warrant a moments consideration.
I simply encourage people to keep an open mind and question things. Maybe some people are OK with having their data collected, and their UX manipulated. I certainly use platforms where i know it’s at play.
My main concern with this particular verification process is that people new to the crypto environment may not be aware of its implications. I hope this serves to inform them.
For a more detailed look at the Twitter news story, please click here.
For a summary of FB and Instagrams plans, please click here.
BUZZFEED - Curated news and hot topics
Neymar purchases 2 Bored Apes at a total valuation of $1.12mill US
@ParallelNFT Prime Proposal dropped today - Click here for link
Facebook owner Meta dives into NFT digital collectibles craze
TALKING POINT - ‘NFT ownership in a bearish market’
We saw some of the largest sales volumes the NFT space has ever seen in the first few weeks of January. Everything was rosy and there was a real buzz about the markets. Lots of projects were mooning hard.
Now, 26 days into the year, Ethereum has slumped 30% in FIAT value, and we’re left wondering what will become of all those NFTs we just aped into.
Well, here’s some observations and thoughts on the topic. Take what you need, disregard the rest.
If you’re long ETH and have conviction in your NFT projects, there’s simply no need to worry. Time will solve your short-term pain.
If you don’t have conviction in your NFT projects, you need to re-think your buying strategy. (We’ve discussed buying in several previous newsletters and will continue to do so moving forward)
The most prominent NFT collections have largely retained their ETH value. This will also be the case when the market moves in the other direction.
Some collections have seen their floor prices drop, but this has not been by drastic amounts (with a few exceptions), and is just a flushing out of the paper hands.
Further NFT integration into the biggest social media platforms in the world will only serve to bring in more participants. Fixed supplies plus increased demand equals asset appreciation. Your value in ETH should increase.
This is an excellent buying opportunity, all considered, especially if you believe in ETH. ETH is at around 55% of its ATH, so collections are on a nice discount.
Smart money buys in bear markets, and the biggest gains are realised from these purchases.
If you’re not liquid, spend the time to educate yourself and plan your next moves. Don’t sit idly watching your FIAT value fluctuate.
When investing in NFTs there must be a certain belief in the underlying currency you’re transacting in. For me, and most people in NFTs, that is currently Ethereum.
NFTs are like a leveraged ETH play to some degree. You are betting both on ETH itself, and the NFT collection you’re buying. If either one performs badly, it can affect your overall return in FIAT value. But if both perform well, it can have an amplification effect which provides excellent results.
I can stomach these bearish crypto market moves because of two things:
I have long-term conviction in Ethereum
I have long-term conviction in my NFT collections
If you can say the same thing, these “blips” should be of no major concern. It doesn’t mean I enjoy these periods of downturn, but it certainly makes them more bearable.
Having analyzed my past behaviours and decisions, I have been able to rework my strategy to better position myself this time around.
If you’re finding yourself in an uncomfortable position, I strongly advise taking the time to pick apart what led you there, and how you can adjust your strategy for the future so as not to come unstuck again. This is invaluable. I’ve learnt more from mistakes than successes, but to really benefit you need to pause, zoom out, assess and rethink.
BIG MOVERS - Collections with impressive stats from the past week
Azuki - These guys still top the charts a week later. Now revealed, the community seem happy and sales have not slowed. Quite the opposite. Congrats to the team. Project tagline: Brand for the metaverse. By the community.
HAPE - Yet another Ape-derivative NFT storms the charts, with a huge floor price of up to 8ETH, unrevealed. Currently sat 2nd on weekly sales volumes.
Creepz Genesis - This collection has seen an incredible increase in its floor price, moving from around 0.8 ETH to roughly 7.9 ETH in less than a week. P2E, staking and a free 3D NFT are all holder perks that seem to be sending this collections price parabolic.
V1 Cryptopunks Wrapped - A new entry into the charts, this is the resurrected original CryptoPunks contract, with a new wrapper. Early signs seem to suggest a healthy interest in this historically significant collection. Floor is around 6.5 ETH.
Cool Monkes Genesis - Up over 700% in the past week, and sat at No.18 in the charts, this fun collection is showing some early promise. Floor price of around 0.87 ETH.
THE WATCHLIST - Projects we believe have long-term potential. DYOR
Mutant Ape Yacht Club (same as above, extension of BAYC, well established)
Meebits (same team as CryptoPunks, mass appeal, early 3D avatars)
Cool Cats NFT (very strong community, respected collection, mass appeal)
Lost Poets (created by famous artist ‘Pak’, strong community)
Parallel Alpha (gaming, TCG, strong team, incredible backers, big ambitions)
My Curio Cards (historical significance, early ETH NFT)
Prime Ape Planet (outstanding artwork, experienced team, good roadmap)
CryptoMories (unique artwork, good community, lowish entry price)
DeadFellaz (very strong community, established)
World Of Women (celebrity endorsed, one of 1st female avatar collections)
TIP OF THE WEEK - Avoid the OpenSea & Rarible Listing Exploit
Many collectors have seen their NFTs sold for well below floor price due an exploit of listings on OpenSea and Rarible.
In short, if you’ve ever performed these few steps, you may be at risk:
Listed an NFT for sale
Decided against selling the NFT and moved it to another wallet
Did not cancel the original listing
Returned the NFT to the original wallet again at a later date
If you’ve ever taken the above steps, the NFT will automatically be re-listed upon returning it to the original wallet. This could be months later when the collection has a dramatically different floor price. You may be completely unaware it’s for sale, and then…it’s gone.
For a full rundown take a look at Metaverse HQ’s Twitter thread by clicking here.
RARE.NEWS - Updates regarding the Rare.club NFT DAO fund:
This coming month will be big for Rare Club. Watch this space!
Discord is set up and you’re welcome to join
New website and logo to go live in February
Next fundraise will happen in Feb 2022 (market conditions permitting)
Two projects lined up for incubation: a Solana project and a launchpad
Links to our socials and website coming soon,
Thanks for reading, and see you next time
Always DYOR (do your own research). Nothing in this or any other article in this series should be construed as financial or investment advice. We do our very best to provide useful information for our readers. What you do with that information is up to you.
Remember to exercise caution within the NFT space. The community is full of amazing people, but there are unscrupulous ones too. Keep your wits about you, and act responsibly. As always, good luck.