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My NFT Journey – Ep.3: Diamond Hand

8 min read

Read the Ep.1 – FOMO
Read the Ep.2 – HOLD

If you minted Bored Ape Yacht Club (BAYC) one year ago and held it, its value today would be at least 75eth (around $200,000).

If you minted Genesis CyberKongz at 0.01eth one year ago and held it, today it would be worth 78eth, or around $214,000.

There are many terms in the investment world. Two of them are “Diamond Hand” and “Paper Hand”.

A Diamond Hand is a group of people who buy an asset and hold it for a long time. If the price goes up or down, or there’s a crisis, they won’t sell it.

They’ll just wait for its value to become a diamond, just as if you bought and held BAYC or CyberKongz.

A Paper Hand is the opposite. It refers to people that buy and sell an asset very early. They might sell it at a profit or a loss because they don’t want to incur risk.

There are also some people who sold BAYC and CyberKongz too early at 1-2eth and suffered as they watched its price increase non-stop…

When I invest in the stock market, I’m a Diamond Hand. I invest in a private fund and let its people manage the assets for me.

I rarely do anything in my portfolio. I just wait for it to grow.

My job is just to make more money and keep adding to the private fund regularly.

In the NFT world, I do the same thing.

But the question is, is every project worth holding on to for a long time?

After I spent some ETH to buy Woodie, I looked for other projects to invest in.

Alex Becker uploaded a new video in which he shared his method for choosing NFT projects to invest in.

He said that a project should have a good community, good utilities, or a new technology.

Back then, I didn’t understand much of what he was saying, especially about the utilities.

What can the utilities of JPEGs do?

I had no idea at the time.

But he mentioned some project names, which the newbies like me were very interested in.

Just tell me what to buy, bruhhh!

He mentioned a project called Moody Krows. It’s the first PFP project on the Immutable X (IMX) platform, which is the first NFT Layer 2 marketplace on Ethereum.

I didn’t know what Layer 2 was. I just understood that people can buy NFTs here with a lower gas fee than on OpenSea.

Gas fees are payments made by users to compensate for the computing energy required to process and validate transactions on the Ethereum blockchain.

Investopedia

If I’m not mistaken, TikTok will launch the project on IMX at the same time.

I jotted down Moody Krows on my list.

Another project Alex mentioned was MekaVerse. It’s an NFT project which was being highly hyped at the time. The character in this project is just like Gundam.

There were over 200k people in MekaVerse’s discord at the time. I remembered that people said MekaVerse would be the project that caused a high-priced gas war.

When many transactions happen at the same time, it causes gas fees to rise. If the project is very famous, tons of people will try to mint it at the same time, which results in higher gas fees.

After watching this video, I talked to my friend about the projects that Alex had mentioned. My friend and I decided to mint Moody Krows.

We did a little research on the project and found the roadmap to be quite interesting. Anyone who holds two krows can get one baby krow in the future.

I didn’t know how two JPEGs can have a baby. I was intrigued!

I checked out the project mint date and time, the number of Krows we could mint, and the price of the NFT.

People could mint 5 Krows per wallet. The price of each krow was 0.055eth (which is very cheap compared to other NFT projects nowadays).

This was the first time I minted an NFT project. It was on Immutable X, which was new at the time as well. There was not much info on it to read.

I was excited and read the instructions in the Moody Krows discord many times. I wanted to make sure I would follow the instructions correctly.

Beep Boop! – My phone reminded me that there were 5 minutes left before the launch time.

When the launch time arrived, I refreshed the page and minted 5 Moody Krows immediately.

The transaction went through successfully!

Another Max Minter was born in the NFT world!

I checked the discord again. Ten thousand Moody Krows had sold out in less than 2 minutes.

Damn…that was freaking fast compared to my Print-on-Demand sales!

There were some people who successfully made the payment but didn’t get Moody Krows in their wallets.

I checked mine. I didn’t get them, either.

The developer of the project said a glitch might have caused the slow delivery of the krows to wallets.

Imperfection is pretty standard in the NFT world. IMX was very new and there were some bugs in it.

So, I just waited.

While I was waiting, my friend told me he’d just sold one of his krows for 0.5eth. That was around 10x more than his initial investment.

In theory, selling this early qualifies as a “paper hand” transaction – but 10x is a really good profit.

Usually, an NFT project won’t reveal the NFT image immediately after people mint it. They’ll get the same un-revealed images and discover what image they got later.

I asked my friend, “Why don’t you wait for the reveal? You might get the rare one and the price might be higher than 0.5eth.”

 “It’s better to protect your investment first. I flipped one, and still hold four. The price might be lower after the reveal as well.”

That was new knowledge for me.

I thought that if we held and waited for the reveal, we might get the rare ones and sell them at a much higher price.

The truth is, it’s VERY difficult to get the rare NFTs.

It’s also better to sell before the reveal because people like to take a chance.

But the thing is, I hadn’t received my NFTs yet, so I couldn’t flip them.

I had to wait for 4-5 days. I got them after they were all revealed.

There were 5 Moody Krows in my Immutable X account. Luckily, one of them had a cheetah skin and looked very rare.

I started to list three of them that didn’t look rare at 0.85eth each. (If I could have sold them before the reveal, I could have sold them for over 1eth each.)

I thought I’d hold at least two krows because they were needed to breed the baby krow, and this project’s dev team looked great.

After I listed them, I went to have something to eat and read the NFT news on Twitter.

A few hours later, I returned to my Immutable X account and found 2.55eth in it. Also, three krows had disappeared from my IMX account.

OMG! I’d just made over $7,500 from three JPEGs!

I was very happy with the results.

Anyway, in the Moody Krows discord, people were very excited about the project and planned to hold their krows for the long haul.

Many of them shamed the people who’d sold their krows early.

Someone said:

“CryptoPunks was the first PFP project on OpenSea. Moody Krows is the first PFP project on Immutable X. We are no different.”

“F*ck the Paper hands! They’re gonna cry when we moon.”

“Paper hands are stupid 90% of the time.”

“I’ll hold Moody Krows for life.”

I picked up the vibes and thought I’d do the same with the two krows I had left.

I thought it would be better to have the rarer krows in my collection. I had one krow with cheetah skin, so I thought I’d get another cheetah krow.

“My baby krow would have cheetah skin as well if his mom and dad were cheetah krows,” I thought.

So, I browsed the Moody Krows collections and picked one cheetah krow for 1.5eth (around $4,500 at the time).

When you make 2.55eth quickly, you’ll be able to spend it quickly as well. 😅

In the next few days, I flipped another non-rare krow at 0.64eth (the price decreased after the launch).

So, my total profit from the Moody Krows collection was around 2.55+0.64-1.5-0.275 (mint cost) = 1.417eth.

If I’d sold all of them on the first day, I could have made 4-5eth in profit.

But I didn’t do that 🤣

The worst part is that I’m still holding those cheetah krows.

The value of each krow is around 0.024eth, and the baby krow’s value is just around 0.006.

sheeeeeese…..

That’s 40-50x down from its peak!

Fun Fact 1: My baby krow doesn’t have cheetah skin like his mom and dad. He’s just a common one!

Fun Fact 2: I still have these krows in my IMX account. I’m a stupid Diamond Hand!

Looking back, it was funny to think about the people who’d shamed the Paper Hands.

This is what I learned: “In the NFT world, not all projects are worth holding for a long time.”

Actually, only a few projects will reach the price of BAYC or Genesis CyberKongz.

If you can flip any NFT for a profit, do it.

Don’t listen to the Diamond Hands in the Discord too much.

Do your research on your project. If the team’s roadmap can’t be executed in the next few months, flip it for some profit first.

When the team proves they can deliver what they plan in the roadmap, you can get back in later if the price hasn’t increased too much.

If the price does increase too much, there will be tons of other NFT projects for you to flip and make more money with.

NFT is just getting started, so there will be a lot more opportunities.

Okay, my krows experiment taught me a lot about flipping and taking profits.

But how could I find other projects like Moody Krows to make profits again?

—ifourth | Nifty Nuggets #446

P.S. Talking about the MekaVerse … I didn’t get whitelisted to mint this project. They did a raffle and some lucky people got whitelisted.

The mint price for MekaVerse was 0.2eth, and each person could mint up to 2 pieces.

The price on the secondary market heated up to 10eth very quickly after they sold out.

Well, that was 50x higher than the mint price. People thought it would become blue chip and hit the price of CryptoPunk.

Whoever minted two and flipped them could have made 20eth very quickly.

Some Diamond Hands didn’t flip it, and some people even bought it on the secondary market at 8-10eth. That’s very expensive!

Unfortunately, when the project revealed the Meka they got, the floor price dropped to just around 1eth.

Now, the floor price of MekaVerse is around 0.755eth.

The Paper Hands won again.

And the Diamond Hands…? 🥶🥶🥶

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