In this episode, we learn from Keyboard Monkey, who has made 8 figures in profit with NFTs, actively investing on both buy and sell side.
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Show Notes
The Very Beginning
– KMonkey almost degened all of his money away pre-2020
– Was getting yelled at by risk managers at work
– Had $250k around the covid dumps in 2020
– Now is deep 8 figures
– Monkey is now “diversified”, meaning stocks, real estate, private equity, etc.
– KM: “I don’t wanna go to 0 again” lol me 2 m8
– Mostly traded stocks in 2020
Wen NFTs?
– Started really getting in in Feb 2021
– Started with Hashmasks
– KM: “I had a guy writing algorithms for me to find rarities, staying up all night to trade these things”
Trading NFTs
– Keyboard Monkey often will go all in then panic and dump all bags but it has worked so far lol
– Whenever Kmonkey panics new huge buyers come in, like recently he was selling and some Saudi Arabian fund came in and scooped a Fidenza for 1000 ETH
– *Cobie spots Fluf in KM’s portfolio*
– Ledger: “I’ll buy that”
– Monkey: “The ROIs you get on NFTs in such a short amount of time is really ridiculous”
– Trading is a blend of flipping and buying long term art that KM really likes
– Cobie: “If you mapped some of these on a chart they’d basically go straight up” lol very true
– Very good for momentum trades
– Kmonkey: “If you could short NFTs I’d be ruined”
How to Pick NFTs
– Ledger: “What makes them stand out? What makes them special?”
– KM: “If you look at a Fidenza, there are no shitty Fidenzas. Same with Penguins there are no shitty Penguins”
– KM: “It’s a narrative spiral mixed with good art mixed with who’s buying them”
– ‘dino pals’ selling for 6 figures!
– Cobie: “wtf are we doing hahaha”
NFT Betas
– KM: “You can look at mid tiers… when floor price is rising and the project is gaining traction, picking off mid tiers can be a great play, there’s a little alpha for ya”
Trading Style
– Cobie: “Is it fair to say you take a small loss that you punt right away, or you get a winner and let it ride to a homerun?”
– KM: “Absolutely, I kinda take losses like a death by 1,000 cuts but when I find a winning trade I pile in with size”
– Without diversification a blow up can obviously be devastating
NFTs Growing Crypto
– Ledger: “There are a lot of people who never clicked with crypto but now are all in on NFTs”
– Ledger: “We really underestimated NFTs power of collectibles to bring in normies”
– KM: “Cyclical booms definitely the next phase of NFTs”
– KM: “Can be a big hot potato game until bigger money comes in, which historically it has been”
Information Flow
– Have 3 screens open: Twitter, Telegram, Discord
– KM: “Its all just information coming in and keeping your ear to the ground”
– Cobie: “100% that’s a key for crypto”
*@RookieXBT just live bought the red dino… great speed sir
Turnkey NFT Trades
Art Side
– Wouldn’t buy a Fidenza
– Would go to Art Blocks (~50 ETH)
– Then Fuzy Squigles (~20 ETH)
– Then for a higher end piece, a Ringer
PFP side
– Bored Apes
– Pudgy Penguins
– Forgotten Runes
– Then the pedo rabits, FLUFs
– Hashmasks
Projects With Roadmaps
– Cobie: “I don’t like the roadmaps as much because with Penguins and Punks it’s like you know what you’re in for, with roadmaps you still gotta rely on team execution which has risk”
– KM: “I think you nailed it, short term roadmap is bullish but if they fall through on that its hyper bearish”
Question From Luke
– Luke: “What would you do for someone with less than 10 ETH?”
– Kmonkey: “Look for volume and liquidity in PFPs, wait for momentum then flip them into bigger projects”
– Minting typically won’t do as well
– FIND MOMENTUM TRADES IN PFP
– AKA Penguins, Bored Apes, Degen Apes (SOL)
Anything You Keep Forever?
– Kmonkey: “I keep saying yes and then someone pays astronomically for it”
– Cobie: “DC Investor (@iamDCinvestor) has never sold anything and his portfolio is around like 8 figures or 9 figures”
– Cobie: “They have a level of conviction I respect – similar to traders who try to flip every coin vs. investors who find long term value”
How To Value
– KM: “Typically price follows rarity, sometimes its a personal connection though”
– KM: “Looks like all of the punk buyers are guys sitting at their computers wearing hoodies” lolll great insight sir
NFTs on Other Chains
– Degen Apes on Solana
– PARIS HILTON JUST GOT A DEGEN APE
– *full disclosure I’m all in degen apes
– KM: “The other chains do offer the opportunity to be super early”
NFTs For People Who Hate Everything?
– Gaming stuff
– $AXS for example
– RARE and other NFT coins
COBIE GENIUS IDEA
– Cobie: “An NFT project called Noah’s Ark where there’s a male and female of each animal and like 10,000 total”
– Ledger: “It’s like FLUFs breeding” lol ledger!
FINAL ALPHA
– Keyboard Monkey: “Be patient. Once you find the project, ape first and ask questions later”
Notes by Kevin
Music by GiovanniPickle