Tonight’s the big night: the Attentive Ape Yacht Club Event.

Fear and Loathing in NYC


It’s 87 degrees, and I’m near the front of a line dense with newly minted millionaires, influencers, and hypebeasts that stretches twelve blocks uptown. I’m currently 12th from the door, standing behind a rather short 20-something wearing clinically-white Air Jordans, Louis Vuitton sweatpants, and an AAYC muscle tee --- which 20-something is holding his phone up at shoulder height, taking selfies for his camera roll while simultaneously hosting an impromptu Twitch stream on the basics of ‘day-trading’, but which basically amounts to him repeating the axiom: ‘don’t get married to a trade, bro.’

I’d be lying if I didn’t admit that I am nervous. Or perhaps it's not exactly nervousness — I remember reading in some pop-psychology book that anxiety and excitement are neurologically, near-identical states — so maybe it's less an issue of emotion as it is an issue of framing the emotion. After all, logically, I have every reason to be excited for this event: Attentive Ape holders have waited months and suffered through unending floor price volatility to make it to this sacred IRL night. And plus, all week the AAYC team has been cryptically teasing the release of new merchandise — last night, the official AAYC account posting pictures of pill containers and clips of Bradley Cooper from the movie ‘Limitless’, leading many to speculate that AAYC will soon be dropping their own line of nootropic stimulants dubbed ‘Degen Doses’.

As we inch up towards the entrance to Attentive Ape Fest, I pull out my phone, double-check that I’ve got my e-ticket locked n’ loaded, and then do a few flicks through Twitter to see if I’ve missed any alpha leaks. There’s no announcements, but I do have three new bots following my alt account. Also, a quick scan of the the ‘explore page’ reveals that a new term called ‘Web 6’ is currently trending with 629 tweets; but said discovery ultimately sends me sliding into a discomposed mindset wherein I’m progressively worrying about the fact that I’ve missed the memetic boat for this new CT term, and so now 6th in line, my whole emotional-frame starts shaking as I find myself overwhelmed by the urge to blindly tweet something out about ‘Web 6’ — not necessarily for engagement, but more so out of a blanket fear that if I do not say anything, if I do not simply raise my proverbial hand and shout ‘here’, that somehow I will be marked absent in the trend — it is both a gross and desperate feeling, a feeling where my fighting the feeling only intensifies the grossness and causes me to drip even more full, warm beads of sweat into the armpit canopy of the fleece-lined AAYC sweatshirt that I and many others in this line have unfortunately elected to wear today.

Out of pure desperation, I repeat to myself very quietly, like a Tibetan monk cycling through his list of mantras, _I am my ape, and my ape is me_.

————————————————————

_This is a work of fiction. Names, characters, places and incidents either are products of the author’s imagination or are used fictitiously. Any resemblance to actual events or locales or persons, living or dead, is entirely coincidental._


Chimpers seems to be a collection pacing themselves for the distance.

Chimpers: It’s A Marathon, Not A Sprint


Chimpers is all about pace, mystery, and unraveling.

Before there was ever Chimpers, first there was [The Boring Ape Chronicles](https://theboringapechronicles.com), also known as TBAC, a Bored Apes derivative project that entailed extensive lore and a six-episode series sold as NFTs. Don’t get too hung up on their use of the word ‘episode’ — these ‘episode’ NFTs are more like symbolic gif art that relate back to TBAC lore, (lore that we’ll try not to spoil for you, but which assuredly contains layers of colorful drama as it details the bored apes’ collective search for the sacred ‘Diamond Fleece’.)

Like Chimpers, TBAC is the brainchild of artist [Timpers](https://twitter.com/TimpersHD) and writer [Insight](https://twitter.com/NFT1nsight) — who are in fact twin brothers, both with healthy experience in the NFT space (Timpers having created for/helped big names like RTFKT, Interleave, and [NOUNS](https://flip.xyz/art/collections/nouns/summary) DAO; and Insight having written for names like Decrypt, Cointelegraph, and 137 PM.)

Back to the mystery and pacing — eventually, with the help of animation director and designer [Jardine Sange](https://twitter.com/jardinesage), TBAC’s six episodic artworks came together in an animated production that was sold as an NFT. While we understand not everyone will get through reading the comprehensive lore for TBAC, we’d highly recommend watching the [animated production](https://flip.xyz/art/collections/tbac/explore/9) (it's only a couple minutes, and it gives an encapsulating taste for their broader multimedia vision.)

![TBAC Ape Image](https://flip-blog-images.s3.amazonaws.com/Chimpers_+It%E2%80%99s+Marathon%2C+Not+A+Sprint_Img1.png 'Credit: TBAC')

Following the TBAC animated production, it’d be tempting to think that was the grand finale for the project, but no, the reality is the team was merely unfolding one more layer of a continuous reveal. Along with the animated production, holders of the ‘full-set’ (all six episodes) were also airdropped their very own [Diamond Fleece NFT](https://flip.xyz/art/collections/tbac/explore/7) (which could later be burned in exchange for a [Genesis Chimp](https://flip.xyz/art/collections/chimpersgenesis/summary) (now at ~24 Eth Floor)), some mysterious [Diamond Dust](https://flip.xyz/art/collections/tbac/explore/8) (now at 8 Eth), and a collectors [ebook](https://theboringapechronicles.com/ebook/#page/1) NFT that pointed to 60+ pages worth of Inspect and Timpers high-octane imagination.

![TBAC Ape Awakening](https://flip-blog-images.s3.amazonaws.com/Chimpers_+It%E2%80%99s+Marathon%2C+Not+A+Sprint_Img2.png 'Credit: TBAC')

Like we said earlier, we don’t want to spoil it for you, but let's just say, if you got through all sixty pages of Inspect’s impressive literary jaunt, you’d have known that even more was coming . . .

And sure enough, on April 26th, a missing page from the TBAC ebook revealed that owning a TBAC Series 1 asset granted a pass to mint Chimpers, a collection which at that time had only been hinted at once through a teaser image on Twitter.

Within a month, 5555 Chimpers hit the market hit, building upon Chimpers Genesis, expanding TBAC community, and giving the broader ecosystem a chance to take part in the chimpverse.

![Flip Chimpers Listings](https://flip-blog-images.s3.amazonaws.com/Chimpers_+It%E2%80%99s+Marathon%2C+Not+A+Sprint_Img3.png 'Credit: Chimpers')

We’ve perused the Chimpers’ various pixel-art designs and we’ve got to say they’re unquestionably diverse — you can scroll for ages without coming across a seemingly repetitive combination. But also, Chimpers seem ideologically catchy and genre-blending — very much a throwback to Timpers’ upbringing of watching classic anime films and playing retro pixel-based games like Pokemon.

Perhaps the Chimpers hit a perfectly nostalgic nerve — since their release, Chimpers Discord has amassed 45k members, the collection has racked up over 9.4k Eth total volume traded, over 600 people have made their Twitter pfp a Chimper (according to [NFTinspect](https://www.nftinspect.xyz/collections/0x80336ad7a747236ef41f47ed2c7641828a480baa),) and the floor price has held steady around 2 Eth (although, looking at the chart it sure feels like price wants to move elsewhere, whether that be up or down.)

![Flip Chimpers Pricing Chart](https://flip-blog-images.s3.amazonaws.com/Chimpers_+It%E2%80%99s+Marathon%2C+Not+A+Sprint_Img4.png 'Credit: Flip')

But if you’re thinking Chimpers marks the end of this saga, don’t worry. All along, whether it was TBAC → Diamond Fleece → Genesis Chimps → Ebook & Chimpers, this team has valued maintaining mystery and rewarding those holders who stick with them for the journey. We do know there’s a handful of community-based projects in the works, more lore is being revealed through Chubby Chimpers Chronicles, and that the Chimpers will be heading to “The Dojo” (to receive training,) but as for the specifics of the next big unfolding, we just have to be patient to see what comes next in the chimpverse.

---

_Disclaimer: This is not financial advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your own research. See [Flip’s Terms of Service](https://flip.xyz/terms-of-service) for more details._


Unpacking a legendary, labyrinthian project

Clone X: Unpacked


You wake up one day and three aliens are standing before your bed — according to them, they've come to help you evolve past organic form, noetically download your consciousness onto the cloud, and explore space embodied as a digital, free-form avatar. This is, effectively (with _some_ embellishment,) the lore behind [Clone X](https://flip.xyz/art/collections/clonex/summary), a 20,000 item NFT collection that boasts avatars designed in collaboration with [Takashi Murakami](https://twitter.com/takashipom).

Lore aside — with 205k Eth volume traded, Clone X ranks #7 in terms of the most volume traded out of any collection on OpenSea. They are a giant within this industry, and their 12.5 Eth floor price (which has, on occasion, scraped multiples above that) is a symbolic testament to the space they take up.

![Flip CloneX Price Chart](https://flip-blog-images.s3.amazonaws.com/Clone+X_+Unpacked_Img1.png 'Source: Flip')

However, we believe, in order to truly appreciate what Clone X has achieved (aside from just the numbers,) one has to comprehensively unpack the actors behind the scenes: what’s RTFKT’s deal? Who’s Murakami? How’s Nike involved? And, what does it means for their holders?

## RTFKT

What [RTFKT](https://rtfkt.com) is trying to accomplish could easily be misunderstood by folks outside of crypto. Founded in 2020, their self-summary reads: “We are a creator led organisation. RTFKT uses the latest in game engines, NFT, blockchain authentication and augmented reality, combined with manufacturing expertise to create one of a kind sneakers and digital artifacts” — but, imagine reading that to your parents and trying to convince them this is the next big thing.

The simplest way we can conceptualize RTFKT is: they’re trying to bridge/balance the world of art and fashion with the world of crypto and gaming. Balance is one of the keywords there — they don’t want to merely be a fashion brand, nor do they want to be just another ‘metaverse brand’.

An encapsulating example of RTFKT’s balancing act came with their early [FEWOCiOUS Collaboration](https://flip.xyz/art/collections/fewocious-x-rtfkt/summary) where they dropped custom sneakers both physically and virtually as NFTs. Not only did the FEWOCiOUS shoes sell out within ten minutes, but also, at their peak in October, they were going for ~16 Eth minimum. Undoubtedly, RTFKT knew they were on to something with this straddling of two worlds.

![RTFKT Shoe Collab](https://flip-blog-images.s3.amazonaws.com/Clone+X_+Unpacked_Img2.png 'Credit: RTFKT')

## Murakami & Clone X

Not long after their earlier sneaker releases, RTFKT managed to link up with [Takashi Murakami](https://twitter.com/takashipom) for their next world-straddling project, except this time it was going to be digital avatars. In hindsight, Murakami was the perfect guy for the job, a world-class artist who’s worked with various mediums; everything from painting to sculpture to animation — plus, he’s known for bridging high-art and low-art subcultures — a complementary fit to RTFKT’s acute interest in the areas in between.

![CloneX Takashi Picture](https://flip-blog-images.s3.amazonaws.com/Clone+X_+Unpacked_Img3.png 'Credit: RTFK; Takashi Murakami')

Perhaps, on the surface, Clone X might not appear all that different from the rest — an identity-based avatar play with bells and whistles — however, the fact that Clone X avatars are 3D compatible is noteworthy — by giving you access to the 3D files behind the Clone X art, they’re encouraging holders to explore other strands of the metaverse, all the while garnering self-promotion for their community.

![Flip CloneX Listings](https://flip-blog-images.s3.amazonaws.com/Clone+X_+Unpacked_Img4.png 'Source: Flip')

Of course, Clone X wasn’t without its hiccups (specifically, [the mint/auction](https://www.yahoo.com/now/clonex-nfts-sell-auction-roiled-091644332.html)) — but, on an aesthetic level it didn’t take long for them to click with a broader audience. The artwork was implicitly flipping the finger at minimalist, 2D pixel art, everything from shape to color to clothing strongly suggested that they’d be competitive in the fashion landscape. This was affirmed in December 2021, shortly after releasing Clone X when RTFKT was bought out by Nike.

## Nike & RTFKT

Sometimes a large company buying out a smaller niche company can mean the death of the smaller company’s ingenuity. Fortunately, this doesn't seem to be the case with Nike’s buyout of RTFKT. On the contrary, it appears to have been a symbiotic buyout; it gave Nike a chance to spread their wings into web3 and it gave RTFKT a massive push into mainstream markets. We see this with the MNLTH airdrop, a sort of virtual care-package for Clone X holders that through a quest series was later unlocked and revealed to contain [ ‘RTFKT x Nike Dunk Genesis CryptoKicks’](https://flip.xyz/art/collections/rtfkt-nike-cryptokicks/explore), a Skin Vial (to customize the CryptoKicks), and a second MNLTH vault.

![Flip RTFKT Listings](https://flip-blog-images.s3.amazonaws.com/Clone+X_+Unpacked_Img5.png 'Source: Flip')

While you may not be able to wear them in real life, The RTFKT x Nike Dunk Genesis CryptoKicks are wearable in various virtual settings, like Snapchat filters and [NIKELAND](https://www.roblox.com/nikeland) (Nike’s take on the metaverse.) Perhaps the use-case is still ahead of its time, but for one thing, the CryptoKicks further solidified Clone X holders’ faith in RTFKT and simultaneously caught the attention of the fashion world — VogueBusiness said “the popularity and hype surrounding the mysterious MNLTH, even before Friday’s [CryptoKicks] drop, is a testament to the trust that RTFKT has instilled within its following.”

## It Keeps Coming

Of course, MNLTH and the CryptoKicks are just a portion of the added value that RFKT has supplied Clone X holders with. They’ve also dropped [Space Pods](https://oncyber.io/destinations/rtfktspacepod) through OnCyber, a sort of virtual bachelor-pad-meets-art-gallery that can be decorated with your favorite NFTs. Additionally, Clone X holders have had special access to a number of adjacent NFT collections like [Murakami Flowers](https://flip.xyz/art/collections/murakami-flowers-2022-official/summary).

![Oncyber Metaverse Image](https://flip-blog-images.s3.amazonaws.com/Clone+X_+Unpacked_Img6.png 'Source: OnCyber')

And not only is the broader metaverse being built out day by day (worlds in which Clone X avatars will be able to flex their digital identity,) but also, Clone X holders have the reveal of MNLTH 2 still to look forward to — which, keep in mind, Nike still has trademarks for a crypto wallet, marketplace, token, and more — things could get spicy at any moment.

Needless to say, Clone X is not just another pfp project — it’s a complex market-blending vision that, when taken in the context of its webbed connection to RTFKT and Nike, demands pause, patience, and understanding.

---

_Disclaimer: This is not financial advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your own research. See [Flip’s Terms of Service](https://flip.xyz/terms-of-service) for more details._


We know where they have been, but where are they going?

Cool Cats: New Beginnings


Released back in July 2021, 9,999 [Cool Cats ](https://flip.xyz/art/collections/cool-cats-nft/summary)(9, because cats have 9 nine lives) minted out, first at 0.06 Eth (which was lowered to 0.02 Eth an hour after minting began), then began a patient, but tireless crawl in price and popularity, breaching a 1 Eth floor by August, and 10 Eth by September.

Since then, Cool Cats’ floor has oscillated between 3 Eth and 16 Eth, racking up an impressive 108k Eth in total volume traded, where today, they remain at #13 in terms of the most volume ever traded on OpenSea.

![Flip Cool Cats Summary](https://flip-blog-images.s3.amazonaws.com/Cool+Cats_+New+Beginnings_Img1.png 'Source: Flip')

Price action aside, the Cool Cats are known for being one of the more aesthetically-justified collections, and rightfully so given that the artwork, designed by Colin Egan ([@thecatoonist](https://twitter.com/thecatoonist)), is based on a character that Egan first started drawing back in high school, a character called ‘Blue Cat’ who he’d continually perfect over the next 10 years.

![Early Cool Cats Imagery](https://flip-blog-images.s3.amazonaws.com/Cool+Cats_+New+Beginnings_Img2.png 'Credit: @thecatoonist')

Beyond the JPEG, the Cool Cats team has done a fine job of bringing Egan’s artwork to life through various forms of utility, whether that be [merchandise](https://store.coolcatsnft.com), colorful [lore](https://www.coolcatsnft.com/story), or impressive collaborations with folks like [Time Magazine](https://coolcatsnft.medium.com/time-x-cool-cats-9476fcd998ee). Perhaps most notably, though, they’ve delivered [Cool Pets](https://flip.xyz/art/collections/coolpetsnft/summary) and [Cooltopia](https://cooltopia.coolcatsnft.com), a second collection and an accordant system that allows Cool Cats owners to leverage their NFTs beyond just pfps.

![Cool Cats Questlog](https://flip-blog-images.s3.amazonaws.com/Cool+Cats_+New+Beginnings_Img3.png 'Credit: Cool Cats')

_If you’re not familiar with Cooltopia, the gist is such: Your Cool Cats claim Cool Pets → your Cool Pets complete quests that give you MILK → MILK is then used to buy supplies to take care of/evolve your pet so you can earn more MILK from quests → and eventually, once your pet is fully evolved, your Cool Pet can be staked at The Adventurers Guild so that you can earn MILK passively._

And community-wise, they've certainly made their mark on the NFT space. They have an active Discord group with just shy of 100k members, they’ve received endorsements from celebrities like Reese Witherspoon, Alexis Ohanian, and DJ Steve Aoki, and, according to [Inspect](https://www.nftinspect.xyz/collections/0x1a92f7381b9f03921564a437210bb9396471050c), they have the 10th most popular Ethereum-based PFP with 1734 people currently dawning their Cool Cat on Twitter.

![Cool Cats Time Image](https://flip-blog-images.s3.amazonaws.com/Cool+Cats_+New+Beginnings_Img4.png 'Credit: Cool Cats')

Why then, does it feel like the Cool Cats have lost their momentum?

For one thing, most if not all projects are slouching, you know, because of the bear market and all. On top of that, the release of Cool Pets initially suffered from numerous delays, first from [within](https://nftevening.com/cool-cats-pets-delayed-until-the-3st-after-amending-their-smart-contract/) (problems with their smart contract code) and then from [without ](https://nftevening.com/cool-cats-delay-cool-pets-public-mint-again-due-to-a-ddos-attack/)(bots attacking their minting contract). Even after smoothing out the issues with Cool Pets and Cooltopia’s release, some have suggested Cooltopia is a bit recursive (too much farming $MILK and not enough engaging gameplay). More generally,, Cool Cats might ironically be victims of ‘The Delivery Paradox’ (we just made this up) whereby delivering on your roadmap means your project can no longer benefit from a wave of projected hype and hope.

Nevertheless, they’re not giving up. Back in March 2021, Cool Cats signed with CAA, a leading talent agency out of L.A., and they have big plans for “licensing and merchandising, animated content, brand partnerships, live events, publishing, and more.”

They're already cooking up a whole new set of characters for their collection, a new merch store, new community puzzles, new Cooltopia features (like housing and boss quests), an immersive IRL experience at NFT NYC, and CoolVerse (which will take Cooltopia to new levels with a 3D multiplayer world.)

![Cool Cats Roadmap](https://flip-blog-images.s3.amazonaws.com/Cool+Cats_+New+Beginnings_Img5.png 'Credit: Cool Cats')

Keep in mind, this is a community of cat-people — folks who aren’t afraid to chug milk in honor of their NFTs and folks who compromise, arguably, one of the more fervent animal sub-cultures out there. We lurked inside their most recent Town Hall spaces on Twitter, and we’ve got to admit, tonally, the community members present sounded both patient and sanguine about the future of Cool Cats.

Perhaps with NFT NYC rapidly approaching, the Cool Cats team will have a prime chance to walk-the-walk, showcase their reinvigorated, redirected roadmap, and meanwhile, the community will have a chance to come out and show just how much they ‘like the cats’.

---

_Disclaimer: This is not financial advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your own research. See [Flip’s Terms of Service](https://flip.xyz/terms-of-service) for more details._


At the crossroads of diligence and opportunity

XCOPY: A Painstaking Rise


Here’s the section where, if we knew anything substantial about [XCOPY](https://twitter.com/XCOPYART), not just as an artist, but as an individual, we’d give you a nice melodic paragraph detailing his background . . . but, the reality is we only have scattered bits and pieces.

Besides the fact that he’s based in London, most of what we know about XCOPY is gleaned from his catalog of stygian GIFs that “explore death, dystopia and apathy through distorted visual loops”, his cryptic social media presence, and the occasional short-form interview.

![XCOPY Artword July 2013](https://flip-blog-images.s3.amazonaws.com/XCOPY_+A+Painstaking+Rise_Img0.png 'Credit: XCOPY')

We do know that XCOPY’s been making GIF art since as far back as 2010, originally posting his works on [Tumblr](https://xcopy.tumblr.com). And, that it was on Tumblr where XCOPY shared thousands of his early GIF art and built an incredibly niche but devoted following, some of which are the proud owners of physical XCOPY prints (long since discontinued).

We also know that for years XCOPY wasn't making substantial money off of his art, but despite that, the guy was a prolific beast who tirelessly pushed out new art every month (with the exception of a one-month hiatus in April 2014) for 10 years straight.

![XCOPY 10th Floor Ethics](https://flip-blog-images.s3.amazonaws.com/XCOPY_+A+Painstaking+Rise_Img1.png 'Credit: XCOPY')

With copious research, we only surfaced [two](https://editorial.superrare.com/2021/06/21/superrare-x-bonhams-presents-cryptogs-7-questions-with-xcopy/) [interviews](https://www.artsy.net/breezy-art/article/breezy-nice-talk-xcopy) with XCOPY directly, and even then, both times he managed to remain artistically curt and vague in his responses — however, the one thing he was rather explicit about was his transition into NFTs.

According to XCOPY, “I got lucky. Late 2017, I bought some bitcoin and fell down the crypto rabbit hole. Soon after that I discovered Ascribe.io which was using Bitcoin to create digital editions. I started selling these for a couple of bucks through Twitter and geeking out with other nerds. In early 2018 I ended up beta testing what became SuperRare.”

![XCOPY message](https://flip-blog-images.s3.amazonaws.com/XCOPY_+A+Painstaking+Rise_Img2.png 'Credit: XCOPY')

_Sidenote: Back in 2017, XCOPY was in the running to be in [CurioCards](https://opensea.io/collection/curiocardswrapper) a historic, 30-item NFT card pack that featured 7 artists, but[ didn’t make the cut](https://twitter.com/xcopyart/status/1482741052700336130?s=27&t=AkyReLzkGo8n_loJ-cP6BQ). _

When asked why he was so open to NFTs despite the space being very much nascent at the time, he responded plainly that “it was the first and only way to sell my digital artwork in its true form. Minting tokens was a way to sign my art and make it collectable.”

Indeed, in retrospect NFTs posed the missing piece in spreading and selling XCOPY’s work, but it would be an oversimplification to say that it was just a linear transition. On the contrary, it was a time of experimentation for XCOPY. He wasn’t immediately fetching massive sales (in 2018, he posted on Tumblr _“Today I sold my first gif for £1. Nothing can stop us Tumblr”_ ) and a significant portion of XCOPY’s early NFTs have been lost due to his work being locked in contracts setup through sites that are no longer running like Ascribe.io, [https://digitalobjects.art](https://digitalobjects.art), and [RareArt Labs](https://twitter.com/rareartlabs) (nonetheless, pockets have survived, like some of his NFTs from [Digital Objects Artwork](https://opensea.io/collection/digital-objects-artwork) and his Christmas-themed [Radi.Cards](https://opensea.io/collection/radicards-v2?search%5BsortAscending%5D=true&search%5BsortBy%5D=PRICE&search%5BstringTraits%5D%5B0%5D%5Bname%5D=artist&search%5BstringTraits%5D%5B0%5D%5Bvalues%5D%5B0%5D=XCOPY) (NFT e-cards) among others.)

![XCOPY Christmas NFT](https://flip-blog-images.s3.amazonaws.com/XCOPY_+A+Painstaking+Rise_Img3.png 'Credit: XCOPY')

What’s striking is that over the course of ten years, bouncing between platform (Tumblr to myriad NFT platforms) and audience (dabbling in both large collections and 1:1s), XCOPY never strayed far from his patent neon nightmare-in-a-blender style, a style replete with gallows humor and social commentary, a style that refuses to bend the aesthetic-knee.

And as far as we know, (with the exception of a brief go at [pixel art](https://opensea.io/assets/pixelchain?search[stringTraits][0][name]=Author&search[stringTraits][0][values][0]=XCOPY&search[sortAscending]=true&search[sortBy]=PRICE)) it seems like his process hasn’t changed either. Some of his early Tumblr posts show that he might have sketched his work by hand, while other posts suggest that he was using photoshop and that his first GIFs “were really just 4 random images mashed together.”

![XCOPY Hand Sketch](https://flip-blog-images.s3.amazonaws.com/XCOPY_+A+Painstaking+Rise_Img4.jpg 'Credit: XCOPY')

![XCOPY Hand Gif](https://flip-blog-images.s3.amazonaws.com/XCOPY_+A+Painstaking+Rise_Img5.gif 'Credit: XCOPY')

Notice, that hand sketch he did back in July 2016 (pictured above), looks eerily similar to his later work ‘$LAVE’ released in 2019. Perhaps he’s hand sketching the layers and then mashing them together with images on photoshop?

Whatever he’s doing, people are feeling it. Today his 1:1s like ‘[Right-click and Save As guy](https://superrare.com/artwork/right-click-and-save-as-guy-1154)’ and ‘[A Coin for the Ferryman](https://superrare.com/artwork/a-coin-for-the-ferryman-10)’ have sold for $7 million and $6 million respectively (a mere fraction of his estimated total NFT sales of over $70 million.)

Part of the buzz surrounding XCOPY’s trajectory is not just the amount of work he’s sold (estimated at just shy of 10,000 pieces), but also the wide range of public figures who are buying and talking about his work. Notably, [Cozomo de’ Medici](https://twitter.com/CozomoMedici), jokingly alleged to be Snoop Dog’s alt Twitter account, bought XCOPY’s ‘[Some Asshole](https://superrare.com/artwork/some-asshole-7)’ piece for $3.86 million. Likewise, influencer [Gary Vee](https://flip.xyz/updates/gary-vee-and-the-grey-pill), not unknown for hot-takes, suggested that XCOPY “shows all the nuances of potentially becoming a Warhol, or a Banksy, or a Pollock.”

Perhaps in the future, art history undergrads will be learning about XCOPY (and hopefully we’ll have more answers by then), but for the time being, consider yourself early.

---

_Disclaimer: This is not financial advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your own research. See [Flip’s Terms of Service](https://flip.xyz/terms-of-service) for more details._


Separating Digital Wheat From Digital Chaff

The Dollar Store In Goblin Town


Goblin town, pullback, dipperino . . . does it matter what you call it? Number has gone down. For argument's sake, let’s call it a bear market.

![Goblin Image](https://flip-blog-images.s3.amazonaws.com/The+Dollar+Store+In+Goblin+Town_Img0.jpg 'Source: BitcoinPanda69 on Twitter')

Ever since their first wave of mass adoption, we don’t really know how NFTs will react in a categorical bear market. Past crypto bear markets have been marked by thousands of protocols deaths and 85% or greater drawdowns for those that survive – should we expect the same for our jpegs? Our vague, non-committal guess is that it won’t be pretty, but it’ll be an opportunity at the least.

Multi-month or multi-year downtrends are historically opportune times to buy; however, the last thing you want to do is immediately go on a shopping spree, buying all those projects you’ve been priced out of, just because the market’s had a few red weeks in a row ( . . . unless money isn't an issue and you simply love the thing, in which case, prudence is irrelevant.)

So that’s what this piece is about: learning how to discern when to buy NFTs during bear-market conditions, as well as learning how to decipher what projects are merely discounted and what projects are beginning a never-ending downtrend into despair and annihilation.

# Price:

We know you Flip folks love metrics, so we’ll start with price action. During a downtrend, price action is like the vitals of a project: they tell you its heartbeat, its temperature, its risk of stroke.

If you’re considering scooping up a project that’s recently dipped heavily, the first thing you want to check up on is its historical price range: what’s the lowest they’ve been and what’s the highest they’ve gone? Making a lower low or breaking new lows are generally not the time to buy because they signal that the market’s actively doubting a project’s valuation. You’re better off waiting until prices have stablized or found support for an extended period of time.

![Price example chart](https://flip-blog-images.s3.amazonaws.com/The+Dollar+Store+In+Goblin+Town_Img1.png 'Source: Trading with Rayner')

Likewise, if there is a particular collection you're interested in buying, try to identify and analyze collections that fall within a similar range. Let's say you're looking exclusively at blue-chip projects like [Bored Apes](https://flip.xyz/art/collections/boredapeyachtclub/summary) and [CryptoPunks](https://flip.xyz/art/collections/cryptopunks/summary). If Bored Apes are down 95%, but CryptoPunks are only down 50%, one could argue that CryptoPunks are the bargain because they have _[relative strength](https://www.investopedia.com/terms/r/relativestrength.asp) _(they’re holding up better)\_ \_compared to similarly slotted projects.

Keep in mind, price should be considered in tandem with trading volume — generally, you want to see high trading volume because it shows that a collection still has buyers and thus is relatively liquid. Don’t be fooled though, that volume could be due to panic selling or due to [wash trading](https://cointelegraph.com/explained/what-are-wash-trading-and-money-laundering-in-nfts). This is where Flip is your friend — you can go and check the chain to see the nature of a collection’s trading. For instance, [using the collection activity page and filtering by sales](https://flip.xyz/art/collections/terraforms/activity?page=1&search=Type%3Asale), you could see that a significant amount of volume for ‘[Terraforms by Mathcastles](https://flip.xyz/art/collections/terraforms/summary)’ is coming from wash trading on LooksRare.

![Flip Chart of Price Reduction](https://flip-blog-images.s3.amazonaws.com/The+Dollar+Store+In+Goblin+Town_Img2.png 'Source: Flip')

In a more passive vein, you can also follow [@FlipAlerts](https://twitter.com/FlipAlerts) on Twitter to get a feel for where volume is coming from, for instance, someone paying 105% above floor price for a rare [Clone X](https://flip.xyz/art/collections/clonex/summary).

![Clone NFT sold above floor](https://flip-blog-images.s3.amazonaws.com/The+Dollar+Store+In+Goblin+Town_Img3.png 'Source: Flip Alerts')

And lastly, look honestly at the chart. We’re not talking about technical analysis per se, but rather about using your intuition — NFT charts tell a story just as much as stock or crypto charts do. Here’s two example of Flip charts that show extended downtrends, except one chart shows an almost-ripe buying opportunity and the other shows a promise of despair:

![Cool Cats Price Chart](https://flip-blog-images.s3.amazonaws.com/The+Dollar+Store+In+Goblin+Town_Img4.png 'Source: Flip Cool Cats Summary Page')

![Flipxyz The Beeings Price Chart](https://flip-blog-images.s3.amazonaws.com/The+Dollar+Store+In+Goblin+Town_Img5.png 'Source: Flip TheBeeings Summary Page')

# Community & Context

Shifting away from the quantifiables for a moment . . . arguably one of the most important indicators of a bargain project is whether or not the community is still healthy.

Don’t disregard the intangibles. Price action might be telling you a project is a screaming buy, but a quick visit to the collection’s Discord might tell you otherwise.

Take the case of what recently happened with [ZAGABOND and Azuki](https://flip.xyz/updates/zagabond-not-the-tldr): if you had your head buried in charts, you’d have missed the context for why Azuki was down nearly 40% overnight (because the founder published a [controversial article](https://flip.xyz/updates/zagabond-not-the-tldr).)

In that same vein, be on the lookout for any positive news or upcoming releases for a project. But keep in mind that good news, just as much as bad news or FUD (Fear, Uncertainty, and Doubt), is not necessarily causal with long-term success — sometimes new releases reveal that the emperor has no clothes, and sometimes FUD shows the resiliency of a community in spite of circumstances. Which is also why, unless you're uber confident in your investing ability, it's better to sit on your hands, miss a transitory wick up or down, and let news cycles be digested by the market before you make a move.

Assuming no grand news, you still want to check to see if a community is active/healthy (beyond just three people posting ‘gm’ each day) and to see if they talk about anything other than price action (because price is a rather weak bonding-agent.)

![NFT Community Chat](https://flip-blog-images.s3.amazonaws.com/The+Dollar+Store+In+Goblin+Town_Img6.png 'Source: Twitter')

As a rule of thumb, community sincerity (financial, recreational, or religious) is tested during hard times. Going into a multi-month or multi-year bear market will quickly reveal whether members of a community still believe in the project, whether the members actually like each other, or whether they were merely hanging around for number to go up.

And ok, if that’s too qualitative for you, I suppose we could give you some metrics for measuring the health of a community too.

[Nftinspect.xyz](https://www.nftinspect.xyz/rank/communities) is one tool you could use to see the number of people in a community that are rocking their nft as their pfp, sort of like a devotion-ranking.

![NFT Inspect Commnunity Rankings](https://flip-blog-images.s3.amazonaws.com/The+Dollar+Store+In+Goblin+Town_Img7.png 'Source: NFT Inspect')

Try not to get married to an investing thesis — look both ways — see what new projects are coming out. Different NFT projects are competing for different niches, be it the best pfp, generative art, or 1:1 project, and you have to ask yourself if an existing project is going to be replaced by a newer, shinier collection.

Perhaps you’ll even consider taking the temperature on the broader macro environment — knowing whether CPI came in above or below expectations, or knowing what the status of the war in Ukraine is, aren’t irrelevant to NFT valuations.

At a certain point though, you'll have to zoom out from the charts, the metrics, and the Discord, and ask yourself: _Do I love the art, the product, or the service provided?_ Maybe you're wasting your time trying to time the market when you already know what you want.

# Some Parting Thoughts:

This guide cannot save you. As you can tell by now, we aren’t going to tell you precisely what projects to buy and when to buy them (and chances are, anyone who is telling you that you should buy x, y, or z collection ASAP, should initially be met with grain-of-salt skepticism.)

If we do indeed go into a full-blown, multi-year bear market, it’ll be an unprecedented event for NFTs. The levels of fear and doubt that would accompany such a climate are unthinkable (headlines like “NFTs Are Dead” will become commonplace), so buying during that time would/will be incredibly anxiety-provoking. All the more reason to do your homework —

— As best as you can, try to view bear markets as an opportunity to do research and learn more about NFTs — after all, bear markets are when the foundations for fortune are laid — lean away from trying to flip quick trades (remember, liquidity could be very low) and lean into growing your knowledge base, developing your own system for analysis, and building conviction around long-term projects.

![Meme Frog Lifting Weights](https://flip-blog-images.s3.amazonaws.com/The+Dollar+Store+In+Goblin+Town_Img8.jpg 'Source Bitcoinpanda69 on Twitter')

---

_Disclaimer: This is not financial advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your own research. See [Flip’s Terms of Service](https://flip.xyz/terms-of-service) for more details._


Ragnarok Meta: This Is Not A Drill


It's hard to say what did it — perhaps it was Facebook changing their name to Meta — just hearing the word ‘metaverse’ makes one a bit uneasy. Nowadays, innumerable NFT projects are claiming they’re building out _the metaverse_, and yet, it feels like there's a serious lack of evidence for all these statements.

Well, in the case of [Ragnarok](https://flip.xyz/art/collections/ragnarok-meta/summary), this might be one of the few collections that’s justified their claims. Not only is Ragnarok a 7,777 item anime-style NFT collection (on Ethereum) that doubles as a pfp and as an avatar, but they've actually got a browser-based [metaverse game](https://game.ragnarok.xyz) (_still basically a demo_) built on Avalanche. Not bad, considering they only released their collection on April 27th.

Since then, Ragnarok floor prices have fluctuated between 1 and 3 Eth, amassed 18.5k Eth in volume traded, and currently sit around a price of ~ 1.3 Eth per ‘Ronin’ (the name for their avatars). Price though, is probably one of the less-gripping aspects of the Ragnarok collection — it’s really their game that demands special unpacking.

![Flip Ragnarok Summary](https://flip-blog-images.s3.amazonaws.com/Ragnarok+Meta_+This+Is+Not+A+Drill_Img1.png 'Source:Flip')

## The Ragnarok Game & The Future

Lookswise, the [Ragnarok game](https://game.ragnarok.xyz) doesn’t disappoint — it’s the opposite of the [Pixelmon Fiasco](https://flip.xyz/updates/pixelmon-and-loathing) — it visually delivers on its promises through a Habbo-Esque layout with a clean, cybernetic city, fulgent and alive in a way that's reminiscent of Tokyo.

Admittedly, it's a bit retro in terms of gameplay, but retro in a purposeful, old-school sort of way. With your Ronin as your avatar, you can scurry around the demo city, a city dotted with various attractions and NPCs, and you can engage with the environment via little sidequests given to you by the NPCs (e.g. a hoverboard competition.)

![Ragnarok In Game Shot](https://flip-blog-images.s3.amazonaws.com/Ragnarok+Meta_+This+Is+Not+A+Drill_Img2.png 'Source: Ragnarok.xyz')

Could you spend all day playing this game? Probably not – however, that’s just right now. The current version of the game is merely a taster, albeit a promising taste of what's to come.

In future months, Ronin’s are going to quickly become imbued with more use-cases. Ronins will do all the basic RPG stuff like: gain experience, acquire skills, specialize, level up, change Classes, and buy/sell (\_NFT) \_items — that is, once the team introduces monsters (that can be killed and looted) and full-blown quests (which grant in-game progress.) These features, alongside the introduction of breeding and a native marketplace (that will allow folks to buy Ronin, rent Ronin, or sell their Ronin offspring,) are all slotted to be released in June.

Personally, we’re excited to see their first Manga chapter released soon. In graphic novel form, each Manga chapter (66 in total) will uncover the lore behind Ragnarok, provide narrative color to the game, and coincide with new in-game releases. Ragnarok founder, [@0xfanfaron](https://twitter.com/0xfanfaron), teased some of the lore in an [interview ](https://youtu.be/TzgYt74WQW4?t=370)with [Ed Change](https://twitter.com/edc) (Director of Gaming at Ava Labs), where he explained that Ronins are futuristic rebels fighting their way out of a world built by cyborgs, a world designed to profit from the distraction of humans through hedonism and entertainment — aka _The Matrix \_meets \_Wall-E_.

Timeline-wise, things will get especially spicy for the game in late 2022 when they introduce player vs. player combat, the ability to purchase/customize buildings and billboards (for businesses, hangouts, or advertising,) as well as the full launch of the Ronin economy, which will run on their native token $RAG and allow staking.

![Ragnarok Meta in Game](https://flip-blog-images.s3.amazonaws.com/Ragnarok+Meta_+This+Is+Not+A+Drill_Img3.png 'Source: Ragnarok.xyz')

Oh, and we can’t forget that in December of 2022, there’s big plans for a whole new world/map within the game, a world dubbed the ‘Pixel Dimension’ which will add a host of new activities, events, and interoperability so that other NFT collections can enter the Ragnarok world.

And look, lots of projects talk a big game when it comes to games. Ragnarok still has a long way to go towards achieving their version of the metaverse. Nevertheless, you have to give props where props are due: in short order, Ragnarok has produced a prototype that’s beautiful and intricate; they have the foundation, they have the vision, and now they have to keep going.

Hopefully, with a team of 31 people (everything ranging from a Game Economist, to a Character Modeler, to a Scenario Writer, to countless other artists and developers,) they're right on track.

---

_Disclaimer: This is not financial advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your own research. See [Flip’s Terms of Service](https://flip.xyz/terms-of-service) for more details._


Artistry that actually lives on blockchain

CyberBrokers, Worth Watching


Up there as one of the more elaborate collections featured on Flip, [CyberBrokers](https://flip.xyz/art/collections/cyberbrokers/explore) is a 10,000 item, _fully on-chain_ collection that boasts cyberpunk art pieces (each with unique traits; e.g. class, species, talent) which grant membership and access to metaversal experiences.

And, besides their captivating artwork that makes each CyberBroker appear as though they’re starring in a futuristic, hunger-games-esque fashion show, there’s a few things in particular that catch our attention with CyberBrokers.

## The Founder

In a space where many projects are led by pseudonymous founders, it's a rarity to know your leaders true identity, and even rarer yet to have one with an IRL resume as impressive as [Josie Bellini](https://twitter.com/josiebellini), founder of CyberBrokers.

Having previously worked in finance before joining crypto full-time in 2017 — Josie Bellini has since been busy creating art that engages and encapsulates the crypto ecosystem’s distinct ethos and history. Notably, in 2020, she created an art piece and metaverse puzzle of mindblowing scale that brought together leading projects (Neon District, CryptoKitties, Axie, Cryptovoxels, SuperRare, Age of Rust, and OpenSea) to create an immersive and interactive experience. That’s in addition to an impressive [portfolio](https://josie.io) of work which’s been exhibited at major blockchain conferences like Consensus, NFT NYC, and Satoshi Roundtable — as well as has been sold at Christies (pictured below), Sotheby’s, and featured on Obama.org.

![Josie Bellini Genesis](https://flip-blog-images.s3.amazonaws.com/CyberBrokers%2C+Worth+Watching_Img1.png 'Source: Christies')

## They’re Fully On-Chain

In addition to promising leadership, CyberBrokers is one of few collections that can truly brag about their tech. That’s because CyberBrokers NFTs are [fully on-chain](https://www.one37pm.com/nft/on-chain-and-off-chain-nfts) . . .

In tech terms, that means: all of the metadata related to artwork, traits, etc, had to be converted to SVG (scalable vector graphics), broken down into component pieces, then compressed to be stored as individual layers on the Ethereum network.

In layman's terms, it’s sort of like uploading and storing your photos on the cloud as opposed to simply holding them on a flash drive (except the cloud here is decentralized, not just some Google data center out in North Carolina). And this might seem like an obvious or logical step, but truthfully, the majority of NFT projects only store part of their metadata on-chain (meaning they rely on centralized structures to host ‘the media’ connected to the contract.)

We should clarify, there’s reasons why most projects don’t go fully ‘on-chain’, namely that it’s not easy and not cheap — the CyberBrokers team spent an estimated 91 Eth (over $250,000 at the time) just to do so. However, the upside is that CyberBrokers’ NFTs are highly decentralized, secure, and interoperable.

![Flip Cyber Brokers Collection](https://flip-blog-images.s3.amazonaws.com/CyberBrokers%2C+Worth+Watching_Img2.png 'Source: Flip')

So long as Ethereum is around, even if the CyberBrokers team disappeared, it wouldn’t affect the integrity and permanence of CyberBrokers’ collectibles. Likewise, being fully on-chain hopefully ensures that their collectibles are flexible and compatible with various other platforms — whether it be Sandbox, Decentraland, Cyprotvoxels, etc, — allowing you to take your CyberBroker wherever you go in the metaverse.

That’s the crux of this move though; moving their NFTs on-chain was not merely a marketing posture, but a sincere signal to the community that they plan to be around for a long, long time.

If you want to hear more about CyberBrokers going fully on-chain, there’s a great [interview](https://youtu.be/A_q7i1paFdk?t=2720) with [J1mmy.eth](https://twitter.com/j1mmyeth), founder & CEO of nft42, where he breaks down the importance of on-chain NFTs and gives CyberBrokers an extensive shoutout.

## The Lore

In terms of content, CyberBrokers also stand out for their labyrinthian lore.

[CyberBrokers’ lore](https://cyberbrokers.io/lore/) is not just a few paragraphs of back-story — no, we’re talking full length chapters, well-developed characters, and an intriguing, crypto-native plotline. Essentially, each aspect of the CyberBrokers’ appearance is intimately linked to a deeper lore that's inspired by cyberpunk works such as _Ready Player One_, _Snow Crash_, and _Neuromancer_. The result is that nothing about the CyberBrokers’ art feels isolated or arational — on the contrary, everything has an explanation, for instance, among the different ‘[talents](https://flip.xyz/art/collections/cyberbrokers/traits?page=1&search=Trait+Name%3ATalent)’, there are 180 ‘Dealers’ known for their charismatic marketing of exogenous fixes for ‘serotonin, dopamine, endorphins, and adrenaline.’

![CyberBroker Traits](https://flip-blog-images.s3.amazonaws.com/CyberBrokers%2C+Worth+Watching_Img3.png 'Source: Flip')

If any of this complexity has you intrigued, you can check out their series on [Spotify](https://anchor.fm/cyberbrokers/) where you can listen along as a radio-grade, British voice dramatically reads the Cyber Brokers lore aloud.

Here’s a taste from “[Chapter 1](https://anchor.fm/cyberbrokers/episodes/Chapter-1-Project-Paradigm-e1gsps2)”:

_“Unironic Ken didn't have to worry about issues of the physical world. He was a CyberBroker. One of the poor souls permanently severed from their human bodies and stuck, wandering the metaverse forever._

_A couple centuries ago, after the arctic shelves collapsed and triggered the first modern ice age, the world governments came together with a plan to save humanity by moving everyone into the metaverse. It had been called "The Paradigm Shift". The first ten thousand volunteers who logged in to their experimental Paradigm rigs, intent on permanently colonizing cyberspace, instead met with disaster.”_

## Community Quests

Beyond just entertainment, the rubber really meets the road when you consider CyberBrokers’ lore in the context of their ‘Community Quests’.

These ‘[Community Quests](https://cyberbrokers.substack.com/?utm_source=substack&utm_medium=web&utm_campaign=reader2?utm_source=%2Fsearch%2Fcyberbrokers&utm_medium=reader2)’, inspired by a Dungeons and Dragons framework, give the community a chance to work together to solve puzzles that both uncover and shape the future storyline of CyberBrokers.

Anyone, even non-holders, can [join in](https://discord.com/invite/josie) and help (for perspective, [Quest #1](https://cyberbrokers.substack.com/p/quest-1-solution-summary?s=r) was completed by a collective of 1,947 wallets and 1,225 CyberBrokers.) However, it might be more interesting if you do own a CyberBroker because its unique traits/characteristics can be utilized to hasten the solution to these puzzles (e.g., each ‘[class](https://flip.xyz/art/collections/cyberbrokers/traits?page=1&search=Trait+Name%3AClass)’ has a different number of dice rolls they can perform.)

Also, not only does completing these quests help direct the CyberBrokers’ storyline, but completion might come with rewards for those who participate (even some non-CyberBroker holders), like this [mechanical arm](https://josiebellini.substack.com/p/airdrop-enforcer-and-lupis-model?s=r) that was airdropped as a reward to those who participated in Quest #1.

![CyberBroker Airdrop](https://flip-blog-images.s3.amazonaws.com/CyberBrokers%2C+Worth+Watching_Img4.png 'Source: CyberBrokers')

## The Combo

By themselves — having a promising founder, having fully on-chain collectibles, or having elaborate lore and Community Quests — are not necessarily reason enough to be impressed. But, put those factors in combination and you've got yourself a project worth watching out for.

Even in terms of price alone, [CyberBrokers](https://flip.xyz/art/collections/cyberbrokers/explore) have proven themselves to be a real contender — they originally minted on March 4th, 2022 at a price of 0.35 Eth and have since seen dramatic peaks and valleys, at times trading at a floor price between 6 and 8 Eth.

Today, they respectively rest at a ~3 Eth floor price, with total volume traded around 32k Eth.

Considering [Community Quest #2](https://cyberbrokers.substack.com/p/quest-2-completed?utm_source=%2Fprofile%2F1007117-cyberbrokers&utm_medium=reader2&s=r) was just completed (with the potential to win multiple airdrops), as well as the fact that a generally hopeful sentiment is washing over markets at the moment, it’ll be interesting to see how CyberBrokers match up in the near future.

---

_Disclaimer: This is not financial advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your own research. See [Flip’s Terms of Service](https://flip.xyz/terms-of-service) for more details._


On Monday night, amidst market's crashing and the UST meltdown, a small explosion went off in the NFT world

ZAGABOND, Not the TLDR


On Monday night, amidst [market's crashing and the UST meltdown](https://decrypt.co/99990/crypto-twitter-reacts-to-ust-collapse-and-market-meltdown), a small explosion went off in the NFT world — [ZAGABOND.ETH](https://twitter.com/ZAGABOND), founder of [Azuki](https://flip.xyz/art/collections/azuki/explore), unexpectedly tweeted out a controversial article.

[ZAGABOND's article](https://mirror.xyz/0x1Cb8332607fba6A780DdE78584AD3BFD1eEB1E40/yG8rI1lpQGLPhZch0kjxYRjKTtA9rAL51zg-ZrURyAc), written in a narrative form and titled 'A Builder's Journey', clarified that he'd founded three projects, 'CryptoPhunks', 'Tendies', and 'CryptoZunks' prior to Azuki, as well as provides a self-analysis of what was learned/ what failed with each of these projects.

With regard to 'CryptoPhunks' (a Punks parody collection that utilized a fictional figurehead 'Philip the Intern' and a unique trading-card style mint,) he claims they taught him about the power of 'storytelling'. Nevertheless, he explains that Phunks suffered greatly from multiple DMCA (Copyright infringement) takedown requests from Larva Labs. Also though, he rationalizes that it was a simple 'parody' collection that outgrew its original vision, and thus, "the web3 path forward was to decentralize the project by handing over the reins to our community, moving the metadata to IPFS, and allowing the community to continue the forward march of Phunks."

![sterlacci.eth tweet: turning your NFT project over to the community](https://flip-blog-images.s3.amazonaws.com/fun-to-fix.jpg 'Source: [https://twitter.com/johnsterlacci/status/1523880586384879616?s=27&t=e_sZs07bxRqvvMvYrlKREA](https://twitter.com/johnsterlacci/status/1523880586384879616?s=27&t=e_sZs07bxRqvvMvYrlKREA)')

As for 'Tendies', he said that the light-hearted, chicken-tender-themed collection, despite having strong meme-value, failed to mint out, and so it was only rational to wind down the project shortly after hosting a community raffle, citing that they'd learned the "importance of original ideas rather than chasing a short-lived meta."

And lastly, he explained that his involvement with 'CryptoZunks', a re-roll based iteration on Punks, taught them the importance of having a unique-minting experience. However, unfortunately for Zunks, as they sought to build out new features, limitations like gas costs 'killed the product experience', and they realized demand had left for good when "less than 15% of the free airdrop was claimed."

Having laid out his past involvements, ZAGABOND ties it all together in a swift conclusion where he asserts that "Azuki wouldn't be what it is today without the learnings from our previous projects."

Of course, Crypto Twitter had their own thoughts to add. Soon after the release of his article, more information about his previous projects started to flood the twitter-verse. Folks were pointing out that [Beanz metadata had been leaked prior to release](https://twitter.com/meta_morphy/status/1522614727880359937?s=11&t=7BAl6Z9X3Tj4MUUN68YtPA), or that the [CryptoPhunks royalty fee had suspiciously been boosted to 5%](https://twitter.com/huckleberrygump/status/1523886325337706496?s=20&t=1X8OS7thTlclHt4Gc13dug) on Looksrare prior to a wash trade that netted 300 Eth ($950k at the time), or allegations that ZAGABOND had been [impersonating a woman through the use of the 'Mandy'](https://twitter.com/0xMandy) account associated with CryptoZunks.

Within hours of ZAGABOND's article going out, the Azuki floor price had fallen from roughly 16 ETH to about 13 ETH, and would continue to slide through the night.

In an attempt to clear the air, ZAGABOND agreed to a Twitter spaces with [Andrew Wang](https://twitter.com/andr3w) and [@whizwang](https://twitter.com/whizwang) (Azuki Head of Growth) the next day.

## The Twitter Space

The demand for answers was clear: at its peak, 14,000 people were listening in to [the Twitter spaces with ZAGABOND and Andrew Wang](https://twitter.com/andr3w/status/1523851128932343808?s=20&t=ORTCbetTMAfmszRs4YOqCg).

Wang, who previously has been paid (up to $2500 a month) to host spaces (but apparently not on this occasion), proceeded to go down the line and address ZAGABOND's article and a number of the other allegations being made.

Firstly, ZAGABOND clarified why the article came now, seemingly out of the blue. His line was that they've wanted to "share this statement for a while, but because of harassment we had to come out with it quicker." However, who exactly was harassing him was never made clear.

When asked about the female 'Mandy' account associated with CryptoZunks, ZAGABOND explained that he was not impersonating a female — the account was a 'character' similar to "Philip the Intern' or "Bobu the Farmer' associated with their other projects, and the account was shared among the CryptoZunks team which included a female who regularly posted from it.

![0xMandy Profile Picture, building CryptoZunks](https://flip-blog-images.s3.amazonaws.com/mandy-profile.png 'Source: [https://twitter.com/0xMandy](https://twitter.com/0xMandy)')

Wang then moved on to asking about the LooksRare royalty fee on Phunks being boosted to 5% before a wash sale, to which ZAGABOND said they "didn't put too much thought into it," but rather, they were just excited to be on LooksRare ever since they'd been delisted from OpenSea multiple times.

More broadly, they addressed what it means to 'rug' a project. ZAGABOND defended his previous projects as exempt from 'rug' status because they delivered on everything they promised — and that a bigger discussion needs to be had because, "there is a disconnect when it comes to expectations on creators and consumers" and that "from a creator perspective . .. if you create a project and you deliver on everything that you promised to deliver on . . . it seems that the consumers still have an expectation that the team, the devs, will continue to work on the project in perpetuity." On that note, he also said, CryptoZunks is an example of a community that still wants to do more, and so they're working out a way to fully hand off the project soon.

The latter parts of the Twitter space were not as fruitful. The interviewer, Andrew Wang, struggled to pull concrete answers from ZAGABOND. They repeatedly circled the topic of expectations ( i.e., how much does a founder owe a project once they've delivered,) as well as vague statements about how ZAGABOND hopes to make things right (including, hopefully transferring ownership for the other projects), and more generally, acknowledgement that Azuki would not be where it is without those experiences.

In short, words like: learning, learn, and learned, were used liberally by ZAGABOND.

## As the dust settles

It's hard to say what people conclusively feel — sort of like a political event, there's a whole gradient of reactions.

[Some](https://twitter.com/chubbicorn219/status/1524021389270917124?s=27&t=REMiQRrNbwOKF1xZf0BOLw) have defended ZAGABOND, asserting that "leaving 3 failed projects behind and creating 1 really successful one isn't scamming, it's life."

[Others](https://twitter.com/zachxbt/status/1524083505596149762?s=27&t=REMiQRrNbwOKF1xZf0BOLw) have delineated ZAGABOND's previous projects as soft-rugs (as opposed to hard-rugs), citing that even if "everything that was promised was delivered" . . . when you buy something, you don't "expect the founder to abandon directly after making millions."

Meanwhile, the floor price for Azuki's has chilled out and may have found temporary support, currently sitting at ~9.9 Eth. Funny enough, CryptoPhunks (0.4 floor) and CryptoZunks (0.05 Floor) have seen a resurgence in price and volume (Zunks, for instance, went from almost flat-lined volume to over 150 Eth in volume traded over the past three days.)

Many Azuki holders are wondering what comes next . . .

Could this blemish really mean the death of Azuki?

Can Azuki brush it off like the [Pudgy Penguins](https://flip.xyz/updates/pudgie-penguins) did after their leadership woes?

Or, was ZAGABOND right about the need for a discussion of creator/consumer expectations regarding NFT projects?

---

_Disclaimer: This is not financial advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your own research. See [Flip's Terms of Service](https://flip.xyz/terms-of-service) for more details._


Take the pill and follow us down the rabbit-hole.

Gary Vee and The Grey Pill


Gary Vee&hellip;

All I had to do was say his name and your limbic system lit up like a Christmas tree.

Chances are, we've all had some form of peripheral exposure to [Gary Vee](https://twitter.com/garyvee) (short for Gary Vaynerchuk.) Perhaps you've seen videos of him speaking at a rapid clip and using words like 'Fuck', 'Energy', and 'Kindness' in high-frequency combinations.

The thing is, Gary's a pretty divisive character — and this is not just my opinion, but something that Gary admits wholesale: “there's plenty of people that think I'm Walt Disney and I think there's people that think I'm a snake oil salesman . . . I understand. I have a personality trait that for many people, especially in a quick snippet in an Instagram post, or a LinkedIn post, can really throw one off.”

Now, add on the fact that Gary Vee is becoming a virtually unignorable presence in the NFT world — regardless of your feelings toward him, he's got reach, he's got a religious following, and he's going to be the way many people first hear about NFTs.

That's why I've taken the pill and gone down the Gary Vee rabbit-hole — beyond rumor or conjecture, I want to get to know the new preacher in town. So, I've put in my '50 hours' on Gary, I've filled a word document with encyclopedic notes on the dude, and I'm hoping to get a better understanding. First off, how did this guy get so big? Why is he in NFTs? And what's the deal with his collection [VeeFriends](https://flip.xyz/art/collections/veefriends/summary)?

## Edison Kid

For one thing, Garry Vee seems to be a true bottom-up success story. After Gary's family immigrated to the US from Belarus in 1978, they lived in a studio apartment out in Queens, New York . . . nine people in the studio apartment.

Later, his family moved to Edison, New Jersey, (which being an NJ native, I can tell you is not paradise) and it was there in Edison, where Gary grew up and started his first business at the age of seven, selling lemonade, and where in high school he made tens of thousands reselling baseball cards and toys.

Eventually, at fourteen Gary joined the family business, a liquor store called 'Shopper's Discount Liquors', where he bagged ice for $2/hour. As the story goes, he was working at the family liquor store during the 90's when the first wave of internet hype formed. Feeling a strange static in his entrepreneurial blood, Gary seized on the internet boom as a chance to move his dad's liquor business virtual, first by creating [Winelibrary.com](https://winelibrary.com) and then '[Wine Library TV](https://www.youtube.com/user/WineLibraryTV)', over time pushing their revenue from $3 million a year up to $60 million a year.

![Screenshot from Wine Library TV Episode 1](https://flip-blog-images.s3.amazonaws.com/gary-vee-wine-library-tv.jpg 'Source: Screenshot from:  https://www.youtube.com/watch?v=5EC4N5V1Ntg&t=26s')

The rest is history:

From Winelibrary.com → Wine Library TV → Appearances on Ellen Degenres and Conan O'Brien → Keynote speech at Web 2.0 (that later cemented a $1 million, 10-book deal with HarperCollins) → Angel investing (early with companies like Facebook, Twitter, Tumblr, Uber, Snap, and Venmo) → VaynerMedia/Vayner X (a nearly $300 million empire of Gary's various business ventures) → VeeFriends, he's certainly been grinding.

## Gary in NFTs

Similar to his early investments into companies like Facebook and Uber, Gary was quite early with crypto. He first learned about crypto from venture capitalist [Aaron Batalion](https://twitter.com/abatalion) back in 2014, but was initially dismissive of the space, saying that it felt like 'outer space' to him.

It'd take a few more exposures and careful conversations before Gary would find himself properly convinced of crypto's potential. He'd make his first investment in Ethereum back in 2015 when it was priced at $0.06 (or so he says, $0.06 might have been a slip of the tongue.)

In terms of getting into NFTs, Gary has mentioned that he'd watched collections like CryptoKitties come and go right in front of his eyes, but it wasn't really until his 2020 conversation with Kevin Rose (now Proof and [Moonbirds](https://flip.xyz/art/collections/proof-moonbirds/summary) founder,) that he dove into NFTs with the purchase of his first CryptoPunk, a moment he looks back on as his 'eureka moment'.

![Screenshot from YouTube saying Hot Take NFTs](https://flip-blog-images.s3.amazonaws.com/gary-vee-wine-youtube-nfts.jpg 'Source: https://www.youtube.com/watch?v=mEOYinDTeqE')

Months and dozens of research-hours later, Gary was talking about NFTs left, right, and center, whether it be creating his own collections, or investing widely in other projects/artists like [BAYC](https://flip.xyz/art/collections/boredapeyachtclub/summary), [World of Women](https://flip.xyz/art/collections/world-of-women-nft/summary), [Doodles](https://flip.xyz/art/collections/doodles-official/summary), and [XCOPY](https://flip.xyz/art/collections/xcopy/summary).

Admittedly though, it's the branding side as opposed to the art or the finance side of NFTs that really got Gary excited — he's even said: “I don't talk a lot about Bitcoin or the alternative currencies because I really don't understand that game. I very much understand why people wear Nike, Rolexes, buy Mercedes-Benz, . . and that's why I'm so very focused on NFTs because I think they represent social communication in a way that other things come natural to me. And that's where my focus is.”

Like all of us, Gary sees and understands NFTs through the lens of his prior experience, which in his case is media and branding. For him, NFTs represent an unprecedented opportunity for consumers to invest, not just passively through stock or whatever, but to directly, tangibly own a part of the images, people, and narratives that compose their favorite identity-forming brands. And if that doesn't make sense, then simply look at VeeFriends.

## VeeFriends

On the surface, [VeeFriends](https://flip.xyz/art/collections/veefriends/explore) is a 10,255 item collection featuring 268 hand drawn characters (by Gary Vee himself,) characters with alliterative names like “Adventurous Astronaut,” “Courageous Cockatoo,” or “Empathetic Elephant.” Below that surface; however, VeeFriends is about building a long-term franchise similar to Hello Kitty or Scooby-Doo, and doing that through “meaningful intellectual property and extraordinary community.”

![VeeFriends NFTs on flip.xyz](https://flip-blog-images.s3.amazonaws.com/gary-vee-veefriends-flip-2.jpg 'Source: https://flip.xyz/art/collections/veefriends/explore')

Let me just say, VeeFriends is excruciatingly elaborate, so hold on to your seats.

Part of the franchise vision is realized by having VeeFriends function like an alpha pass, similar to Proof Collective, except with VeeFriends the alpha you get is Gary himself. Everyone who owns a VeeFriend (series 1) gets a 3-year ticket to Gary's VeeCon, a four day conference that's "a mix of Davos and South By Southwest, a little of pop culture... a little of summer camp", and will be held for the first time on May 19th-22nd.

On top of VeeCon, certain rare VeeFriends NFTs grant special access to Gary. For instance, those holding a 'Mentor Meeting Mongoose', have access to three, two-hour personal mentoring sessions with Gary in NYC. Likewise, a 'Basketball Butterfly' grants access to a two-hour game of basketball with Gary Vee and four surprise guests — picture that: Gary sweating heavily in front of a Basketball-Butterfly-holder, arms raised high to block a shot, and through his choppy breathing he's still going: “by the age of 7, 80% of my activities outside were business.”

Genuinely though, the more I looked into VeeFriends, the more impressed I was — Vee friends is the NFT equivalent of a swiss-army knife, just when you think you've got it figured out, a hidden feature is revealed — like [VeeFriends Mini Drops](https://flip.xyz/art/collections/veefriends-mini-drops/summary), a sub-collection within VeeFriends that periodically airdrops NFTs to eligible VeeFriends holders (for instance, 'Spooky Vees' for Halloween-centric VeeFriends), but also, is more broadly home to various VeeFriends collaborations (like 'Goat's Arrival in Creature World' a collaboration with Creatures' [Danny Cole](https://twitter.com/dannycoleee), or 'Where My Goats Go' a collaboration with [Isaac 'Drift' Wright](https://twitter.com/DrifterShoots).)

![VeeFriends Mini Drops collection on flip.xyz](https://flip-blog-images.s3.amazonaws.com/gary-vee-veefriends-mini-drops.jpg 'Source: https://flip.xyz/art/collections/veefriends-mini-drops/explore
')

Hang in there — there's still ['Book Games'](https://blog.veefriends.com/book-games-game-play-rules-3a8b1ce25648) (which, either I don't understand, or which might loosely be a ponzi scheme, but basically, the gist is that Gary Vee book purchases are rewarded with NFTs that can be burned for other perks and rewards).

And, we can't forget about [VeeFriends Series 2](https://flip.xyz/art/collections/veefriends-series-2/explore).

If Vee Freinds Series 1 is about alpha, accessories, and access, then [VeeFriends Series 2](https://flip.xyz/art/collections/veefriends-series-2/explore) is Gary's heavy step toward actualizing a long-term franchise. Building upon the original characters from Series 1 (as well as adding in a few new characters,) Series 2 boasts increased detail in terms of rarity, poses, scenes, and way, way more permutations (55,000 items). Also though, Series 2 takes a sincere whack at the real world, introducing a [VeeFriends trading card game](https://blog.veefriends.com/meet-the-new-veefriends-series-2-collectible-trading-card-game-veefriends-compete-and-collect-6c31e39efdac) (and bringing Gary's life-long passion for trading cards full-circle.)

![VeeFriends Series 2 on flip.xyz](https://flip-blog-images.s3.amazonaws.com/gary-vee-veefriends-series-2.jpg 'Source: https://flip.xyz/art/collections/veefriends-series-2/explore')

We could go on, there's plenty more fine-details regarding VeeFriends and its myriad layers of content, but for now you get the basic picture.

## So&hellip;

I don't know if it's the fact that I've been reading and watching too much Gary Vee content, but I find myself, as I wrap up here, wanting to make some sweeping statement about Gary Vee.

Unfortunately, I cannot.

That's why this article is titled 'Gary Vee and The Grey Pill' — because no matter how much research one does on Gary Vee, it's hard to conscientiously draw a black or white stance on him and his work.

For one thing, Gary's a self-made multi-millionaire, a true sort of American-dream type of guy. And ok, he's got a divisive and possibly exaggerated personality, but that's a huge part of why he has succeeded; he commits to his own version of truth and he doesn't look back, or in his own words: “looking backward fucks with your neck.”

As for his involvement in NFTs, it seems imperfect but genuine and intriguing. After all, Gary went from being an observer to being a passionate contributor in the NFT space in 0 to 60 seconds. Nevertheless, VeeFriends and its sub-collections don't feel like a quick opportunistic cash-grab, but rather a sincere attempt at building out a long-term, albeit sprawling vision.

Personally, I was impressed with [VeeFriends](https://flip.xyz/art/collections/veefriends/explore), [VeeFriends Mini Drops](https://flip.xyz/art/collections/veefriends-mini-drops/explore), and [VeeFriends Series 2](https://flip.xyz/art/collections/veefriends-series-2/explore). Gary's NFT collections are way more intricate and thought out then I realized. Even the artwork for VeeFriends, which from a glance might appear low-effort, is quite thoughtful when you consider how it ties into the broader themes of positivity and community that he aims for with all his work.

![Screenshot of VeeFriends project organization](https://flip-blog-images.s3.amazonaws.com/gary-vee-token-organisation.jpg 'Credit: VeeFriends')

I will say; however, perhaps as a piece of advice to Gary even, that if VeeFriends (and its accordant sub-collections) are to succeed as a long-term franchise, then it wouldn't hurt to simplify things a bit. Not only is he spinning three separate plates with his three current collections, but each collection has myriad smaller and more fragile plates spinning inside it. I must have spent hours researching VeeFriends and the Book Games token system, and I still don't fully get how it works.

Maybe one day I can sit down with Gary, virtual or not, and he can clarify some of those VeeFriends nuances for me.

In the meantime, I look forward to seeing what he's got cooking in NFTs next. And for you, I hope you have gotten a slightly fuller picture of Gary as an individual and NFT enthusiast, or at the least, I hope you've been entertained — because regardless of whether Gary is your cup of tea, you've got to admit, he is certainly not singular, boring, or lazy — he is the grey pill.

---

_Disclaimer: This is not financial advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your own research. See [Flip's Terms of Service](https://flip.xyz/terms-of-service) for more details._


Breaking down the next step to the Otherside

Otherdeeds: Lay of the Land


“Break on through to the othersideeeee''

By now, many of us have seen _The Doors_-blaring, ape-slinging, pump up [trailer](https://twitter.com/yugalabs/status/1505014986556551172) for the Otherside. The thing is though, we’re not quite there yet . . . the otherside.

First came the release of [ApeCoin](https://flip.xyz/updates/ape-coin) on March 16th, then came the announcement of [the Otherside](https://otherside.xyz/world) on March 18th, and now, as of April 30th, we have [Otherdeeds](https://flip.xyz/art/collections/otherdeed/summary), the first entrance into the highly-anticipated Otherside.

However, before we can make sense of Otherdeeds, it'd be helpful to recap what exactly the Otherside is besides what we’ve gleaned from the pump up trailer and a supposedly [leaked pitch deck](https://bestpitchdeck.com/yuga-labs).

Otherside is a work-in-progress metaverse game that comes to us from [Yuga Labs](https://yuga.com), [Improbable](https://www.improbable.io), and [Animoca Brands](https://www.animocabrands.com). Dubbed the first ‘metaRPG’, a synthesis of MMORPG (massively multiplayer online role playing game) and metarverse games, Otherside is a game primarily connected to the BAYC ecosystem — although a key component of its allure is its promise of interoperability which will mean that theoretically any NFT (starting with BAYC, MAYC, BAKC, and CryptoPunks) will be playable via the SDK (software development kit.)

Now for the [Otherdeeds](https://flip.xyz/art/collections/otherdeed/summary), not only do Otherdeeds allow you to “participate in prototype builds, demos, and tests that shape the final game design” for Otherside, but also, they are the key to claiming land parcels within the Otherside, land parcels that will each have their own unique traits (dig into them [here](https://flip.xyz/art/collections/otherdeed/traits)): environment, sediment, and resources (including artifacts and ‘Kodas’ for a select few.)

![Otherdeed on flip.xyz](https://flip-blog-images.s3.amazonaws.com/updates-otherdeeds-flip-screenshot.jpg 'Source: https://flip.xyz/art/collections/otherdeed/summary')

Those familiar with MMORPGs will intuitively grasp the point of these land parcels — to extract and harness wealth that unlocks further in-game progress and experiences — but the Kodas, well the kodas are another matter.

Only 10,000 Kodas exist, and besides some rumors floated out of the ‘leaked’ pitch deck, as well as a cryptic mention in the Otherdeeds collection summary, all we know about the Kodas are that they’re some sort of celestial creature, an NFT creature at that, which are scarce and yet vital to the the Otherside’s lore and existence. Practically speaking, Otherdeeds containing Kodas (pictured below) go for big money.

![Colourful creatures from the Otherdeed world](https://flip-blog-images.s3.amazonaws.com/updates-otherdeed-kodas.jpg 'Source: Otherside.xyz/world')

In total, there will be 200,000 Otherdeeds pointing to parcels of in-game land, and each Otherdeed originally cost 305 ApeCoin to mint (which was also basically the first meaningful chance to spend ApeCoin given that the Otherside economy runs on ApeCoin.)

In terms of distribution, 100,000 Otherdeeds are being held back as future rewards for “voyagers who hold Otherdeeds and contribute to the development of Otherside”, while the other 100,000 Otherdeeds became available this past weekend on April 30th, 2022.

Of those 100,000 available, 10% are reserved for Bored Ape holders, 20% are reserved for Mutant Ape holders, 15% are reserved for developers, and 55% are reserved for the public — or that was the plan at least.

![Screenshot of percentages from otherside.xyz](https://flip-blog-images.s3.amazonaws.com/updates-otherdeed-percentages.jpg 'Source: Otherside.xyz')

Now with April 30th in the rearview mirror, we can say that the Otherdeed release and subsequent accumulation of deeds didn’t break down so smoothly.

Because BAYC and MAYC holders were given 21 days to claim their Otherdeeds, it wasn’t vital that they claim their deeds precisely on April 30th; whereas for non-ape-holding-folks, Saturday night was a black-friday-esque battle to scoop the remaining 55,000 Otherdeeds for-sale, a battle that entailed gas wars which sent Ethereum gas fees soaring to prices never before seen (up to 6000 gwei or $5000 dollars just to submit a transaction).

![High gas prices shown on bar chart for April - May 2022](https://flip-blog-images.s3.amazonaws.com/updates-otherdeed-gas-price.png 'Source: etherscan.io/chart/gasprice')

We’ve talked a bit before about gas-wars in our piece on [Bots](https://flip.xyz/updates/bad-nft-bots), but the gist is that the Ethereum network becomes competitively clogged when many people are trying to submit transactions at the same time. Thus, folks who can pay more for gas can cut in front of other peoples' spot in the transaction queue.

Needless to say, because many people either lost their chance to mint an Otherdeed or succeeded in doing so but spent outrageous sums on gas fees, the Otherdeeds mint has resulted in a lot of finger-pointing — some fingers pointed at Yuga Labs, some pointed at Ethereum, and others _pointed at those pointing fingers_.

Of course, shortly after the whole gas fiasco, Yuga Labs promised to refund lost gas fees and apologized for “turning off the lights on Ethereum for a while.” Yuga even floated out the idea that ApeCoin will “need to migrate to its own chain in order to properly scale.”

Twitter had a feast with the event. [Some](https://twitter.com/MarkBeylin/status/1520940083267964928?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1520940083267964928%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.coindesk.com%2Flayer2%2F2022%2F05%2F02%2Fotherside-and-the-future-of-nft-consolidation%2F) suggested that the gas war was an excusatory path to build out ApeCoin on its own chain. [Others](https://twitter.com/WillPapper/status/1520592312379658241?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1520592319828824064%7Ctwgr%5E%7Ctwcon%5Es2_&ref_url=https%3A%2F%2Fdecrypt.co%2F99156%2Fyuga-labs-sees-561-million-in-otherside-ethereum-nft-sales-within-24-hours) suggested the gas war could have been mitigated with better code (even Vitalik chimed in to disagree [here](https://twitter.com/VitalikButerin/status/1520621813209784321?s=20&t=aH40LGKWfzQVdPoty6c1Xw)). And more yet, some people were pointing out [the purchase of KYC-ed wallets](https://www.coindesk.com/layer2/2022/04/29/please-dont-buy-a-kycd-wallet-for-the-bored-apes-teams-otherside-mint/) to circumvent the two mint limit, or the way in which [plot #s related to geographic location of Otherdeeds](https://youtu.be/t3gj6cLShV4?t=1204) on the Otherside map (pictured below, you can explore the land map [here](https://otherside.xyz/explore).)

![Screenshot of Otherside map](https://flip-blog-images.s3.amazonaws.com/updates-otherdeeds-map.jpg 'Source: otherside.xyz/explore')

Gas wars and controversy aside, given the price of ApeCoin at the time of dropping Otherdeeds ($19), Yuga Labs did just fine off the Otherdeeds sale, netting close to $318 million.

Since the mint, Otherdeeds have done a whopping 247k Eth in volume traded while floor deeds (~ 2.8 Eth) and rare deeds (up to 300 Eth) seek to find their mark to market. And honestly, we generally try to keep these articles content-centric, but in this case, we’ve got to do a quick shill because there’s never been a more appropriate time to use [Flip](https://flip.xyz/art/collections/otherdeed/summary) — go nuts analyzing the [Otherdeeds Traits](https://flip.xyz/art/collections/otherdeed/traits) breakdown or play observorrrr and watch where the volume sloshes around under the [Otherdeeds Activity](https://flip.xyz/art/collections/otherdeed/activity) page. Oh, and also, if you hear anything else about the Kodas . . . let us know ;).

---

_Disclaimer: This is not financial advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your own research. See [Flip’s Terms of Service](https://flip.xyz/terms-of-service) for more details._


Doodles: Avoiding Death By Dilution


![Doodles Collection NFTs](https://flip-blog-images.s3.amazonaws.com/Doodles_+Avoiding+Death+By+Dilution_Img0.png 'Source: Doodles')

It doesn't matter if you're a creative director, you look at a collection like [Doodles](https://flip.xyz/art/collections/doodles-official/summary) and your brain inflates with ideas — you have these marshmallow-y cartoons dipped in warm pastels, a near-religious community, and a blue-chip brand — it’s a project begging for elaboration.

Meanwhile, that near-religious community of 62,000 members in the [Doodles’ Discord](https://discord.com/invite/doodles) are chiming in with grand ideas for a metaverse game, a token, and a follow-up collection.

If you created Doodles, what would you do? Do you take the money and run? Do you accept the partnership offers that begin to overflow your email inbox? Or do you buckle down and work on building out almighty utility.

This was effectively the situation Doodles leadership found themselves in following a sold out mint and months of steadily climbing into a double digit floor price. Voices both from within and outside the Doodles’ community were urging the project to expand.

Granted, because Doodles is led by a trio of heavy-hitters ([Burnt Toast](https://twitter.com/burnttoast), [Poopie](https://twitter.com/poopie), and [Evan Keast](https://twitter.com/evankeast)) they had the foresight to resist certain urges to rush, commodify, or dilute the project.

![Doodles NFTs](https://flip-blog-images.s3.amazonaws.com/Doodles_+Avoiding+Death+By+Dilution_Img1.png 'Source: Doodles')

In fact, the Doodles leaders were focused on doing things right from the very beginning. It started way back with the original designs for the Doodles artwork. [Burnt Toast](https://twitter.com/burnttoast), the artist behind Doodles, spent half a year fine-tuning the sketches, continually bouncing ideas off Evan and Poopie, and then further refining the doodles artwork. Co-founder, Evan has commented on this lengthy design process that while some collections will pump out their artwork in a month or two, the doodles trio spent “6-7 months obsessing about what a pfp looks like.”

You have to give them props here — each day they spent pursuing greatness instead of good-enough, they had to watch other less-methodical collections generate spark.

![Flip Doodle Listings](https://flip-blog-images.s3.amazonaws.com/Doodles_+Avoiding+Death+By+Dilution_Img4.png 'Source: Flip.xyz')

The same conscientiousness was applied with the team’s decision to not make honoraries, to not reserve rares for themselves (you can even see their thorough process for ensuring provable fairness on their [site](https://docs.doodles.app/provable-fairness),) or to temporarily close the [Doodles Discord](https://discord.com/invite/doodles) about a month before the minting date.

Closing the Discord especially was a risky move. Like closing the door on a party, they were effectively trading community quantity for community quality, (something we’ve now seen emulated with [Moonbirds](https://flip.xyz/art/collections/proof-moonbirds/summary) and their high mint-price.)

And while they’d re-open the Doodles Discord following their sold-out release on October 17, 2021 (at a 0.123 Eth mint price.), Doodles’ non-dilutive vision hasn’t withered.

![Flip Doodles Chart](https://flip-blog-images.s3.amazonaws.com/Doodles_+Avoiding+Death+By+Dilution_Img2.png 'Source: Flip.xyz')

Quite the opposite, post-release, the Doodles team basically doubled down on their vision and shipped new content for their existing holders; things like: [merchandise](https://shop.doodles.app), proposals in the [Doodlebank](https://forum.doodles.app/c/new-proposal-discussion/1) (a democratic treasury for development), multifaceted IRL events like [Heart Basel Miami](https://rsvp.fwb.help/heart-doodle) (and later, [Doodles SXSW](https://twitter.com/doodles/status/1506457398239657989)) and the release of [Space Doodles](https://flip.xyz/art/collections/space-doodles-official/summary).

[Space Doodles](https://flip.xyz/art/collections/space-doodles-official/summary) in particular, came at a time (early 2022) during Doodles’ development when it would have been totally normal for the team to pump out a follow-up collection that would expand their audience and allowance overnight.

But Space Doodles is not a typical follow-up collection — it doesn’t actually add more items to the Doodles collection — instead, it gives Doodles holders a chance to wrap their Doodles, effectively swapping them out for custom Space Doodles.

Each Space Doodle is backed 1:1 by an original Doodle, and builds upon the original artwork by encapsulating them in a Pixar-esque spacecraft that is teasingly said to be the first step in revealing the doodles ‘universe.’

![Flip Space Doodle Listings](https://flip-blog-images.s3.amazonaws.com/Doodles_+Avoiding+Death+By+Dilution_Img3.png 'Source: Flip.xyz')

Besides bringing fresh artwork to holders, Space Doodles also offers new traits (like ‘spaceship’, ‘nearest planet’, and ‘sector’), as well as animates Doodles so that they colorfully bounce around space to the tune of a personal audio track.

Keep in mind, because Space Doodles is not a separate collection but a wrapper for an existing collection, the project didn’t benefit from the financial boost of minting a new collection. Even Co-founder, Poopie, explained in an [interview](https://youtu.be/-5NeYlq6-Mw?t=2389) on Bankless, that “if we wanted to we could do an 8-9 figure drop with a new collection at the push of a button . . . but that doesn’t really achieve anything for us with building a long-lasting brand.”

And though Space Doodles certainly brought _value_ to the community (considering its floor price is 1.5 Eth above Doodles,) Space Doodles was less about money and more about uncompromised progress towards a vision—

—a vision where Doodle’s is much more than NFTs, a vision (according to Keast) where Doodle’s is a global “web3 entertainment company”.

Of course, the term ‘entertainment company’ is pretty damn broad — Walt Disney, Nintendo, Spotify, and MGM Resorts are a few of the multifarious forms an entertainment company could take — but considering the dedication of the Doodles team to date, we can only assume that whatever they’re dreaming up, has not only been well-thought-out, but just like the artwork, the Discord closure, and Space Doodles, it’s a vision that trades speed and short-term gratification for higher-minded values like consistency, loyalty, and perfection.

---

_Disclaimer: This is not financial advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your own research. See [Flip’s Terms of Service](https://flip.xyz/terms-of-service) for more details._


The collection that does more by doing less.

mfers: Don't Try


If NFT collections were people, then mfers would be the type of person who dances to the beat of their own drum.

The stick-figured ‘are ya winning son’ son slouched in their gaming chair, permutated with various backgrounds, headphones, outfits, and nicotine-inputs.

Yup, that's pretty much mfers — even though it's a minimal-effort collection — it wins by virtue of what it doesn’t try to be. At base, it’s a testament to the creator, [Sartoshi](https://twitter.com/sartoshi_nft).

## Sartoshi and the Mfers Story

Like many of us, Sartoshi got into NFTs with a blend of incentives – art, crypto, and money – though he did get in fairly early, early enough that he could casually trade CryptoPunks.

And while he credits CryptoPunks as making NFTs click for him, the more he evolved into a species of degen, Sartoshi found himself in awe of how seriously people take the NFT ecosystem. Being an artist himself and having some basic idea of how much work went into these NFT artworks, he couldn’t help but feel the tinge of an ironic wave swell up in him; Why did people make out NFTs to be more than their reality? According to his mfers [post](https://mirror.xyz/sartoshi.eth/QukjtL1076-1SEoNJuqyc-x4Ut2v8_TocKkszo-S_nU), people would say things like “omg this artwork is amazing” and he’d respond “ser you’re at a grocery store and that’s a box of cereal.”

Soon he’d discover that he wasn’t alone in his bimodal feelings toward NFT seriousness. He’d start making a name for himself by writing these cryptic tweets mocking not just NFTs but crypto culture — all though, done in a cheerful, satirical way that people really seemed to resonate with — and occasionally utilizing homemade memes of little stick figures (drawing inspiration from the ‘are ya winning son’ meme) to make his point.

![Original Mfers Doodles](https://flip-blog-images.s3.amazonaws.com/mfrs_+Don't+Try_Img1.png 'Credit: @sartoshi')

The doodles especially were a hit. Before long, he was encouraged to start listing them as NFTs, and so he did, posting them on [Foundation](https://foundation.app/@sartoshi?tab=created) for the minimum price of 0.1 Eth (some have now sold for as high as 10 Eth.) Many of his drawings iterated further on the ‘are ya winning son’ meme, while others went a step further with his own sarcastic flare. Ultimately though, he got to the point where he realized these little stick figure sketches _have legs_.

![mfers auction meme](https://flip-blog-images.s3.amazonaws.com/mfrs_+Don't+Try_Img2.png 'Credit: @sartoshi')

Weighing the opportunity to keep creating 1:1 NFTs or to try his hand at a 10,000 piece collection like CryptoPunks and Bored Apes, Sartoshi elected for the former, basically on the premise that more seats were needed for the growing community of like-minded, shitposting degens. He’d name his new collection ‘mfers’ both as an ode to the plurality of degens out there, and as a thematic wink to his beginnings as a shitposter where he commonly dropped a ‘mfer’ in there to lighten the tone.

Next, he got to work on the mfers design process: hand drawing the layers for mfers, brainstorming traits, partnering up with [WestCoastNFT](https://twitter.com/WestCoastNFT) to handle the tech side of things, and starting to think critically about the managerial and proprietary consequences that will accompany launching mfers.

With the artwork perfected (“nothing overly polished or overly computerized”) and the tech side wrapped up, finally, Sartoshi took his hands off the wheel — no official discord, no promotions, no roadmap, no Sartoshi as leader type of thing, and no IP (intellectual property rights) or Copyright reservations (mfers are CC0) that could stop mfers from creating derivative products/projects.

In abstract, you could think Sartoshi was merely being lazy, shedding responsibility for the project or whatever. But looking back, Sartoshi knew what he was doing, or at least he had the conviction: if he created sincerely relatable art, then the relay-process would take care of itself. And it did.

Besides a singular tweet the day before the mfers mint, Sartoshi did zilch in terms of marketing the collection, and yet, the 10,021 item [collection](https://flip.xyz/art/collections/mfers/summary) on the Ethereum blockchain sold out on November 29th, 2021, within ten minutes.

![mfers listings](https://flip-blog-images.s3.amazonaws.com/mfrs_+Don't+Try_Img3.png 'Source: Flip.xyz')

![mfers price chart](https://flip-blog-images.s3.amazonaws.com/mfrs_+Don't+Try_Img4.png 'Source: Flip.xyz')

And as you can see from the chart above, it took a few months before the larger NFT ecosystem took notice of mfers, but eventually, Sartoshi’s hands-off approach began to blossom, prices went on a run mid-February (peaking at a 4.6 Eth floor), and perhaps most importantly, mfers the world over found ways to dream up branches of community. Today, there's a mfers Discord (which, true to his promise, Sartoshi didn't start and never joined), [3D mfers](https://opensea.io/collection/3d-mfrs), [mferverse](https://mferverse.com), [mfers ahead](https://opensea.io/collection/mfersahead?utm_campaign=dsa_campaign&utm_source=google&utm_medium=cpc&utm_account=6961136327&utm_term=&utm_matchtype=&utm_campaignid=16543612221&utm_adgroupid=133840316825&gclid=CjwKCAjwsJ6TBhAIEiwAfl4TWFQrGNSy03ZXJV8k-JSeZlA-MZ5LmrWiv2KcaYEE-i1jBKMIYEaZdRoC4AgQAvD_BwE&wpsrc=Google%20AdWords&wpcid=16543612221&wpsnetn=g&wpkwn=&wpkmatch=&wpcrid=587237193345&wpscid=133840316825&wpkwid=dsa-19959388920&gclid=CjwKCAjwsJ6TBhAIEiwAfl4TWFQrGNSy03ZXJV8k-JSeZlA-MZ5LmrWiv2KcaYEE-i1jBKMIYEaZdRoC4AgQAvD_BwE), [mfers merchandise](https://mobile.twitter.com/mfersshop), [dead mfers](https://opensea.io/collection/dead-mfers), [ape mfers](https://opensea.io/collection/ape-mfers), [the mfer chicks](https://opensea.io/collection/mferchicks), [mfersdoinstuff](http://mfersdoinstuff.com), [crezyies](https://opensea.io/collection/creyzies), and so on.

![Creyzies mfer spin off art](https://flip-blog-images.s3.amazonaws.com/mfrs_+Don't+Try_Img5.png 'Credit: @CREYZIES')

## Why, Though?

At the moment, the mfers collection has done 35.1k Eth in volume and rests at 2.1 Eth floor price. Whereas with many other NFT collections we could point to these numbers and draw tentative causation to some utility or roadmap or brand collaboration, with mfers it's not as simple.

Of course, we could try to point to qualitative factors instead, like attention-paid to mfers line opacity, the fact of their collection title being undercase-d slang, or how they were made CC0 (and how no copyright restrictions might have reduced friction for derivative projects), but then again we’d probably be grasping for straws.

If anything, mfers excelled because of what they weren’t; extravagant, over-marketed, overserious . . .

In fact, mfers reminds us of some anti-wisdom the famous poet Charles Bukowski once gave:

“Don’t try. That’s very important: ‘not’ to try, either for Cadillacs, creation or immortality. You wait, and if nothing happens, you wait some more. It's like a bug high on the wall. You wait for it to come to you. When it gets close enough you reach out, slap it and kill it. Or if you like its looks, you make a pet out of it.”

Well, mfers don’t try, and still, 5.4k people (unique owners) have made a pet out of them.

---

_Disclaimer: This is not financial advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your own research. See [Flip’s Terms of Service](https://flip.xyz/terms-of-service) for more details._


The bold collection tackling virtual identity and expression.

Anata: New Identity, Who Dis?


NFTs get more strange by the day.

![Anata NFT GIF](https://flip-blog-images.s3.amazonaws.com/Anata_+New+Identity%2C+Who+Dis__Img0.gif 'Source: [https://www.youtube.com/watch?v=dxc0oCbxe8w](https://www.youtube.com/watch?v=dxc0oCbxe8w) ; Created on: gifs.com')

Released on April 22nd, Anata is a 2,000 item NFT collection on the Ethereum blockchain that aims to concretize NFTs as a form of identity with live, reactive, and interoperable digital art.

The brain-child of a collaboration between [bigdsenpai](https://twitter.com/bigdsenpai)’s team and [Hologram.xyz](https://www.hologram.xyz) (a web3 self-expression engine) — each Anata NFT can synchronize with webcam, phone camera, and microphone, so that Anata holders can appear embodied as their avatar on any video medium (whether that be Zoom, Twitch, TikTok, Facetime, etc,.)

Talk about immersive art . . . your every head, mouth, and eye movement will be picked up by your camera and then fluidly translated to appear as though it is the Anata speaking, the Anata scratching its head, or the Anata getting ready to sneeze.

![Anata NFT Layers](https://flip-blog-images.s3.amazonaws.com/Anata_+New+Identity%2C+Who+Dis__Img1.png 'Source: [https://www.youtube.com/watch?v=dxc0oCbxe8w](https://www.youtube.com/watch?v=dxc0oCbxe8w)')

More than just being a first in terms of NFT technology, Anatas were designed to contain layers of utility from day one — we should clarify, what follows is not so much Flip’s official opinion but more like conjecture we’ve drawn and paraphrased from an [extensive Anata demo](https://www.twitch.tv/videos/1453187845) on Twitch.

At the forefront, Anatas are about virtual agency and being able to express your digital identity via these unique anime-style avatars. After all, elements of pseudonymity are everywhere within crypto, whether it be alternate accounts on Twitter, cartoonish pfps, or people wearing masks and utilizing voice-changers during podcast appearances.

Wearing an Anata plucks many of these identity chords; it lets you filter your physical appearance while also expressing your sincere or ironic interest in anime art (art that, apparently, cost the team “a few lambos” worth to design and rig), as well as your membership in the Anata community and its accordant clout/social-signaling oomph.

Within this identity morphing ethos, Anatas are also meant to tackle the shortcomings of static NFTs by allowing holders to continually customize their avatar’s expression with emotes (like changing your eyes to be on fire,) voice modulators (with pitches ranging from absurdly deep to comically high,) and adaptable backgrounds (like this one pictured below, which has been layered in front of a Fidenza.)

![Anata NFT Artwork](https://flip-blog-images.s3.amazonaws.com/Anata_+New+Identity%2C+Who+Dis__Img2.png 'Source: [https://www.youtube.com/watch?v=dxc0oCbxe8w](https://www.youtube.com/watch?v=dxc0oCbxe8w)')

![Anata NFT Customizations](https://flip-blog-images.s3.amazonaws.com/Anata_+New+Identity%2C+Who+Dis__Img3.png 'Source:[https://www.youtube.com/watch?v=dxc0oCbxe8w](https://www.youtube.com/watch?v=dxc0oCbxe8w)')

Equally though, Anatas are about pragmatism — no more rushing pre-zoom-meeting to change your shirt or clean up your disheveled office backdrop — just sync with your Anata, and you have an engaging, presentable virtual self to project.

Ok, maybe not everyone wants to show up to a business video call embodied as an anime warrior, but still, we have to admit the general concept is intriguing.

Think about all the times you’ve been hesitant to hop on a video call, not just because of the preparation it takes but also because of the mental load it requires. Video calls, despite their convenience, can be mentally taxing events if you’re expected to appear overtly cheerful and professionally engaged (which, for people with low-key or introverted personalities, can require double the psychic effort; _appearing \_happy and engaged vs. simply \_being_ in those states.)

In theory, Anatas can act as relaxing virtual barriers that minimize mental load, relieve anxiousness and self-reflexivity, and paradoxically, allow one to be a better video version of themselves. In practice, well, we’ll see what happens . . .

![Anata NFT Flip Listings](https://flip-blog-images.s3.amazonaws.com/Anata_+New+Identity%2C+Who+Dis__Img4.png 'Source: Flip.xyz')

The team behind Anata explicitly admits that although their NFTs are imbued with pfp and video utility from day one, there will inevitably be use-cases for Anatas that they could not foresee. For this reason, they are sending 50% of the mint revenue to a treasury directed via governance. Their claim is: unlike many treasuries in DeFi, the Anata treasury will not be set up to solely grow, but rather to be continually burnt by spending funds on building out Anata further. And while the team already has some ideas for how they might expand the project — like making Anatas 3D and VR compatible — they’re hoping that the community of Anata holders will vote on the direction they want to see the project go.

And, considering the Anata mint-auction raised around 10.5k Eth (at a final minting price of 5.25 Eth,) burning the aforementioned treasury will take some serious, creative spending and, hopefully, result in exponentially more value for holders of Anatas.

---

_Disclaimer: This is not financial advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your own research. See [Flip’s Terms of Service](https://flip.xyz/terms-of-service) for more details._


Moonbirds: More Than Just A Price Moon


Moonbirds, a 10,000 item pfp NFT collection on the Ethereum blockchain, arrive as the latest project from [PROOF](https://www.proof.xyz) (a popular NFT podcast started by renowned venture capitalist [Kevin Rose](https://twitter.com/kevinrose).)

Just over a week since release and weighing in at 116k Eth volume traded, Moonbirds is the second project out of PROOF, second to [PROOF Collective](https://collective.proof.xyz), which is essentially a high-roller (originally a few Eth to mint a pass, now a 104 Eth floor) club with an exclusive discord group and premier, curated access to mints, events, and alpha for the NFT ecosystem.

In contrast to PROOF Collective, Moonbirds were PROOF’s first stab at a traditional pfp NFT collection, and were designed accordingly to be a ‘product playground’ focused on having fun, experimenting, and extending community benefits to a larger audience.

![Moonbirds Flip Listings](https://flip-blog-images.s3.amazonaws.com/Moonbirds_+More+Than+Just+A+Price+Moon_Img0.png 'Credit: Flip.xyz')

Artistically, the Moonbird collection is fairly simple, but simple in a deliberative way like that of earlier projects CryptoPunks and CrypToadz who utilized similar low-res pixelated designs. Nevertheless, we’re convinced it's the perks, not just the art, that’s driving their popularity.

What’s really got people chirping about Moonbirds is the ability to “nest” them, similar to staking, where you lock your Moonbird in exchange for rewards. Except, it’s a bit more sophisticated than staking; for instance, your Moonbird can achieve ‘new tier upgrades’ and ‘upgrade their nest’, both of which impact the rewards you accrue. What’s truly novel about this nesting feature is that it rewards people relative to the amount of time they've had their Moonbird locked. In contrast, many staking protocols or airdrops don’t account for time spent holding (e.g., BAYC’s [APEcoin](https://staging.flip.dev/updates/ape-coin) airdrop to holders; it didn't matter if you bought a Bored Ape two weeks before the APEcoin drop, you’d still get the same amount of tokens as someone who’d held for nearly a year.) If it works, this nesting feature could create a wicked, positive feedback loop that bolsters insane loyalty via rewarding people for their long-term holdership of Moonbirds.

![Moonbirds Nests](https://flip-blog-images.s3.amazonaws.com/Moonbirds_+More+Than+Just+A+Price+Moon_Img1.png 'Credit: Moonbirds.xyz')

It gets even more nuanced, though. The team has hinted that they want each Moonbird’s respective attributes to play some role in what rewards are allotted (for instance, founder Kevin Rose offered a hypothetical example where: if you have a Moonbird with a space helmet nested, you might be rewarded with admittance to a Space X Tour.)

Besides nesting, Moonbird holders will also gain access to ‘gated Parliament channels’ within the PROOF Collective Discord. But because the PROOF Collective discord was designed to be an elite, NFT club, they had to figure out how Moonbirds would engage with that side of PROOF. The solution was to create these ‘gated Parliament channels’ within PROOF Collective’s Discord, allowing both communities an opportunity to intermingle without diluting the exclusivity of PROOF Collective membership.

Additionally, the PROOF team has ‘Project Highrise’ in the works, a metaverse that distances itself from the pack as a “dramatic departure from the existing 'never-ending' worlds that feel like a digital ghost town,” and which Moonbird holders will have first access to. That’s really all they’ve provided for now; the team sounds incredibly excited and confident about ‘Project Highrise’, but also exceptionally careful about leaking details. Apparently, it's just that good.

Whatever they’re cooking up, the market seems to agree that Moonbirds are bullish indeed. After minting at a hefty 2.5 Eth Price on April 16th, OpenSea saw its highest daily volume in over two months, and since, the Moonbirds price has steadily gone north to where they are today, resting at a 30 Eth floor.

On the high end, some rare Moonbirds are fetching insane prices, like this rare bird pictured below on Flip, recently sold for a whopping 350 Eth:

![Rare Moonbirds NFT](https://flip-blog-images.s3.amazonaws.com/Moonbirds_+More+Than+Just+A+Price+Moon_Img2.png 'Credit: Flip.xyz')

Now, whether or not this momentum will last, that’s a multivalent question that would be hard to answer at this early stage for Moonbirds.

In an [interview](https://youtu.be/F4KFxSXflSc?t=2368) with Bankless, the team behind PROOF Collective and Moonbirds was rather explicit about the fact they’ve all built and sold companies before, meaning they saw no point in creating Moonbirds to simply be a quick turnaround and cash-out project. Quite the opposite, they declared that 100% of the capital raised from Moonbirds will go right back into building out the project and community long-term. Or, as Kevin Rose put it: “we’re swinging for the fence with this one.”

---

_Disclaimer: This is not financial advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your own research. See [Flip’s Terms of Service](https://flip.xyz/terms-of-service) for more details._


Welcome to Flip: Beta, your new favorite place to NFT


![Flip site and mobile example](https://flip-blog-images.s3.amazonaws.com/beta-email.png)

It is a privilege to introduce Flip into public beta today. The app is available now on desktop, as well as in both the Apple and Google Play App Stores.

You can Track your portfolio, Discover interesting collections and wallets, Follow your favorites, and more. And it's beautiful.

We want you to be able to wake up in the morning with sleep still in your eyes, and know that when you open Flip, you can see what's important at a glance. And when you sit down at your computer for a deep dive into the land of NFTs, you can get the full spectrum of information and alpha you crave.

![Flip site and mobile example](https://flip-blog-images.s3.amazonaws.com/beta-desktop.png)
Our team has worked hard for months to provide a first in class experience for NFTs. Flip is made by incredible people: Sam, Jennifer, Eric, Jay, Scott, Drew, David, Jack, Brock, and Brian. And maybe you. We are creating a world class NFT platform and a world class place to work.

We hope you will dig in. Download the app from app stores, and bookmark Flip.xyz. Create an account to get the full feature set — Following your favorite collections and wallets makes it even better, and the logged in experience will continue to improve.

Flip is completely free for all users. Have fun, no subscription or purchase required.

There is no perfect time to launch. There are always things you want to build before you show the world, bugs to fix, etc. But more than anything, we want Flip in your hands. We hope you'll be patient and work with us to help make Flip perfect. We will always value your feedback.

Let's go!

[Google Playstore Download](https://play.google.com/store/apps/details?id=xyz.flip.flipmobile)

[Apple App Store Download](https://apps.apple.com/us/app/flip-xyz-nft-tracker/id1600546296)


We take a deeper dive into the WoW community

World Of Women Pushing Up


Before being thrust into fame with the World of Women (WoW) collection, Yam Yarkai (the portugal-based artist behind WoW) was already making gynocentric [1:1 NFTs](https://opensea.io/collection/yam-karkai-art).

![WoW Founder Yam Yarkai](https://flip-blog-images.s3.amazonaws.com/World+Of+Women+Pushing+Up_Img1.png 'Credit: Yam Yarkai')

What she couldn't help realizing, though, was that 10,000 item NFT collections are the real locus of attention. Being both an artist and activist, she intuitively felt that if she was going to make a greater impact, then large, generative collections were the place to be.

From her viewpoint; however, many of these popular collections shared the fact of being created by males and, unrelatedly, depicted art that was unserious, like animals, cartoons, and light-hearted memes. Not that there’s anything wrong or less-than with that, but she was dreaming about a collection that could generate social movement, a collection where art, awareness, and activism can coalesce under one thoughtful roof, a collection that could empower women . . .

To aesthetically achieve this tone, she ultimately tried to create an ambiguous, universal, albeit beautiful profile of a woman that could be adorned with various accessories and outfits — but also, an open-ended, templatic woman who didn't rely on any ethnic, political, or religious signifiers. If she could balance the aforementioned without sacrificing art, hopefully, she’d be able to onboard/educate a whole generation of women into web3 and NFTs.

After performing a careful review of the pre-generated permutations, the resultant artwork is the crisp and colorful WoW collection that we are familiar with today. Themed as women dawning from seven alien planets (each with respective roles: adventurer, technologist, warrior, sorceress, biologist, linguist, and artist), you’ll notice that some of the women look eerily earth-like, others appear undeniably imaginative, all though embody an ineffable confidence.

![Flip showcase for WoW](https://flip-blog-images.s3.amazonaws.com/World+Of+Women+Pushing+Up_Img2.png 'Source: Flip.xyz ; Work: World of Women')

Of course, it wasn't just the art alone that actualized WoW, but also three other co-founders, [BBA](https://twitter.com/ape6743), [Toomaie.eth](https://twitter.com/toomaie), and [Raphael Mallavieille](https://twitter.com/raphfac), the latter of which is Yam’s husband, who helped usher the project forward. Specifically, Raphael played a vital role in the marketing of the collection. In an interview with [NFTCulture](https://www.youtube.com/watch?v=_IV2fVmDdco), Raphael recollects the early days of researching other successful projects and learning little subtleties about the NFT ecosystem. For example, he learned that one of the best ways to garner NFT interest on social media is not by tooting your own horn, but rather by regularly purchasing other projects' work and hosting giveaways.

## WoW’s Come-up & Cause

Released on July 27th, 2021, the WoW mint went live at a 0.3 eth price, and sold out cleanly within ten hours. Of those who jumped on early, [Pranksy](https://twitter.com/pranksy/status/1430765567229800448?lang=en), an influential whale in the NFT space, gave his stamp of approval both verbally and financially by minting 1000 WoW pieces.

There was very little in terms of a gestation period. Toss in a couple of substantial shoutouts from figures like [Pranksy](https://twitter.com/pranksy/status/1421789765662388226), [Ja Rule](https://twitter.com/jarule/status/1421058890448445440?lang=en), and [Gary Vee](https://twitter.com/garyvee/status/1420198998980403203?lang=en), and before you know it, WoW was sent soaring into higher price altitudes. Within two weeks post-mint, the collection was scraping at the ceiling of a 1 eth floor (in retrospect, the very beginning of price discovery.)

![Flip Analytics for World of Women](https://flip-blog-images.s3.amazonaws.com/World+Of+Women+Pushing+Up_Img3.png 'Credit: Flip.xyz')

Price, though, was only a fraction of the project’s success.

As we’ve mentioned, from the very start WoW was committed to making a change, and part of that change comes from 7.5% of primary sales going to the WoW Foundation, which supports female-centric charities like ([She’s The First](https://shesthefirst.org), [Too Young to Wed](https://tooyoungtowed.salsalabs.org/afghanistan-donations/index.html), and [Strange Cintia](https://www.gofundme.com/f/help-cintia-get-her-life-back-save-her-art)). Additionally, they have and continue to host countless charity auctions for groups like [The Rockflower Fund](https://www.rockflower.org) or [Code to Inspire](https://www.codetoinspire.org), all of which focus specifically on aiding and empowering women. It doesn't stop there, though —

Another 15% of all primary sales go toward the WoW Fund for Cryptoart. The WoW fund connects back to Yam’s original problem, being that 1:1 NFT artists have a tougher time getting exposure. And so, the WoW fund regularly purchases from and spotlights female NFT artists that are creating great work but could use an algorithmic boost. To sweeten the pot, WoW regularly [airdrops](https://www.notion.so/Worlds-of-Women-ArtDrops-7662ebc60bb54146b4bb5f53fa574188) works featured in the WoW Fund to WoW holders — but also, they’re working on setting up virtual galleries within Sandbox and Oncyber to further spread the reach of artists within the WoW Fund.

## WoW Galaxy

As interest in WoW grew, it became clear that there was a need for more spots in the community; thus, the birth of [WoW Galaxy](https://worldofwomen.art/wow-galaxy.html), a 22,222 item follow-up collection that gave sidelined and out-priced parties a chance to hop into the mix.

With 10,000 collectibles reserved for WoW holders and 2,222 for an allowlist, the remaining 10,000 Wow Galaxy chicks were released on March 26th, 2022, via Dutch auction starting at 3 Eth and finishing at 0.3 Eth.

![World of Women Galaxy NFT](https://flip-blog-images.s3.amazonaws.com/World+Of+Women+Pushing+Up_Img4.png 'Credit: World of Women Galaxy')

WoW Galaxy builds on the story and ethos of the original WoW collection, adding yet another ‘planet’ of women to the already seven planets outlined in their first collection.

Compared to the original WoW pieces, the WoW galaxy artwork goes a step further in terms of detail (literally, they offer 4k HD files on their website), throwing in a healthy dose of sci-fi and futurist tones. Embedded within the collection are 8 Champions & 8 Guardians (one corresponding to each WoW planet), effectively rares that were hand-drawn (as opposed to randomly generated) by Yam herself and which are progressively revealed to the community over time.

Like with the original WoW collection, a portion (10%) of primary sales go toward the WoW Foundation. Plus, holders get a similar host of benefits that include: an invitation to the WoW Gala (an IRL event), the ability to contribute through [DaWoW](https://medium.com/@WorldofWomen/dawow-a-first-step-into-world-of-women-community-governance-38c45089f1f7) (a DAO which provides nominal community voting power to WoW and WoW galaxy holders), ownership of the underlying artwork and IP (meaning: “you can use your WoW as your next business’ digital identity”) and much [more](https://worldofwomen.art/wow-galaxy.html).

## Moving Forward With Mass Appeal

World of Women has been remarkably active on the business and communications side of things.

Growing fast, the WoW team, now nine people, signed with legendary manager [Guy Oseary](https://variety.com/2022/digital/news/guy-oseary-nft-world-of-women-bored-ape-yacht-club-1235152084/) who also represents BAYC, Madonna, U2, and Red Hot Chili Peppers, and who played a key role in helping them with decentralized licensing rights that allow WoW holders to build brands on top of their NFTs.

Partnerships are piling up, including [Hello Sunshine](https://variety.com/2022/film/news/reese-witherspoon-hello-sunshine-world-of-women-partner-nft-movies-tv-shows-live-events-1235185212/) (possible movie or tv show in the works?), [CodeGreen_nft](https://medium.com/@WorldofWomen/wow-x-code-green-with-inna-modja-eecd3dfa52d9) (the first worldwide NFT exhibition), [Sandbox](https://cointelegraph.com/news/the-sandbox-partners-with-world-of-women-to-drive-female-education-and-mentorship) (a virtual land plot that will host a WoW museum, university, and academy), [Coinbase](https://twitter.com/coinbase_nft/status/1460705353281073154?lang=en) (launch partner for Coinbase NFT), [Jazwares](https://www.prnewswire.com/news-releases/top-nft-collective-world-of-women-names-jazwares-master-toycollectible-licensee-301510157.html) (toys incoming?), and [10:22PM](https://www.billboard.com/pro/kendra-jae-nft-series-1022pm-umg-world-women/) (music collaboration).

Plus, by now, they boast an impressive list of high profiles that have bought and promoted WoW, including names like [Farohk](https://twitter.com/farokh/status/1481527811336814594), [Reese Witherspoon](https://twitter.com/reesew/status/1484571176122740739), [MC Hammer](https://twitter.com/MCHammer), [Logan Paul](https://twitter.com/loganpaul/status/1429947548664426499?lang=en), and [Eva Longoria](https://mobile.twitter.com/EvaLongoria/status/1504510070402555912) to name a few. Just as well, they’ve been featured in [Rolling Stone](https://www.rollingstone.com/culture/culture-news/world-of-women-nfts-reese-witherspoon-1283724/), [The Washington Post](https://www.washingtonpost.com/technology/2022/04/06/women-crypto-nft/), and countless other mainstream news networks.

From the onset, Yam said their goal was to create a global brand and a global community. It seems like they're well on track for both of those ends.

Really, the question we’re left with is: given their success up to this point and the audience they’ve amassed in the process, where will they decide to go next, another planet, another collection, another cause?

---

_Disclaimer: This is not financial advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your own research. See [Flip’s Terms of Service](https://flip.xyz/terms-of-service) for more details._


We get a feel for the hectic ride the PP community has endured.

Pudgy Penguins: I Get Knocked Down, But I Get Up Again


Originally dreamt up by a team of four college students, [Pudgy Penguins](https://opensea.io/collection/pudgypenguins) are an 8,888 item NFT collection on the Ethereum blockchain.

The collection, popularized as pfps, features thick-necked penguins sporting outfit and accessory combos randomly generated from over 150 hand-drawn traits.

Of the 8,888 penguins, five are 1:1 (not randomly generated; instead, entirely hand-drawn by the artist.) These five now go for many multiples above floor price and include: the ghost costume, the shark costume, the opposite-facing penguin, the banana suit, and the pineapple suit.

![pudgie penguins NFT collection](https://flip-blog-images.s3.amazonaws.com/Penguins_Img0.png 'Source: Flip.xyz')

## Number Went Up

Publicly released (at a .03 Eth mint price) on July 22nd, 2021, Pudgy Penguins impressively waddled off virtual shelves and sold out within 20 minutes.

The success of their public sale was just the beginning, though, and would continue over the coming weeks as the penguin’s price went parabolic in early August.

This price rise was further fueled by the publication of a New York Times article: “[I Joined a Penguin NFT Club Because Apparently That’s What We Do Now.](https://www.nytimes.com/2021/08/12/technology/penguin-nft-club.html)”, on August 12th.

By the next day, the penguin’s floor price rose accordingly to 2.3 Eth.

It was an NFT-dream scenario. The cute, elliptic penguins received droves of mainstream media attention from CNBC, Bloomberg, and a host of other news outlets. A cherry on top being when [Stephen Curry](https://twitter.com/StephenCurry30), NBA star, joined the community and briefly changed his Twitter pfp to a Pudgy Penguin.

But after their burning moment in the spotlight, the penguin hype chilled out and the floor price ranged for months around 1 Eth.

Their next bullish wave would not come until late 2021 and early 2022 (topping at ~2 Eth floor) following a host of meaningful events, which we unpack in this article.

Today, April 12th, Pudgy Penguins are trading similarly at ~2 Eth floor; however, the data only provides partial-justice to their comeback story . . .

![Pudgie Penguins Floor Price History](https://flip-blog-images.s3.amazonaws.com/Penguins_Img1.png 'Source: Flip.xyz')

## The Crack In The Ice

Price action aside, the fact that Pudgy Penguins are still kicking is a firm testament to their digital kinship. After all, the community has been through a rollercoaster year with endless debate over leadership and direction.

The earliest Pudgy Penguins roadmap promised things like a radio station, rarity tools, charity auctions and monthly airdrops — but, those plans were later retracted as Cofounder [Cole](https://twitter.com/ColeThereum) [announced](https://discordapp.com/channels/864641203022200853/867732042325688350/881424676532912129) that they’d “destroyed the roadmap for legal reasons” and clarified, “Pudgy Penguins are just cute art, they are not investments.” Ironically, that too was eventually reversed and another roadmap emerged in the fall of 2021 with fresh promises for airdrops, a [childrens book](https://twitter.com/Senor_Peng/status/1439764419458715648), a [coloring book](https://twitter.com/Senor_Peng/status/1439764419458715648), and an [ice-fishing game](https://discord.com/channels/864641203022200853/867732042325688350/890086590506995782) in the future.

The aforementioned flip-flopping made the fall of 2021 an uncertain epoch for penguin holders — yet the community stuck together for warmth by waiting for the reveal of Lil Pudgys and Pudgy Presents (both of which were slated for late December.)

December was not what they’d hoped for, though. [News](https://nftevening.com/pudgy-penguins-nft-collection-in-disarray-the-projects-owners-come-under-fire/) broke midway through the month that Darth, also known as [@coldpizza_xyz](https://twitter.com/coldpizza_xyz), a key moderator in the Pudgy Penguins discord, had approached the founding team with hopes for a raise and the idea for a community wallet to collect royalties. Apparently, it didn't go well.

Darth took to Twitter spaces where he expressed distaste over being underappreciated (financially and team-wise) and that cofounder Cole allegedly offered a 1 Eth bribe to keep things quiet. In the end, Darth didn’t remain a moderator. And besides a brief public statement from the team, the founders tried to reposition attention toward their upcoming releases.

Still shaken from events of week’s past, on December 15th, claiming for the [Lil Pudgys](https://opensea.io/collection/lilpudgys) collection went live. They were equally cute as their predecessors, but prices reacted mildly and unassuredly. Perhaps many folks were still banking on the Pudgy Presents airdrop and the game promised in the redrafted roadmap.

However, the [Pudgy Presents](https://opensea.io/collection/pudgypresents) revealed on December 25th to similarly mixed reactions. The long-awaited present was: a fishing rod. Unfortunately, a spelling error made the item appear as ‘rog’ instead of ‘rod’, which you can imagine, spurred all manner of rug-pull jokes.

Penguin holders humorously and stoically made the most of these releases, but still there was no update on the fishing game.

## The Final Fissure

For brevity's sake, by the time January 2022 rolled around, the penguin community was exhausted with their leaders. Promises had been made, revoked, remade, and ultimately fumbled.

Holders hadn’t lost passion for the project, but they had lost their patience with those in leadership roles. Whether it be failing to scale, a lack of transparency, under-delivering on the ‘fishing rog’ airdrop, or the lack of an ice-fishing game, folks in the community generally felt that the penguins were yet to reach their full potential (especially, considering how well similarly slotted projects had done during the NFT bull run.)

On January 5th, The Pudgy Penguins leadership responded to community unrest by holding a democratic intervention. A poll was created so that Discord members could vote on whether cofounder Cole — who by this point had become the head of the Hydra — should leave the island.

![Pudgie Penguins Discord Drama Screenshot](https://flip-blog-images.s3.amazonaws.com/Penguins_Img2.png 'Credit: Pudgy Penguins Discord')

That same day, loyal Pudgy Penguins whale, [@9x9x9](https://twitter.com/9x9x9eth), dropped a bomb-shell [thread](https://twitter.com/9x9x9eth/status/1478909630164185089?s=20) on Twitter.

@9x9x9’s [thread](https://twitter.com/9x9x9eth/status/1478909630164185089?s=27&t=a4JLj5k1iVi1SE9InjNhlw) detailed various attempts to buy-out the collection, and how during this back-and-forth with the founders, they learned that the project’s funds were empty. All that money (supposed to be spent on furthering the project) was in the cofounders’ personal wallets, presumably serving other purposes.

When the Discord poll finally closed, Cole was enthusiastically voted off the island.

And while the Discord poll represented a much-needed victory, removing Cole from his leadership role was more a symbolic move than a solution.

What this period really showed, was just how much people loved and cared for the fate of their penguins.

Several more people came out of the woodwork during this time and offered to buy-out the project. Conversely, others started planning for a [Wrapped Penguins](https://metadrop.com/drops/wrapped-penguins) community.

![Pudgie Penguins Change Banner](https://flip-blog-images.s3.amazonaws.com/Penguins_Img3.png 'Credit: [@Takeshi48878925](https://twitter.com/Takeshi48878925)')

![Pudgie Penguins Wrapped Icon](https://flip-blog-images.s3.amazonaws.com/Penguins_Img4.png 'Credit: [@Vince_Van_Dough](https://twitter.com/Vince_Van_Dough)')

Ultimately, none of the initial buy-out offers found flight, and only a fraction of the community followed through with [Wrapped Penguins](https://metadrop.com/drops/wrapped-penguins) (although this attempt to wrap their penguins — effectively cutting off founders from future royalties and redistributing power through the formation of a Pengu DAO — was historic and venerable when we consider that most blue chip collections are centralized.)

## Floating Forward

Ever since ousting Cole, the community still needed one final push.

Finally, on April 2nd, 2022, it was officially confirmed that the Pudgy Penguins collections had been sold to entrepreneur [Luca Netz](https://twitter.com/LucaNetz) of Netz Capital for 750 Eth. Netz (who credits Pudgy Penguins for being his first purchase on OpenSea), along with [Cameron Moulene](https://twitter.com/cameronmoulene) and a host of stakeholders, were to form the new Pudgy Penguin leadership.

Since then, besides a nice pump in price (currently trading at ~2 Eth floor,) the community has been busy hopping into AMAs and picking the brain of their new leader.

Netz, a seasoned entrepreneur, has been patient about releasing roadmap details yet, citing the hard-learned virtue of taking one’s time, as well as underlining the importance of mystery and suspense when it comes to NFT releases.

Well, there was a brief announcement on April 9th regarding a raffle for a Pudgy Penguins Yacht Party at the F1 Miami Grand Prix, but for the most part, recent conversations have centered around defining the values of the community.

![Pudgie Penguins Yacht Party](https://flip-blog-images.s3.amazonaws.com/Penguins_Img5.png 'Credit: [@pudgypenguins](https://mobile.twitter.com/pudgypenguins)')

More generally, in an AMA on April 10th, Netz stressed that he hopes Pudgy Penguins can become a global brand and positively impact the greatest number of people possible (whether that be through toy initiatives, childrens books, or games.) One community member chimed in to add that cuteness is universal, and because Pudgy Penguins are undeniably cute, they might be the collection best poised to onboard the next generation of crypto-natives. Luca vehemently agreed: just because kids aren't currently the ones purchasing NFTs, doesn’t mean we should ignore their potential impact on the web3 space. This idea even prompted Luca to relay an interesting tidbit about focus groups regarding popular NFTs — apparently, they learned that kids react glowingly to Pudgy Penguins (while finding Bored Apes slightly scary.)

Whether that’s alpha or not, who knows. What’s clear, though, is that the Pudgy Penguin community, despite a tumultuous year, remain seriously hopeful about the opportunity to regroup and refresh their direction.

---

_Disclaimer: This is not financial advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your own research. See [Flip’s Terms of Service](https://flip.xyz/terms-of-service) for more details._


Framing Digital into Physical


Just over a week ago, the Flip team, with bellies full of New-Mexican breakfast burritos and brains tuned for unique aesthetics, rolled through [Art Vault](https://twitter.com/thomaart)’s ‘Networked Nature’ and ‘Saint Somebody: Technologies of the Divine’ exhibit in Santa Fe, New Mexico.

Like a group of students on a chaperone-less field trip, we quickly broke out in separate directions and scoured the two-story gallery.

What we saw was digital art, yes, but digital art that inverted our concepts of what a gallery could or should be:

‘Daily Times (Performer)’ by Siebren Versteeg, a digital canvas, refreshed each day with the front page of The New York Times, that is (throughout 24 hours) digitally painted over by AI (which, if you really leaned into, you could even see the AI’s virtual brush stroke marching along the canvas).

![‘Daily Times (Performer)’ by Siebren Versteeg](https://flip-blog-images.s3.amazonaws.com/Framing+Digital+into+Physical_Img0.png 'Work: ‘Daily Times (Performer)’ by Siebren Versteeg; Image credit: Brian Krogsgard')

[Peter Sarkisian](https://www.petersarkisian.com)’s ‘LINEAR9’, an installation comprised of nine resin sculptures projected over with 67 minutes of audio and visual featurettes. Each interactive sculpture containing an allegoric scene that, together, string a narrative of human evolution, discovery, and fumbling. Pictured below is a screenshot from the eighth of nine sculptures, an era where mankind finds himself cleaning up the mess of civilization — in a hazmat suit, nonchalantly tossing chunks of apocalyptic debris into a black hole that continually threatens to swallow his left leg.

![‘LINEAR9’ by Peter Sarkisian](https://flip-blog-images.s3.amazonaws.com/Framing+Digital+into+Physical_Img1.png 'Work: ‘LINEAR9’ by Peter Sarkisian; Image credit: [petersarkisian.com](https://petersarkisian-linear9.com/08)')

[Carla Gannis](https://twitter.com/carlagannis)’ ‘The Garden of Emoji Delights’, a digital triptych print that marries renaissance-esque imagery of sprawling lawns and picnics with modern iconography (including keyboard emojis that Gannis believes function as a “contemporary glyph system”.) The still version of this piece, seen below, is an homage to Hieronymus Bosch’s famous triptych [‘The Garden of Earthly Delights’](https://www.sothebys.com/en/videos/hieronymus-bosch-the-garden-of-earthly-delights); however, Gannis also created an [animated version](https://videoart.net/the-garden-of-emoji-delights/) to further play with and critique “the slippage of signifiers.”

![‘The Garden of Emoji Delights’ by Carla Gannis](https://flip-blog-images.s3.amazonaws.com/Framing+Digital+into+Physical_Img2.png 'Work: ‘The Garden of Emoji Delights’ by Carla Gannis; Image credit: David Beja')

We could go on; dozens of breathtaking installations, each distinct in their digital application.

As far as the space itself, the Art Vault was quiet, wide-open, surgically clean, and had skin-warming sun pouring in through two loading-dock windows. Overall, a nice place to meander with a group of friends and calmly digest a 900 calorie breakfast burrito.

By the time you leave, you're struck by just how much of your daily digital diet (including jpegs) comes from an isolated and standardized device. Constantly hunching before your iPhone’s blue light, it’s easy to lose a sense of awe for technology, but art galleries like this one are a punching reminder that _digital_ is not necessarily a replacement for \_physica_l, but rather, a complement.

You know what . . . let's run with that idea: _if digital art is a complement to physical space, then what does that mean for NFTs and galleries?_

## Bringing NFTs into Physical Galleries

Even talking about NFTs in physical space can be tricky because we have to consider what’s actually being displayed or referenced.

The NFT itself is not the work of art. Rather, the NFT is a superior, digital receipt pointing to the record and ownership of the artwork. So, unless we’re looking to display smart contract code on a blank white wall, we have to change our thinking about what it means to display NFTs physically.

Let’s say a gallery wants to show a CryptoPunk.

They could follow the [Art Basel Miami](https://decrypt.co/87941/nfts-and-crypto-art-fully-invaded-miamis-art-basel) approach and simply upload a CryptoPunk to a digital canvas (like the ones offered by [Blackdove](https://canvas.blackdove.com/digitalCanvas/65).)

![Crypto Punk and Doodles Art Showcasing](https://flip-blog-images.s3.amazonaws.com/Framing+Digital+into+Physical_Img3.png 'Image credit: Daniel Roberts/Decrypt')

Or, they could print and frame a lithographic copy, as [HOFA](https://thehouseoffineart.com) did for their [Portrait of an Era](https://thehouseoffineart.com/exhibitions/89/overview/) exhibition.

![HOFA London NFT Exhibit](https://flip-blog-images.s3.amazonaws.com/Framing+Digital+into+Physical_Img4.png 'Image credit: HOFA London')

Because most NFTs are designed for marketplaces that limit file sizes, the methods above would require higher-resolution copies for display. No big deal, the artist just makes a more detailed proxy for the original NFT, but it’s a caveat that requires clarification — a bit like how cereal companies clarify that the Honey-Nut Cheerios pictured on the front of the box are enlarged for advertising purposes.

And if tampering with the original artwork is too much, you could probably argue that galleries don’t even have to display a copy of the NFT artwork. Instead, have artists create a separate artifact that pairs with the NFT. Something akin to what [Taylor Good](https://twitter.com/taylorgood), also known as "[Warhodl](https://twitter.com/WARHODL)", did for a pop-up at Bitcoin 2021 where Good created physical soup cans symbolically tied to his NFT art.

![Warhodl sitting in front of his collection](https://flip-blog-images.s3.amazonaws.com/Framing+Digital+into+Physical_Img5.png 'Image Credit: [Warhodl](https://twitter.com/WARHODL)')

![Warhodl soup can collection](https://flip-blog-images.s3.amazonaws.com/Framing+Digital+into+Physical_Img6.jpg 'Image Credit: [Warhodl](https://twitter.com/WARHODL)')

And while that might seem annoying for artists — having to create a separate artwork to display your art — at the very least, it’s a chance for artists to add a further layer of personalization.

On the other hand, it’s the galleries who will genuinely have to wrestle with second and third-order consequences:

**How does NFT artwork affect the layout of the gallery?** Galleries can push traditional artists aside for some time and solely display NFT artists using digital frames like Unit London did for [NFTism: No Fear in Trying](https://unitlondon.com/whats-on/84-group-exhibition-nftism-no-fear-in-trying/). OR, they can utilize physical prints and a mixture of traditional & NFT artists as HOFA did for their ‘Portrait of an Era’ exhibition.

**If a gallery goes the route of digital canvases, then how many artists do they feature?** Unit London had up to 20 artists displayed on one wall at their NFTism exhibit. That might seem like a lot compared to traditional art galleries, but with digital canvases, there’s no reason you can’t have multiple artists sharing one wall or even one frame. Nonetheless, they’ll have to figure out the calculus for giving each artist a fair allotment of screen time.

**How do they handle payments/transfers for artworks?** Galleries looking to stack crypto could create and curate an interactive marketplace for their featured artists. In essence, you’d view the art at their gallery, _try on the shoe_, and then bid for it with crypto online. Conversely, galleries could remain old school and accept fiat via card or wire transfer. But, if they go the fiat route, they have to figure out the NFT transfer separately — perhaps like HOFA did where they’d provide you with a sealed envelope containing the NFT wallet’s seed phrase.

**How much commission does the gallery take?** Early on, we could see NFT commissions being relatively variable between different Galleries. Honestly, it depends how much time and money they’re putting into promoting artists vs. how much value they’re returning. Considering NFT exhibitions can display more artists per square foot, as well as save money on authentication and general overhead, it seems reasonable that artists will take home an increasing slice of the profit pie. Case in point, [Superchief](https://www.superchiefgallery.com), has opted to take a 15% cut of NFT sales compared to the ~ 50% cut typical of galleries.

## Overall, our gut says:

Galleries have good reason to be both cautious and excited about NFTs.

Sure, it might take them a few seasons to get used to NFTs and what that means in terms of business, organization, and finance. But once the logistical wrinkles have been ironed out, galleries could ultimately benefit from the tailwinds of cheaper management costs, superior authentication, and access to a whole new swath of artists.

If even for the meme, wouldn’t it be fittingly ironic if digital artists and NFTs became the catalysts that began a booming epoch for physical galleries?

We hope so.


The Scoop on Frosties


![Frosties NFT](https://flip-blog-images.s3.amazonaws.com/Frosties_Img0.png)

Another one bites the dust.

Last week, Ethan Nguyen and Andre Llacun, creators of the Frosties NFT collection, were arrested and [charged](https://www.justice.gov/usao-sdny/pr/two-defendants-charged-non-fungible-token-nft-fraud-and-money-laundering-scheme-0) with conspiracy to commit wire fraud and money laundering (up to 20-year sentences.)

Frosties is proving to be an unfortunate, albeit cautionary case study within NFT scams.

The Frosties collection had all the exoskeletal traits of a solid project. You had a lively community of close to 40,000 people, a portfolio of 8,888 profile-pic-ready, ice cream scoop NFTs, and a promising roadmap with plans to build a metaverse game, staking, and breeding.

And sure, one could argue that the Frosties’ creators’ anonymity was an early red flag, but then again, anonymity is not cause alone to avoid a project — many great crypto and NFT projects were, at one point, created anonymously. The internet requires trust.

On January 7th, 2022, the Frosties pre-sale went live and those fortunate enough to get on the whitelist finally got their Frosties. Hey, even the gas fees were refunded for whitelist participants. How nice of them! Folks accordingly took to Twitter to praise Frosties further.

The next day, on January 8th, everything went swimmingly. Within an hour of the public sale, Frosties had sold out all 8,888 NFTs at a mint price of .04 Eth.

By January 9th, the discord group for Frosties had mysteriously been disbanded and a cryptic tweet reading: “I’m sorry” appeared shortly before the Twitter page was deleted as well. Seasoned NFT collectors immediately recognized this as bad news, swallowed hard and moved on, while many newbies remained hopeful that this was just some big misunderstanding.

However, any remaining hope was lost when a screenshot of an alleged message to a Frosties community moderator from Nguyen appeared on Twitter. The message began: “I know this is shocking, but this project is coming to an end. I never intended to keep the project going, and I don’t have a plan for anything in the future”. See the rest below.

![Frosties Twitter Post](https://flip-blog-images.s3.amazonaws.com/Frosties_Img1.png)

Meanwhile, $1.1 million worth of Eth was being quietly whisked away from the Frosties project wallet. Utilizing address hopping, peel chains, and mixers like Tornado Cash, the funds were broken down into smaller balances and laundered to obfuscate their final destination. Perhaps some of this money was going toward the creation of a new NFT project, [Embers](https://embersnft.com/), by the creators of Frosties.

Ironically, this attempt to hastily launder Frosties’ funds later provided prosecutors with the ant-trail of evidence they needed to help take down the creators. One person who helped investigate the Frosties case, Mike Fasanello, then director at Blockchain Intelligence Group, said, “The digital assets space is proving to be a more transparent system than fiat could ever hope to be.”

Does this mean the Frosties fallout could be interpreted as a net-positive event for the NFT space?

Possibly.

On the one hand, the Frosties creators being caught could act as a warning call, hopefully dissuading potential rug-pullers and scammers within the NFT space. On the other hand, it could help dispel the mythic belief that crypto is a blessing for criminals and money launderers.

In the meantime, several Frosties investors are busy attempting a bottom-up repair of the community by wrapping the Frosties tokens and spinning a new collection called ‘Cutie Pies’. Given the momentum loss, it won’t be an easy road, but more power to them if they pull it off.

Needless to say, Frosties is a cautionary reminder — both a reminder that we’re early and that part of _being early_ means wrestling with danger, but also a reminder that not all criminals exude evil outwardly; some of them wear cute, ice-cream scoop NFTs as their profile picture.

Stay safe out there, Flip Family.


A exploration of the rational theory of art

The Art of Measuring Art


![Digital Art Graph](https://flip-blog-images.s3.amazonaws.com/The+Art+of+Measuring+Art_Img0.png '(Image Credit: Herbert W. Franke)')

Art NFTs are not like mathematics. Anytime you're dealing with art, there’s a limit to quantifiables. Sure, you have metrics like size, symmetry, and color, but generally speaking, aesthetics evade statistical analysis because subjectivity gets the final word.

In a previous [post](https://flip.xyz/updates/ruminations-on-pfps), we discussed aesthetics and what makes a pfp NFT valuable – and why, for example, CryptoPunks’ minimalist resolution makes for perfect profile pictures. It’s simpler with pfps because they have physical constraints on their design (they have to be jpegs visible and distinguishable from within a profile picture circle.) But what about fine art, 1:1 pieces, and deeply abstract NFTs — what are your metrics, then?

When looking to flip high-art NFTs, judging aesthetics is rarely as simple as finding what _you_ like — there is a whole swirling reality of individuals out there, all with unique tastes and amorphous free-will. You can have perfect conviction about a collection’s community and roadmap, and yet, sometimes the art just doesn't click with a wider audience.

Wouldn’t you love a more objective approach for evaluating the aesthetics of NFTs?

Well, Herbert Franke _might_ have an answer.

With over 50 years of computer art experience, Herbert Franke is an authoritative voice in the digital art world.

In fact, Herbert is so much a computer artist that he refers to his wife as his ‘external hard drive’. This guy was making computer art long before there was Dmitri Cherniak or Snowfro or Beeple — he was making computer art back in the 1950s with analog computers and cathode ray oscillographs. He’s also one of the oldest people to have NFTs listed on [OpenSea](https://opensea.io/collection/herbertwfrankelissajous), a notable Science Fiction writer, a philosopher, a theoretician/professor, and a cave researcher. Today though, we’d like to focus on an underappreciated aspect of Franke’s career, namely, his work on a [Rational Theory of Art](http://lastplace.com/EXHIBITS/Franke_Chang/franketheory.htm), a theory which might help explain why certain NFTs work aesthetically and others just don’t.

## Franke’s Rational Theory of Art

For Franke, part of the aesthetic answer lies within our brains and the way they process information.

Similar to a computer, our brains are constantly curating information via filtering and processing.

Moreover, Franke believes that all great aesthetics share a certain balance of information that matches our brain’s particular processing power.

In Franke’s own words, “occasionally a person comes up against an information source that offers a flow of information, in which the complexity is in perfect agreement with the abilities of the processing system,” and that “such patterns or stimuli are seen to be pleasing.”

You see, he’s convinced that art is the experience of a perfect flow of information, but also that art is not merely accidental. For Franke, art can be rationalized — your Art Blocks and Ringers are beautiful because they incorporate a scientifically-based amount of information.

In an attempt to provide actionable metrics, Franke posits: the key to aesthetically pleasing artworks is that they contain roughly 16 bits per second worth of information — which also happens to be the conscious brain’s natural processing speed (at least according to psychological research in the 1960s.)

According to his theory, an information flow of 16 bits/second matches the conscious brain’s processing power and thus leads to interest, whereas significantly more information leads to irritation and significantly less leads to boredom. This is intuitive, to a degree — art (or really any content for that matter,) that is too detailed risks annoying us, and art that is not detailed enough risks boring us.

What’s key here is not just the total amount of information, but rather the speed at which the observer naturally absorbs the information. Is the information diffused, spread out like a Pudgy Penguin, or packed densely like a Fidenza?

In the case of pfp NFTs, you probably want something of low-moderate information but spread out so that even when it’s viewed from a miniature profile picture circle, the major contextual details don’t end up blurred.

On the other hand, with high art NFTs you’ll want aesthetics leaning toward higher information but still obeying a level of moderation in terms of how that information is distributed (perhaps because even with high art NFTs, the artist or creator has to account for the medium of display, i.e., most NFTs are viewed for the first time on small screens, whether that be an iPhone or a laptop — the viewer isn’t spending lots of time scanning over an NFT as they would with a wall-length painting at a physical gallery.)

Go through the top-performing NFT collections and see if this holds true: are the best performing always the most detailed or the most simplistic, or are they somewhere in the middle?

Don’t worry too much about the specific quantity of 16 bits/second. Franke himself even admits that “the measurement of the amount of information in an artwork is not easy, although possible in principle”. . . aka, why this is a _theory_ and not a _law_.

Franke’s Rational Theory of Art is not a golden ticket for creating, collecting, or speculating on art. What it may be helpful for is validating or repudiating intuitions about an artwork’s aesthetics.

And at the very least, Franke’s theory should give you an interesting rebuttal the next time your friends question why you spent 10 Eth on [insert questionable NFT art collection]. Simply say to them: 16 bits per second, friend, 16 bits per second.

---

_Disclaimer: This is not financial advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your own research. See [Flip’s Terms of Service](https://flip.xyz/terms-of-service) for more details._


Welcome to our first independent board member!

Ali Goldstein Norup


We are extremely excited to announce Ali Goldstein Norup has joined the Flip family as an independent board member.

We say this sincerely: Ali’s a rare, polymathic person. She’s like that one college professor who you find yourself intellectually raving over. When she speaks, you listen, not because your grade depends upon it, but because something in your primitive brain perks up and says, hey, brace for impact, knowledge incoming.

She’s been everywhere, man.

From fine art → business management → asset management → two-time founder (one bootstrapped, one venture-backed) → fintech entrepreneur in residence → to where she is today as Head of VC & startup ecosystem for Google Cloud, Americas.

Ali’s a perfect person to guide Flip from the board level.

She has extensive business, finance, and startup experience, as well as a wealth of experience with mentoring over 40 companies globally, focusing on their OKRs, KPIs, and startup narratives/visions.

It doesn’t hurt that she’s well-plugged into both the crypto and the art world with a hyper focused lens for understanding the economic, technological, and community-based aspects of NFTs.

Having begun her crypto journey in late 2016, she’s earned her stripes within the space. When NFTs found their first waves of mass adoption in 2020/21, she astutely recognized where various nodes of industry were connecting.

Given her start in fine art (she studied Art History at Northwestern University and worked for years within the sector, for instance, at the prestigious Whitney Museum of American Art in NYC and with The Armory Show and Volta) NFTs aesthetically make sense to her. But also, NFTs make sense to her in terms of tech and finance.

In particular, she’s excited that with NFTs and on-chain tech, art (which formalistically and historically eludes objective measurement) can now be constantly and verifiably “priced for perfection.” This is what happens when you get an art-finance-data-tech nerd talking about NFTs.

She’d seen from the engine room how art’s distribution was subject to friction from institutional gatekeepers; besides issues of pricing, the art world has historically constructed barriers between artist, broker, and buyer. Selling ‘good art’ was never as simple as being creative. Buying ‘good art’ was never as simple as having the money. And for Ali, “it’s all about removing the barrier.” With NFTs, theoretically, anyone can create, collect, and speculate with a basic crypto wallet — that’s one massive barrier removed. CeFi to DeFi and voila - art owner!

We’ve now used the word ‘art’ 17 times throughout this article; however, we, nor does Ali, want you to get too hung up on NFTs solely as they relate to art. In fact, that’s yet another reason we’re thrilled to have Ali on our side, namely, that she gets it . . . it being that:

1. Art is just the beginning for NFTs (the future will more broadly include collectibles, fractional shares, communities, etc.)

2. There’s increasing multifurcation within the NFT space (it’s an industry splitting under innovative pressure, and those split-ends, themselves, are splitting as well — someone (wink, Flip) needed to braid together various NFT marketplaces, on-chain analytics, and social aspects.)

3. The real futurist play here goes beyond just the jpegs and into the data. After all, that's a large part of what Ali excels with at Google Cloud, advising companies ([web3 included](https://cloud.google.com/blog/topics/financial-services/google-cloud-launches-dedicated-digital-asset-team)) on how to leverage their data to better understand their market and thus build the best business/product available. If data is the key to maintaining a leading relationship with the future, Ali’s hopeful because she sees Flip as being the informational frontier for NFTs. Whether it's by seeing who’s buying, what they're buying (at what price), or how much and how fast they’re buying, Flip can provide its users with asymmetric hints about the direction NFTs will take tomorrow, next month, and maybe even next year.

So, ya, to say the least, we’re delighted to have Ali as a part of the Flip family.


Take a dive into the strange world of virtual galleries

Virtual Art Galleries Hit Different


It doesn’t matter if you're a collector, a speculator, or an artist, the question of how and where to display your NFTs only becomes more relevant with further adoption.

It seems intuitive that not every artist can get their NFTs displayed in digital frames at Art Basel, not every speculator wants to swap out their profile picture of their beloved dog for a Bored Ape, and not every collector wants to/can afford to make printouts of their favorite NFTs.

What happens then . . . once the dead collections have been separated from the blue chips, where do all these high-value NFTs end up for display?

One possible answer is that they end up being displayed within virtual art galleries.

In this article, I take a dive into the world of virtual art galleries and ask myself the question: are virtual art galleries worth getting excited about?

## Testing, Testing

Faced with dozens of different metaverses and hundreds of virtual galleries within each respective metaverse, I realized that, at some pragmatic point, you have to close your eyes and pick. So I did.

Starting with [Oncyber](https://oncyber.io)’s platform, Justin Aversano’s exhibit for [Twin Flames](https://oncyber.io/twinflames) might have felt pretty standard, but standard in a good way. The space is open, tastefully modern, and optimistic. It’s traditional without being so grand or flashy that it hypnotizes you away from the twin-themed photography. For the world of NFT photography, it’s a success but maybe not revolutionary in terms of configurative risk-taking.

![Twin Flames Virtual Gallery](https://flip-blog-images.s3.amazonaws.com/Twin+Flames.png 'Twin Flames Oncyber')

Twin Flames (Oncyber)

Nevertheless, I enjoyed the aforementioned exhibit much more than some of the galleries on Cryptovoxel or Decentraland. That might have to do with the fact that people pay significant sums of money to purchase plots within those metaverses (~2 Eth for a cheap plot in CryptoVoxel and ~3.5 Eth for a cheap plot in Decentraland) and then possibly pay even more for people to design their plots for them.

Within [Cryptovoxels](https://www.cryptovoxels.com), I visited [Green Fuse’s virtual gallery](https://www.cryptovoxels.com/play?coords=S@26E,22S) for British painter Hughie O'Donoghue:

A two-story minecraftian structure composed of psychedelic glass blocks. As you enter, an audio clip starts playing in the background, “painting is a process,” Hughie says over and over again. Looking straight ahead, six of Hughie's works are pasted to the back wall but you’d need to get nose-close to see them in any detail. You can go upstairs and find an unmanned DJ booth with Green Fuse’s logo blown up behind it, a single Hughie painting hanging from the ceiling, and a gaping hole in the floor (a hole which seems more haphazard than it is an artistic choice.) All to say, the whole gallery itself felt in process . . .

![Green Fuse Gallery](https://flip-blog-images.s3.amazonaws.com/Green+Fuse.png 'Green Fuse Cryptovoxel')

Green Fuse (Cryptovoxel)

I figured it wouldn't be right to survey virtual galleries without checking out what the big guys had to offer. So, my next stop was [Sotheby’s](https://play.decentraland.org/?position=52,83) gallery in Decentraland, which I should add repeatedly crashed my browser until I downloaded firefox. I did finally get into the building, only to realize the doors for the gallery were locked up. Fitting, but as far as I could see from the lobby, Sotheby’s went the route of hyperrealism and produced something closer to a dental office reception area.

![Sotheby's Virtual Gallery](https://flip-blog-images.s3.amazonaws.com/Sotheby's+Virtual+Lobby.png "Sotheby's Decentraland")

Sotheby’s (Decentraland)

Left with a bad taste in my mouth from Sotheby’s, I irrationally concluded that I’d seen enough of Decentraland. Instead, I went in search of some degen galleries . . .

Back on OnCyber, hope was revived again by @[freezecorleone](https://twitter.com/freezecorleone), a popular french rapper’s [Meta Trap House](https://oncyber.io/crypto-trap-house) — you enter the Blade-Runner-esque studio to be greeted by a dancing, fish-headed stick figure, and a digital Doberman Pinscher. To your left, seated on the counter is a monkey smoking a joint, and looming in the corner of the room is a giant CyberKong VX Gorilla. The walls are splashed with a wide array of NFTs that Freeze owns and playing through your speakers (his speakers?) is Freeze’s newest song on Spotify. It’s maximalist but entertaining.

![Meta Trap House Gallery](https://flip-blog-images.s3.amazonaws.com/Meta+Trap+House.png 'Meta Trap House Oncyber')

Meta Trap House (Oncyber)

I’ll spare you another lengthy description, but if you want to get a taste for some well-curated, high-rolling collectors galleries, it's worth checking out [6529](https://twitter.com/punk6529)’s (link) [AB+1](https://oncyber.io/6529ab) and [Cyber Friends & Family gallery.](https://oncyber.io/void)

![Cyber Friends & Family Gallery](https://flip-blog-images.s3.amazonaws.com/Cyber+Friends+and+Family.png 'Cyber Friends & Family Oncyber')

Cyber Friends & Family (Oncyber)

That’s enough for now at least.

And as I wrap up here, I do so with full admittance that sampling a few dozen galleries leaves me in no position to make significant claims. The virtual gallery space is as varied as the cereal section in your local grocery store. Nevertheless, I’ve tried to separate some of the signals from the noise:

On the one hand, it seems that NFTs necessitate the continued existence and proliferation of virtual art galleries. After all, the virtual art gallery is imbued with utility, you can slide your way around 3D virtual space, and with a simple mouse click or hover, you can get direct information regarding an artwork’s history/provenance, listing, and marketplace — in effect they take art display to another level where even small spaces can double as museums.

I feel undecided on the idea that artists would or should be flocking to build their virtual galleries. The reality seems that some of the best galleries I came across were those produced on free platforms by collectors. It was the collectors who took risks, popped wheelies, and leveraged these virtual platforms for displaying their NFTs. Meanwhile, artists and art brokers seemed to play things safe, recreate physical frameworks in a virtual form, and basically drive below imagination’s speed limit.

Does this mean virtual galleries are a collector’s game?

It’s too soon to say.

I believe part of what I witnessed is that artists, especially the big kahunas, haven’t yet transferred into the virtual galleries because they see no need to (yet.) Perhaps they’re comfortable with their physical galleries, more typical website displays, and marketplaces. Or, maybe they’re interested but waiting patiently for the metaverse space to converge on fewer points of entry, or better user experiences for setup.

It seems important to point out that virtual galleries, no matter how convenient and sensorily immersive they can be with NFTs and VR, are a separate beast from physical galleries, or typical web galleries. I think galleries are as much about showing art as they are about feeling the bass from some generic techno song pumping through a tight retail space; as much about shaking the sweaty hand of an anxious, debut artist; and as much about awkwardly locking eyes with a mildly drunk art buyer who didn’t want to but showed up anyway.

Virtual galleries still have a long way to go; however, they are undoubtedly a way to experience the NFTs you love, but at another level.

Happy flipping,

The Flip Team


A Lucky Day For Bored Ape Holders


In a previous blog post, we talked about the increasing criterial pressure for [pfps](https://flip.xyz/updates/ruminations-on-pfps) to come with some form of utility.

Here we are, late march, and it’s all about ApeCoin.

Yesterday Yuga Labs and BAYC announced a monumental drop with ApeCoin. Today the airdrop is live and major exchanges have already listed the monkey token.

ApeCoin was set up in collaboration with Yuga labs but is not technically owned or run directly by them, and is administered by a DAO.

The APE Foundation is a steward set up to act “not [as] an overseer, but [as] the base layer on which ApeCoin holders in the ApeCoin DAO can build.”

As the ApeCoin piggy bank, ApeCoin DAO has plans to fund development of games, events, merch, and even a decentralized NFT marketplace, but more broadly, will ensure that the community gets to vote on its own direction rather than The APE Foundation or Yuga Labs ruling with a heavy club.

The tokenomic breakdown of the one billion ApeCoins will favor some more than others with: 16% of tokens going to Yuga Labs (6.25% of which will be donated to the Jane Goodall Legacy Foundation, a sort of monkey charity), 14% going to launch contributors, 8% going directly to the four original founders of Yuga Labs and BAYC, and the remaining 62% going to the community (Includes BAYC and MAYC holders, as well as tokens for DAO treasury and resources)

![ApeCoin Pricing Distribution](https://flip-blog-images.s3.amazonaws.com/ApeCoin+Distribution.png)

If you're wondering how many ApeCoins some folks got in today’s airdrop: BAYC holders receive 10,094 tokens per NFT, MAYC holders receive 2042 tokens per NFT, BAYC + KC holders receive 10950 tokens per pair, and MAYC + KC holders receive 2898 tokens per pair.

The token has multiple stated utility functions:

ApeCoin acts as a special access key, an incentivization tool for developers, a governance token for ApeCoin DAO, as well as a form of currency for BAYC-related products and services, including the game ‘Benji Bananas’ from Animoca Brands and nWay.

More generally put, the purpose of ApeCoin, according to co-founder of Animoca Brands and ApeCoin DAO board member Yat Siu, is that “the BAYC community … will reach much larger audiences due to the fungible and transferable nature of ApeCoin.”

You can almost feel the roving eye movements of similarly slotted NFT projects — many will be watching to see whether ApeCoin truly enhances or detracts from the already successful BAYC community. At the moment it’s still early and rather unclear. In terms of the past 24 hours, the floor price for BAYC has shot as high as 108 Eth, drooped as low as 77.5 Eth, and now rests at roughly 88 Eth.

With a host of new money sloshing around in the space and the ApeCoin price currently hovering between $7-10 (indicating a Fully Diluted Value of over $8.7 billion,) it will be especially interesting to see how tokens get distributed over the coming days and weeks.

We’d love to hear your thoughts.

Happy Flipping,

The Flip Team


Understanding the world of bots and how they affect NFTs

Bad Bot, Bad Bot, Watcha Gonna Do?


Whether it be soul-crushing customer service bots, or complex, algorithmic trading bots . . .

Bots are nothing radically new, nor are they inherently bad. Bots are just software. Specifically, software that automates an otherwise human (manual) task across the internet.

We’re positive on automation as a technological path. Automation at its best enables efficient markets. Throughout crypto, protocol level and independently operated bots are being used to enable efficient markets. Flashbots, KeeperDAO, CowSwap and others are working alongside users to dampen negative outcomes of MEV ([Miner Extracted Value](https://research.paradigm.xyz/MEV)) within blockchains. Oracles like ChainLink also enable more accurate aggregated pricing for assets, which allows more efficient bot-driven arbitrage across markets. On the simpler side, there are benign bots designed to notify users about upcoming mints, notable NFT sales, and more (part of our domain here at Flip).

However, not all bots are altruistic. There are indeed myriad 'bad' bots that create a sink on users' time and money. In DeFi, the infamous “sandwich attack” comes to mind, where the bot takes advantage of block ordering to give the trader the worst possible (but tolerated) slippage.

‘Bad’ bots are becoming more prevalent within the NFT space as well, a relatively fresh market with an abundance of manual processes begging to be optimized or exploited.

Some of you already know what we’re leading toward — there’s a surreal dread that comes with losing out on a hotly anticipated mint, or a close auction, to a bot. It hits you in the solar plexus, reminds you that you're carbon-based and that you just got duped by an inanimate software program.

Those are the type of bots we’ll be covering in this article, the ‘bad’ bots of the NFT space, as well as a discussion of potential remedies to them.

## Bad Bots & NFTs

### You’ve got your Scalpers:

Scalper bots are best known for being used in the rare sneaker market where they rapidly buy out a limited supply of Air Jordans and then relist those sneakers (at a premium) on a secondary marketplace.

Now, those scalper bots are finding a new digital niche within NFTs.

For example, one notable scalper bot controversy occurred with the Time Magazine NFT launch in September 2021. Scalper bots essentially bought up the Time collection in a matter of minutes. Even though each person was restricted to buying 10 Time NFTs at the most, the scalper bots found a way around the restrictions and scooped up many of them. Within a few hours, the lion’s share of the Time NFTs (known as TIMEPieces) were relisted on the secondary market at 30x above the minting price; the 'fair’ mint had failed.

Truthfully, we don’t care how fast your trigger finger is, you’re going to have a hard time minting faster than a scalper bot. In the Time case though, it wasn't just the speed of the bots that allowed them to soak up the mint but also their ability to create a bottleneck in the Ethereum network. That’s because the bots were willing to pay absurdly high gas fees to jump the line. Even if people were able to beat them to the mint button, the bots had managed to price many folks out of the market with expensive gas. Of course, you could try your luck and duke it out with the scalper bots in a gas war, but then you risk ending up like that [one guy](https://etherscan.io/tx/0x0942e29f35eddda383b752eeb94aeec6bfd145d1664182b845e2d367289b201b) who spent $3000 for 10 of the Time NFTs but paid over $60,000 in gas.

### Then there’s the Snipers:

Sniper bots are fairly straightforward; sniper bots live on secondary marketplaces like OpenSea, or notoriously Larva Labs of late, and will go head to head with you while bidding on a particular NFT.

In an auction format, they excel by waiting until the last observable nanosecond on the auction, then proceed to bid nominally higher than you, and thus win the auction that you were almost sure you had in the bag.

It's worth noting, snipers are especially difficult to avoid when it comes to blue chip NFT collections. There’s [one sniper bot](https://www.larvalabs.com/cryptopunks/accountinfo?account=0x1919db36ca2fa2e15f9000fd9cdc2edcf863e685) who’s racked up 467 CryptoPunk snipes, many of which have been later sold at a loss, making this one of the most aggravating and seemingly pointless sniper bots around. Nonetheless, it’s a good reminder that just because bots are efficient at one task, does not mean they are always more profitable than their human counterparts.

### Spoofers, or something else?

[Spoofing](https://academy.binance.com/en/articles/what-is-spoofing-in-the-financial-markets), or artificially moving markets by placing fake bids, is illegal in traditional finance, but it is not legally monitored in crypto or NFT markets.

Many in the NFT space blame price movements of NFTs on “spoofing”. The reality is a bit more nuanced in our opinion.

On the buy side, there are definitely wash trading bots used on the secondary market (OpenSea or wherever else people are buying NFTs). Spoof bidding (which they don’t intend to have filled), intentional wash trading, and other tactics to fake collection activity. At the same time they use multiple wallets, artificially making it look like there is more demand and interest and collection than there really is.

On the sell side, many people blame spoof bots for deploying a sweeping mass of low bids on a collection – a sort of pray and spray bid – where they’re hoping that one or two people will accept their low offer. They then arbitrage these back by selling closer to the actual floor price. Meanwhile, the bots often don’t have enough funds to back up the entirety of their bids across the collection they’re offering on. If enough of these bids are accepted well below the floor price, the available WETH (wrapped ETH used for making offers on OpenSea) will be used up, and further attempts by users to accept those offers will be rejected. This bot-driven activity is often mischaracterized as spoofing.

## Well, what can be done about NFT bots?

### Anti-bot Software

A broad solution is for NFT projects to attempt anti-bot mitigation during the mint process . There are a few simple methods to reduce repeat mints from a single source:

-   Stopping the reuse of signatures and thus limiting the amount of NFTs that one address could mint.
-   Deter bots by giving them a captcha-like test which slows down and _humanizes_ the minting process.
-   Detect repeat mints from the same IP address.
-   Require per-mint authentication via Twitter or Discord.

This isn’t an exhaustive list of what has been tried, but these are some pretty straightforward steps that can help.

### Whitelists

Another way to circumnavigate bots in the NFT space, which already is being used widely, is by adding a whitelist to your minting process.

A whitelist acts like an appointment/VIP list for folks interested in minting a certain NFT project.

Besides sometimes getting a discounted price, adding a whitelist (partially) solves the problem of people missing out on a mint. Instead of rushing for the gates with hundreds or thousands of other people (bots included), a whitelist spot allows you to schedule a time in advance to mint your NFT, ensuring that you get your spot in line but also ensuring that you (hopefully) don’t pay bank-breaking gas fees.

Getting on a whitelist, though, can be tricky. Like trying to get a bid into a college fraternity, different whitelists require different things to get on, and frankly, it often gets political. Some folks are given whitelist spots just for being influential. Others are given whitelist spots for being insanely active in a community (i.e., answering questions in the discord, or by inviting new people to the group.)

As you can imagine, there are problems with whitelists. For one thing, whitelists tend to favor people with more influence, but also, whitelists generally only allow a small number of people to guarantee a mint. This then pushes people to extreme lengths to get whitelist spots. For instance, some degens have offered to pay someone else to remain active in a discord group (called a [‘whitelist grinder](https://thedefiant.io/nft-whitelists-outsource/)’, e.g., tasked with 300 messages a day for 2 weeks) just so they can guarantee a whitelist spot. Plus, we can’t forget, whitelists with simpler requirements can sometimes be infiltrated by bots as well (inviting a whole bunch of fake people to a discord group.)

### Regulation

Last but not least, we could get some resolution with bots by having more government regulation in the NFT space.

Obviously regulation is a touchy subject in crypto. Some degens might prefer the every-man-for-himself environment where regulation is not necessary. One [Redditor](https://www.reddit.com/r/NFT/comments/mhzqgo/comment/gt1yc3z/?utm_source=share&utm_medium=web2x&context=3) espoused this view by saying, “When you are up against the GPT-3, AI, bots, and GANs, there is no winning without curation and/or creator verification. [But] I value my pseudonymity, so I eschew the verification process.”

On the other end, you’ve got people who’ve been burned by bots and who are eager for authorities to chime in. In which case, they might want their government to propose [anti-botting acts](https://www.techtimes.com/articles/268755/20211201/politicians-introduces-anti-bot-act-prohibits-bots-buying-bulk-holiday.htm) to stop people from bulk buying, or more general regulation to halt spoofing in crypto markets.

At Flip, we find this to be a pretty unlikely outcome, as well as one that might end up with more consequences than benefits. While regulation is certainly on the way for crypto, it’s probably going to be more focused on securitization issues than market automation.

## In Summary

Your minting pages, your favorite marketplaces, and your discord groups are already being infiltrated with bots . . . whether you like it or not, the NFT community will have to thoughtfully wrestle with these programmatic denizens.

As we approach the future of NFTs, it seems increasingly important to have intelligent, crypto-native minds leading the debate on how to combat nefarious bots, as well as how to promote benevolent bots, all without crushing the positive aspects of decentralization.

Perhaps one of you reading this has the technical expertise necessary to create a non-invasive anti-bot software, a better iteration on the whitelisting model, or any other conceivable tool to increase the NFT market’s efficiency.

We’d love to hear your thoughts.

Happy Flipping,

The Flip Team


Pixelmon and Loathing


Listen, Pixelmon might be disappointing but it’s not altogether sad.

Once you wade through the wreckage of the Pixelmon fiasco, in some weird way, you could leave with a smidgen of hope . . .

According to their website, Pixelmon was projected to be “the largest and highest quality game the NFT space has ever seen.” And to be fair, their gameplay trailer was pretty stunning; a mystical mix between Minecraft and Red Dead. If you haven't yet, watch the trailer and see if you can mentally justify how Pixelmon raised $70 million in anticipation of their recent artwork reveal (3 eth per mint).

A hyped-up AAA-quality, play to earn game with staking rewards and promises of a land airdrop . . . rightly, some people must have been thinking this could be the metaverse.

The hopeful sentiment; however, didn't last long.

As we now know, the artwork release was, well, not great. The Pixelmon NFTs were indescribably rough, like a trading pack of non-fungible Frankensteins, and prices immediately began to reflect the fact.

As you might expect, the founder went to work on his keyboard, putting out PR fires across social media — even going so far as to explicitly admit the NFTs they released were rushed and of “poor quality”. And yet, his soft-pedaling can’t help coming off as sort of disingenuous, especially considering he’s recently been accused of using Pixelmon funds to scoop up superior blue-chip NFTs like BAYC, Clonex, Azuki, and Invisible Friends.

What’s that line from Margin Call? “Be first, be smart, or cheat.”

It sounds like Pixelmon’s founder was the first out of this fire.

![Pixelmon Ape NFT](https://flip-blog-images.s3.amazonaws.com/Pixelmon_Ape.png 'Image credit: Pixelmon')

Unfortunately, that was just the beginning of the shitstorm for Pixelmon. As days rolled by post-reveal, [more accusations came into view](https://nftevening.com/allegedly-pixelmons-original-artwork-is-actually-stolen-instead/) — folks suggesting that Pixelmon jacked other’s art, poorly paid, and failed to inform a contracted artist that their artwork was going to be resold as NFTs.

It's tough not to jump to conclusions here. We saw the NFTs, and while they’re not much, they also aren't nothing. Clearly some effort was put in, titivation was missing, but the question is: with what intention? Was this merely a flop or an intentional rug-pull? It seems unlikely that we’ll get a definitive answer.

What’s undeniable however, is that for many folks who bought in, the perpetual apologies and reshuffled promises from Pixelmon are not enough. After all, they are the ones bagholding at a 0.24 Eth floor price.

We should clarify though, while the vast majority were indeed burned badly, there are still a select few Pixelmon NFTs that popped off . . . 115 out of the 10,000 item collection to be precise, the “Kevin” species, are quite popular.

Meet Kevin:

![Pixelmon Kevin NFT](https://flip-blog-images.s3.amazonaws.com/Pixelmon_Kevin.png 'Image credit: Pixelmon')

A hulkish creature composed of cuboid chunks of green, brown, and blue, paired with a turd-like strand of angsty purple hair, some scattered bits of gold keratinous nails/teeth, and of course the exotropic eyes bulging out toward the tropical horizon . . . the Kevins are now one very ugly, albeit, expensive meme.

Going for anywhere from 2 to 6 Eth, the Kevins have spawned countless layers of satire and inspired numerous spinoff collections, of which collections, the Kevin Punks aren’t all hot-air.

Tradfi and Sotheby veterans are neurotically scratching their heads in disbelief — no amount of financial algorithms or art-history degrees could have predicted the Kevins’ popularity.

And while we here at Flip empathize with the many non-Kevin-holders who lost money on Pixelmon (some are in the room with us), we do believe Kevin represents a thin silver lining.

Namely, even if the Kevins eventually brodie into oblivion with the rest of the Pixelmon collection, what’s still hopeful was the NFT community’s ability to briefly make Kevins levitate multiples above the floor price. That’s resilience, and that’s why we believe the community of degens are sustainable nihilists. Not the kind of tired nihilists that moan about the weight of existence and chain smoke ciggies next to a Dunkin Donuts in a strip mall parking lot. This is the good kind of nihilism, the kind of nihilism that says: if there is no meaning to be found, if Pixelmon was a rug-pull, then why not boost Kevins to high-art status?

For that, cheers to Kevin.

Happy Flipping,

The Flip Team


A Look into How Your Favorite Aggregator Got Started

So, What's the Story Behind Flip?


It starts with a trio of founders (Sam Hotchkiss, Brian Krogsgard, and Jennifer Jacobs), a tractor, a podcast, and a rude awakening . . .

## The Right Time

**Sam Hotchkiss:**

Preceding his exit from Automattic (the owner of WordPress.com) in 2018, Sam Hotchkiss’ initial, semi-serious goal was to “ride around on my tractor for a few years, play with my kids, and figure out what I wanted to do next.” The tractor riding though, only lasted about six weeks before he caught an acute case of entrepreneurial-restless-leg-syndrome.

And there he was, working passionately again, now as Founder and CEO of Reconnect, a start-up that uses technology to improve outcomes in the criminal justice system. It was not just a smart move, but a benevolent one. Yet, as the company moved from acorn to booming oak tree, Sam noticed how the focus evolved from creating a product to politically selling it.

With Reconnect facing more marketing and less technical challenges, Sam digested the realization that his role as founder and CEO at Reconnect were complete.

He was ready again — to build something new, something that would require his left-brained, shape-rotating mind. Meanwhile, at this point, Sam had a few years of crypto digging under his belt, but didn't know yet where the experiential dots were going to connect.

Soon, he’d find himself chatting with fellow WordPressoooooor, Brian Krogsgard, but this time not about WordPress.

**Brian Krogsgard:**

You may not know that before ‘Ledger’ achieved meme-status on UpOnly and Crypto Twitter, Brian Krogsgard had quietly, thoughtfully begun his exit from the WordPress space, an industry where he’d spent over a decade cranking away as an analyst, building websites, and leading a small but dedicated community.

A loyal and incisive person, it was not a simple decision for Brian to leave the shores of Web2 — he’d been around since 2008 and was fortunate to have watched the WordPress ecosystem mature (today it’s being used by roughly 43% of all websites.) At the same rate, Brian had seen the writing forming on the wall: WordPress was evolving into a more professional ‘lifestyle’ as opposed to the early days where it was still a hobbyist and tinkerer-lead endeavor for many. Certainly, he could have gritted his technical teeth and pushed forward with WordPress, but his interest and subsequent impact in the crypto community were overwhelmingly eclipsing the former.

Even while talking to Brian about WordPress versus crypto career paths, there was an audible difference in his tone; WordPress was tonally equivalent to labor, while the web3 trail, despite being riskier, sounded exploratory and playful.

Thankfully for the crypto collective, Brian swerved right toward adventure and decided to sell his remaining half of his WordPress business for a modest sum of dinero, money that we, the onlooker, can’t help speculating has found a new home in NFTs, Flufs and the like.

From there, it was a rather natural progression to full-time degen — Brian already had one foot heavily anchored in crypto, as well as a wealth of community-building experience — before long, he was fully committed, adding to a number of crypto-related projects including personal investments/research, collaborative podcasts (UpOnly), and content creation (Weekly Open & LedgerCast).

**Jennifer Jacobs:**

A sort of corporate navy seal trained in land (business,) sea (finance,) and air (operations,) Jennifer Jacobs, most recently worked at Reconnect with Sam where she was the Chief Financial and Operations Officer.

Like Sam and Brian, Jennifer went through a career transition a few years back. She jokes that she had “an early mid-life crisis”, a reckoning which essentially entailed her waking up one morning (after decades of building a fulgent resume working for Fortune 500 companies such as General Electric, Unum, and Fidelity,) proceeding to stare at herself in the spiritual mirror and recoiling at the idea that if she didn't change something now, like right now, then she’d spend the rest of her life working in legacy insurance.

Which is to say, when Jennifer finally walked away from big-corporate, she did so with unflinching, nothing-to-lose confidence. She immediately started dipping her feet into Maine’s entrepreneurial waters where she fatefully met Sam and later joined Reconnect — a perfect opportunity to give back through an exciting start-up.

And while compared to Brian or Sam, she might not have been on the crypto scene since 2017, she was certainly not peter-schiff-ian, she admits that she was always open to observing crypto from afar, and like watching a tsunami rolling towards the shore, she intuitively felt the decentralized-wave was coming.

After all, she’d seen the various limitations and chaos that accompanies a centralized approach — she was just waiting to connect with Sam and Brian before she’d find herself talking about NFTs and surfing for the best yields in DeFi.

## The Right Place

Sam and Brian first met years back at WordPress conferences but remained industry-acquaintances for some time, that is until they finally connected on the topic of crypto. Sharing alpha and riding the occasional rug pull to zero together, it wasn’t until then that their friendship blossomed. In hindsight, it would be this virtual volley of crypto chatter between Sam and Brian that would eventually form the conversational substrate for Flip.

Although the precise context is a bit of a mystery, it was sometime in early 2020, when Sam first formally approached Brian with the idea for Flip. The idea was based on a simple premise: _Are you seeing what I'm seeing_ — massive companies discreetly vying for access to crypto order flow and on-chain data (what are people trading, where, and at what volume, etc,.) And while they certainly wouldn’t be the first to recognize the need for crypto market intelligence, Sam believed they could be the first to build a DeFi Intel product that was not cumbersome, unfriendly, or disjointed.

And so Sam, as all great buddies do, nudged Brian, let's be the solution, let's flip DeFi’s on-chain data inside out, create something that can show what lies within the market's gut, but do it with an enjoyable, elegant design. He was adamant that Brian’s extensive knowledge of the crypto marketspace would be vital to creating an unparalleled product. Just as well, he knew that no matter how well-designed or well-marketed Flip’s product was, they’d need Jennifer, someone they could trust unequivocally to keep Flip dynamically managed.

The leadership breakdown would begin as such: Sam would head product and engineering, Brian would head marketing and help on product, and Jennifer would be the financial and organizational glue.

Call it coincidence or call it synchronicity, but the timing could not have been better. Not only was there an opening in the market, but there was room for light in their calendars. They had an idea, they had a team, and they had time. They thought, “Let’s put together a deck and see if we can sell it to ourselves.”

Except they didn’t just sell it to themselves, but turned it around and promptly sold it to investors, too. Not only did Flip secure their initial funding with myriad friendly investors (a major one being CMS Holdings), but they did it in a matter of hours. They even had the Hollywood problem of turning down other potential investors. Sam and Jennifer’s experience with slowly, meticulously trying to acquire backing at prior start-ups was upturned in the course of a day.

Nevertheless, they needed a minute to process and gather themselves. Brian jokes that he hadn't even told his wife about Flip yet. But Flip didn’t care. Flip, as a project, had grown legs and was eager to walk/run into things. The trio used the first round of funding to hire the core product team and start building out the prototype for Flip.

## The Right Product

The scrappy team of six went to work designing and prototyping a Defi toolset. But they still hadn’t told anyone about Flip yet. So they rolled one of the fun, fast-moving tools they’d worked on (dubbed FlipFOMO) into a public announcement of the company.

Over the next couple of months, they realized just how much potential was on the NFT side of the on-chain landscape. They’d known from the very beginning that on-chain data was going to be at the core of Flip’s product, but now arose the question of where to apply that on-chain data so that it positively impacted the most people?

Sam explained, “We started off thinking we were going to create Bloomberg for DeFi and ended up realizing there's a whole lot more value potential in creating Zillow for NFTs.” While this thesis is mildly counterintuitive because DeFi is still larger than NFTs in dollar terms, Sam and Brian were betting that NFTs were the more nascent and far-reaching market. NFTs indeed has onboarded far more people on-chain than DeFi. And they knew they could build really awesome stuff for NFT degenerates (as they themselves identify as such).

So, with a slightly revised thesis in hand, the Flip founders talked things over with initial investors and were grateful once again for receiving enthusiastic support — the investors saw what they saw, over 1,000 NFT collections were being launched every month, and it was a matter of time before the volume pie sliced up well beyond just OpenSea (where the vast majority of NFT trading takes place).

There’s a not-distant future where NFTs trade across dozens of siloed marketplaces (both decentralized and centralized) and it becomes an enormous challenge to collect all that bifurcated market data back to a singular hub.

That’s what Flip does. Flip aims to fill the gap by building an elegant NFT aggregator that gathers the various NFT marketplaces under one cross-chain roof, simultaneously combining multiple wallets, on-chain intelligence, and even some of the social aspects of NFT trading.

From there, they took the finished prototype and their refined vision and raised a Seed fundraising round, which would enable them to further grow the team (including yours truly) and build out an ambitious roadmap to secure Flip’s place as the crypto world’s preeminent NFT hub.

Of course, they are just getting started, but with a dedicated team, an unwavering investor-base and a 4k vision for their product-market fit, their confidence in Flip is . . . based.


NFTs and US Taxes


Because paying taxes sucks as is, we’re going to make this as concise as possible. It is currently March 2022, and if you haven’t started filing 2021 taxes for your NFTs, then you most definitely want to read this quick recap of NFTs & U.S. taxes.

Although the U.S. tax code is yet to specifically address them, it’s generally assumed that NFTs, like the rest of crypto, are considered property and therefore taxable. Whether you bought, sold, or won an NFT, there’s a good chance it was a taxable event. That said, your best bet is to always consult your tax advisor before taking any actions.

## Tax implications for buying NFTs using crypto.

If you bought an NFT using crypto (whether it be Eth, Sol, Tez, etc,) then you have triggered a taxable event regardless of if you re-sell the NFT. This is because you owe taxes on the cryptocurrency that you spent to buy the NFT.

This is also why it is important to keep track of your cost basis (the purchase price) when dealing with crypto – either manually or by using crypto-tax software, you want to figure out the exact price at which you bought crypto and the exact price at which you spent it on an NFT. In the case of purely buying NFTs, the price difference between when you bought crypto and when you spent it will make up your realized crypto gains or losses.

Keep in mind, time plays a factor in determining your taxes — if you held crypto for less than a year before spending it on an NFT, then you will be taxed according to short-term capital gains (the same rate as your income tax.) If you held that same crypto for a year or longer before spending it, then you will be taxed according to long-term capital gains (anywhere from 0% up to 20% depending on your income.) Generally, your tax rate will be lower if you fall within the long-term capital gains category.

## Tax implications for selling an NFT

If you created an NFT and sold it, then your profit (in terms of USD) will be taxed as income (regardless of if you received the payment in crypto and never converted or spent it.)

Trading an NFT directly for another NFT may be a bit trickier than selling an NFT for ETH. Collectibles (like trading cards) are often considered like-kind transactions and can be swapped (but not sold) for other similar collectibles without tax implications. However, there is not yet outstanding guidance for how well this works with NFTs, so your handling of a swap likely requires specific guidance from your accountant on the pros and cons of the decision.

If you simply bought an NFT and resold it, then you will be taxed for the profit or loss that you incurred upon the sale of the NFT. We’ll explain below:

You want to figure out the exact price at which you bought the NFT and the exact price at which you sold it. The time and price difference between when you bought an NFT and when you sold it will determine your realized gain/loss, as well as whether the sale falls under short-term or long-term capital gains/losses.

Don’t forget about gas fees! The amount you paid for gas while buying/minting an NFT can and should be added to your original cost-basis (if you spent $500 on an NFT, but paid $100 for gas, then your cost-basis for the NFT was actually $600.) The same goes for the sale – if you paid a gas fee to list your NFT for sale, then that gas fee should be deducted from your gain or added to your loss (if you sold an NFT for $500 more than you bought it for, but spent $100 on gas to list the NFT for sale, then your gain was actually only $400.)

Keep in mind, if you take the proceeds from an NFT sale in Eth, for example, and convert them to USD, you will be taxed again for the respective price appreciation or depreciation of Eth that occurred between when you received the Eth versus when you converted it.

## Other Considerations

If you received an NFT as a gift and never sold it, then it might not be a taxable event. On the other end, if the NFT gifted was valued at above $16,000, then the person who gifted it might incur a ‘gift tax’.

Additionally, if you received an NFT as a prize from a giveaway, like winning the lottery, it will likely be subject to tax. Figuring out how much you owe for a prize or giveaway can be complicated if the original value of the NFT is not clear, and thus makes this one instance in which you might want the help of a tax professional.

---

As with anything crypto-related, remember to be safe, do your own research, and take your time (and seek input from your tax advisor!) while filing taxes for NFTs.

Happy Flipping,

The Flip Team

---

_Disclaimer: This is not financial or tax advice. This article is strictly educational and is not investment or tax advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant or tax professional. Do your own research. See [Flip’s Terms of Service](https://flip.xyz/terms-of-service) for more details._


Staying on Top of Security Can Save Your Assets

NFT Safety & Security


In light of the recent OpenSea phishing attack, it's definitely a good time to refresh on some ‘best practices’ for NFTs.

Of all the advice we can give on NFT safety and security, the simplest piece we could give you is to **take your time because most scams incorporate some aspect of time sensitivity**. Scammers want the panic-parts of your brain to light up. They want you to make a rushed decision. In many of the cases we will go through in this article, stepping back, sitting on your hands for a minute, and then doing research are good first steps.

---

## Anti-Phishing

Email is a cheap and easy way for scammers to get their foot in the door. It never hurts to **check the sender address** on an email that seems either catastrophic (YOUR NFTs ARE UNDER ATTACK) or too good to be true (YOU’VE WON A FREE NFT, OFFER EXPIRES SOON.)

Some phishing emails will be extremely convincing. Take a step back, **scammers want you to rush in and follow their directions.** Don’t. Even if the sender’s address is not obviously fraudulent, still don’t take immediate action.

Most importantly, **don’t click links or open files**. Simply opening a link sent from a fraudulent source can infect your device with key-logging software. If you click their link or open their file, you might not be doomed, but you should consider doing a careful software cleaning of your device.

Chances are, if there is something important that an exchange or wallet service needs you to do, like correcting your information for tax purposes, you can do it directly within their app (no need for an external link.)

And if you’re really unsure, **reach out directly to customer support** at the service in question – they'll be able to verify whether the email was legitimate or not.

## Never Share Your Seed Phrase or Private Keys

Your seed phrase is what stands between you and all the cowboys trying to steal your NFTs.

**No one should ever ask you to share your seed phrase or private keys** (a rare exception is when you have to recover a lost or stolen wallet.)

On that note, **keep your seed phrase or private keys in a secure, non-digital place.** Don’t keep your seed phrase or private keys anywhere online or on your computer or your smartphone – anything connected to the internet is potentially susceptible to hackers.

Likewise, don’t store your private keys by writing them on the back of a Post-It note, things get lost and ruined. Your keys should be stored on/in something that is relatively hard to get to and hard to destroy.

Lastly, it is best practice to utilize a hardware wallet if you're currently only using a hot wallet like MetaMask on your phone or desktop. By connecting your hardware wallet via the MetaMask software, you can still do all of your desired transactions, but now they will be much more secure as they require physical confirmation via the hardware device.

## Watch Out With Airdrops and Permissions

Everyone loves airdrops, it feels like free money, but don’t let the combination of an airdrop announcement and one too many coffees in your system end up with you getting scammed.

A shady airdrop could include a prompt to grant permissions to your wallet, thus ceding control over your assets.

Step back before claiming an airdrop. **Make sure the airdrop was announced by the verified source**, whether that be an NFT creator or a protocol. Once again, don’t rush, if the airdrop is legitimate, it usually will be claimable over an extended period of time, like weeks, not minutes.

However, if you have already granted permissions to a shady or uncertain project, it's not too late, there are steps you can take to **[remove permissions](https://newsletter.banklesshq.com/p/how-to-protect-your-ethereum-wallet?utm_source=url) that are unwanted or no longer necessary**. In fact, it might be a good idea to check and clean your wallet permissions periodically, regardless of if you think any are compromising.

## Marketplace, Minting, and Buying

At this point in the NFT boom, there are countless NFT marketplaces to choose from.

An easy way to get scammed is by buying or minting an NFT from an unsafe or inauthentic source.

**Make sure that you are [safely minting](https://metaversal.banklesshq.com/p/tips-for-safely-minting-nfts?utm_source=url) or buying from a verified source **(a blue checkmark next to their name on OpenSea)** on a reputable marketplace** (look up the official website for the collection and then click their direct link to the marketplace.)

**Beware, scammers can get verified**, so don’t take a checkmark as proof alone.

**Double-check the name of the collection, the number of items in the collection, the volume traded, the floor price, the description, and the traits section**– these statistics should roughly match what market trackers have listed. If a deal looks too good to be true, if a Bored Ape is selling for 1% of its market value, then it's a scam.

## Check the Smart Contract

For the more technically savvy, you can check the NFT contract yourself.

Does the contract address match the provenance record listed on the NFT collection’s official website? See [this video](https://www.youtube.com/watch?v=JkfswVpj2gk) for a simple explanation of **verifying the contract address**.

As a plus, by reading through the smart contract yourself, you can catch issues, intentional or not, within a developer's code.

---

For now, we hope the aforementioned steps help to restore your confidence and provide you with actionable guidance relating to the safety and security of NFTs.

As always, remember to take your time and do your own research.

Happy Flipping,

The Flip Team

---

_Disclaimer: Not financial or tax advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research._


Ruminations On PFPs


## Why distinguish PFPs from any old NFT?

In determining why we’d distinguish a profile picture NFT (pfp) from any other NFT, taste preferences can quickly become the stick caught in our bicycle spokes. A pfp is like a good song that you hear cranking through the grocery store sound system. You know it's music because it sounds good, right?

But **you** like pop-rock and think Nickelback represents the highest achievement in music’s evolution. Meanwhile, **your wife** likes reggae and thinks Bob Marley broke the simulation with “Three Little Birds”_._ Don’t worry — we are not going to let this discussion descend into an infinitely regressive debate on the relativity of taste.

For now, hopefully we can agree that there are different tastes for different people, and yet there is a reason why people generally don’t listen to police sirens in their free time. Likewise, just because an NFT collection is packaged, marketed, and utilized as a pfp collection, does not mean people can't interpret and interact with the NFTs however they wish. The NFTs themselves are agnostic, they don’t care what you believe about them or what you do with them. So long as the dimensions are there and it's a jpeg, most NFTs could be a profile picture.

Take the case of Bored Ape Yacht Club and their popularity as pfps; there’s probably _someone_ out there who snagged their Bored Ape regardless of if it was a perfect profile picture, a smart investment, or a premier community to join, but rather they privately snagged an ape solely because the ape resonated with them spiritually (they’re currently completing a PhD thesis in Neuroscience, specifically studying Chimpanzee eye-gaze in relation to frontal cortex activity, and simply put, they sometimes feel like a Bored Ape themselves, sipping on Starbucks cold brew and pushing buttons behind inch-thick glass while they prod an even more bored, less intelligent ape to watch slide after slide of photos lazily pulled from shutterstock.)

![Ape sits with human skull in its hands](/updates-ruminations-on-pfps.jpg 'Photo by Sebastian Hages on Unsplash')

Others might have snagged their Bored Ape as a sardonic cash grab. They saw folks changing their profiles to apes, numbers going up, and so they bought. They never changed their profile pic and they sold ten weeks later, emotionless toward the transfer of their ape but elated by their newly plump eth balance.

Suppose though, you're neither of these aforementioned people, you’re not in it just for the art or the money. If you’re in it for the profile picture . . . if you're going to spend hundreds or thousands or potentially even millions of dollars worth of crypto on a pfp, then you probably also care to some degree whether there is an objective basis, no matter how tenuous or trivial, that qualifies purchasing a profile pic as opposed to drawing from your camera roll.

## What Distinguishes PFPs?

At the risk of sounding like a network news panel, we spoke to Deeze, one of Flip’s resident experts and a sort of high priest in the NFT world.

We wanted to ask Deeze about a lot of projects, but given there are now as many pfp collections as there are stars in the milky way, we figured it’d be best to start with his thoughts on CryptoPunks as a sort of ekpyrotic starting point for pfps.

Hoping to understand in reverse, we asked Deeze why he thought punks took off as pfps in particular and Deeze had a number of poignant remarks:

For one thing, he said, punks are fitting as pfps because they utilize “super simple pixel art that is clean.” Not only are the punks colorful and attention-grabbing, but also, “one pixel differences are easy to differentiate and they look just as good when they’re 24x24 pixels as they do scaled up on billboards.”

The aesthetic measurements of a pfp are not insignificant; size, resolution, and color play a subtle factor in an NFT’s profile-pic-ability. We see it with the punks and apes, it just works. And sure, Van Gogh painted with lots of color, but if you try to upload \_Starry Night \_as your profile picture, all you'll see is a mosh of twisted brush strokes. In terms of NFTs, Art Blocks are a prime example of a collection, that despite massive popularity, just don’t seem to fit well as pfps (whether they’re too abstract, too detailed, or too whatever, one could debate.)

Deeze added that CryptoPunks are one of the first NFT projects that “stuck around” like a virtual family — and despite punks lacking diverse utility, the community members maintained relevance via discussion. Another og punk, 6529, plucked a similar chord on Twitter, saying, “pfps are not like fine art - 99% are worthless without a community using them.”

Ok, so perhaps what delineates a pfp is especially in social flux — its relevance is shifting according to the ocean of users who mint, purchase, and interact with it on Discord, Telegram, etc,. In this sense, pfp collections function a bit like digital country clubs, they are not just regarded for their content, but also for their historical context, their current members, and their network activity.

And maybe for CryptoPunks, aesthetics and community were enough to create the perfect memetic storm; however, these are merely descriptive factors, not prescriptive formulas. Punks were a sort of big-bang event in the pfp world. As the non-fungible environment expands and cools down, so too will the rules.

Personally, we’re still wondering what comes next. Does the criterion for _what makes a pfp_ tighten with the passage of time, or are the parameters pulled open as we approach the future of NFTs?

Squinting into the future, Deeze had a personal hunch as to what direction pfps might take.

Future pfp collections, he said, “will need to take a lot of execution risk and tap into unique niches that aren't addressed already,” of which he cited Azuki as a prime example — a collection that pushes beyond the aforementioned CryptoPunk approach and instead plans to literally spill out into the real world with meetups, exhibits, and music festivals. While this is not entirely revolutionary (BAYC, for instance, has significant derivative uses through Kennel Club, Mutant Apes, and meetups of their own,) it's reasonable to say utility has entered the chat, people are expecting more than just a picture with their newest pfp.

Whether it be Punks, Apes, Penguins, Seals, or Azuki . . . tentatively, a limbo-bar has been set for pfps, vague lines have been draw, aesthetics, community, and now utility are hallmarks of the structure, though this wobbly pfp scaffolding begets more poking.

It seems likely that there will be many small refinements to the pfp world — there are infinite ways to mimic and rebrand the existing collections. We’re curious as to what could categorically disrupt all previous pfp models?

We’d love to hear your thoughts.


Why NFTs?


Odds are if you are seeing this you know something about NFTs, but let’s break it down real quick: NFTs are unique digital claims to assets: a form of receipt or deed. Most things we own are not interchangeable (non-fungible). They are very specific. To own a share of a company is as good as any other share of that company, but to own a car is to own a very _specific_ car. We carry a claim, physical or perceived, to almost everything in our lives.

An NFT is a _superior_ receipt. It provides both origin and activity for the life of the item it represents, and can be designed to live for a very long time. Some items can live entirely within the NFT itself. A fully onchain piece of digital art, while uncommon, can exist fully within the NFT and be extremely resistant to long term digital rot.

What is digital rot, you ask? It is the process of links, pictures, and assets associated with NFTs (or anything on the internet for that matter) breaking down and disappearing. Solutions to harden the reference point are being developed rapidly, but we will lose thousands of today's NFTs due to digital rot from DNS expiry and other reasons that are a result of reference point fragility.

Most NFTs are not themselves the desirable good, but offer primarily receipt characteristics:

-   They offer a point of reference to where the item actually lives
-   They provide proof of origin (provenance)
-   They provide a traceable ledger of activity over time.

## NFTs do not stop with art.

NFTs as digital art is the ideal landscape around which to build a proof of concept for NFTs. Limited regulatory requirements, excellent product market fit, willing participants on both the creation and collection ends, and other reasons make it an incredible industry to build this technological toolset with. But art is just an entrance point for the technology of NFTs.

Think back to where we started. NFTs are _superior receipts_. Once we reframe our understanding of the tech, we create a new world of possibilities with its application.

At Flip, we believe that NFTs will represent proof of ownership for most digital and physical goods that benefit from such receipts or verification: event tickets, music, real estate, game items, physical and digital collectibles, and even public records. NFT driven authenticity verification is superior to alternate methods in nearly every way.

Additionally, NFT representation of item ownership establishes standards for many other tools to utilize, including creating fungibility from non-fungibility. Many revolutionary financial instruments are already utilizing NFTs in full or in part of their designs, including fractionalization of an NFT, receipts for a Liquidity Provider position, and representation of an option’s position. Defi's usage of NFTs in protocol design is just beginning.

Anything that can be represented via NFT can therefore inherit many of the tooling innovations designed around it. Greater composability unleashes stronger standards, better user experience, enhanced liquidity for historically illiquid objects, and more benefits.

## Where are NFTs going?

Ethereum Layer 1 dominates NFT trading volume today. Due to high transaction costs and other reasons, it limits what makes sense to transact as an NFT. The future is multichain and multilayer. This fragmentation of the market allows for users to maintain greater flexibility of where they store their assets and how they interact with the larger ecosystem as a whole.

As Ethereum L2s (and alternate L1s) develop further, we will see the elimination of the bulk of gas cost (cost to trade or create NFTs) that will allow cheaper, more accessible NFT projects to flourish.

## Flip roadmap

Flip is building tools and experiences for the vast world of NFTs for years to come. For now, that is best represented by art and collectibles, and that’s what our (soon to launch) public beta is for; it’s a platform for discovering, researching, and tracking NFTs in a delightful and powerful way. We aim to help you receive actionable intelligence around the art-centric NFT ecosystem, and also use it as your daily hub to better track and understand your NFT portfolio, or the NFT portfolios you follow.

We are just beginning. We know what we're building, we are building fast, and we are having fun. As we prepare the public beta, we have enabled [username sign-ups](https://flip.xyz) for all. Don’t forget to register your username. And if you’re excited about what we’re doing, help us spread the word!

Thanks for joining us on this journey.

Happy Flipping,

Brian, Sam, Jennifer, and the entire Flip team


The Multichain and Multilayer Future


Here at FlipMetrics, we are hyper bullish on the Ethereum network. However, we see Ethereum L1 as the center point of multiple layers and multiple blockchains, within the broad ecosystem.

To date, the most developer activity and user activity lives on Ethereum. It is, of course, not without its flaws, but it is the standard for blockchain centric computation.

Layer 1 alone cannot scale, and will not for a long time (or ever). Layer 2s and focused alternative Layer 1s will be an important part of the crypto ecosystem for a long time to come. Interoperability between these and Ethereum L1 (and between each other for that matter) will be very important.

A lot has to align when you’re working cross chain, in what should be a trustless system.

-   Portability of application
-   Liquidity fragmentation
-   Finality assurance
-   Shared information states

There’s so much to consider (these are just a few examples), and I’m no expert, but lets just say it is not easy. And the more applications spread out amongst various L2 solutions and alternative L1s, and the more those applications need to interact together, the more important the seamless interoperability becomes.

## Let’s isolate the liquidity issues

Let’s say you have 1 million ETH pooled for trading. If that 1 million ETH are all on Ethereum L1, that’s fine and fairly easy, though fees won’t be fun. A good DEX aggregator can manage the cross-pool liquidity fragmentation and the user is happy.

Now, let’s fragment some of that ETH to Arbitrum, and some to Optimism, and some to BSC, Solana, Polygon, and so on. You either need a lot more ETH to come provide liquidity, you need much better capital efficiency, or you need to be able to execute trades across chains.

You can see how this can be a problem. Ideally, a robust multi-chain multi-layer trading ecosystem would improve on all three fronts, and I think it will. This is a single pair of a single asset with a core onchain activity. Ideally, the user could be filled for their trade in the origin chain, even if the execution of the trade is aggregated across multiple chains. Or at least, the user can aggregate the best price on the origin chain even if their custody ends up multichain.

You can apply similar problem sets for borrowing and lending, NFT marketplaces, and pretty much any other crypto activity.

The potential of a multichain ecosystem is so high, and the solutions still necessary to make it all work nicely are huge! Including with FlipMetrics. Naturally, we’ll support ETH L1 from day 1, and then we’ll try to get the best cross-layer cross-chain coverage we can get from there.

Building multichain tooling is a huge potential growth area for crypto, so I thought I'd share just a bit of how I'm thinking about it.

Have a great weekend!

Brian Krogsgard (aka [@ledgerstatus](https://twitter.com/ledgerstatus)), [FlipMetrics](https://flipmetrics.com) cofounder


Is the NFT renaissance real?


Hey there!

Interested in working in a fast-moving Defi startup? Well, we're hiring a [senior backend developer](https://www.indeed.com/cmp/Flip.xyz). Get in touch!

---

The NFT landscape went ballistic, within and outside of crypto, extremely quickly. It was an easy tack-on to the massive increase in interest for collectibles in the physical world, and a natural outlet for risk-on appetites within crypto.

There was a crescendo as NFTs were featured on an SNL skit, Beeple sold his every-days for $69 million, and 7 figure punks were flying left and right.

It all cooled down, but now renewed interest is here. If you just look at [Open Sea monthly volume](https://duneanalytics.com/rchen8/opensea), it looks like it never went away. But top-end prices definitely went down. Floor prices went down on major collections. However, cumulative users kept growing, total collections increased a ton, and the liquidity spread out, causing a mini bear market in individual NFT prices.

​[Axie Infinity](https://axieinfinity.com/) is leading the charge of the resurgence, but it's not alone. All the big collections (punks, meebits, hashmasks) are seeing increased activity, and new ones are finding communities (bored apes, craniums). But the gaming space appears to be in the lead of the resurgence, whereas some avatar-based projects are doing well, most are junk and appear to be doomed to be worthless.

NFTs can be much more than art, and the most common NFT art collections have been for avatars. Gaming integrations is the most obvious integration. Axie has an entire world I don't fully understand, but you have to begin the game with three characters, which currently set you back about .1 ETH each. From there, the game is play to earn.

And people are playing. [Amy Wu has a great thread](https://twitter.com/amytongwu/status/1412875602030301190) on the enormous growth of Axie, which recently earned $1 million in revenue in a single day.

NFTs go beyond art, and beyond gaming. Uniswap version 3 liquidition provision includes NFTs as receipts, and there are even some interesting [tax implications](https://twitter.com/TokenTax/status/1412451283441786881) for that.

I like to think of NFTs as titles. Receipts of ownership, and presumably of authenticity. Such receipts can be used in a myriad of ways. Art is simply a fun example. Unfortunately, I think it too strongly silos NFTs so that most people put them in a "for fun" mental lane and have a hard time escaping that mindset.

Uniswap v3 is a great way to start breaking out of that thinking. Eventually, I think the ERC-721 spec (the primary NFT specification) will be just as popular as the well-known ERC-20 spec. Both are incredible innovations just beginning to be fully explored. [ERC-1155](https://eips.ethereum.org/EIPS/eip-1155) opens up an even wider array of possibilities, particularly around fractionalization.

So, is the speculative renaissance real? Sure, NFTs are fun again. I don't know that it can get as red-hot as it was; and it makes me think that perhaps it's a dead-cat bounce for these art collections' monetary value.

But NFTs as core technology within the crypto ecosystem is as real as it gets. And if you aren't already, it's time to start paying attention to the various ways they are being introduced to Defi protocols and other smart contract applications.

See you soon,

-   Brian Krogsgard (aka [@LedgerStatus](https://twitter.com/ledgerstatus)), FlipMetrics co-founder


Some insight into moves in Defi for Tradfi

Defi for Tradfi


This week, [Compound announced](https://compound.finance/treasury) support for anyone to get a flat 4% interest utilizing the Compound protocol by sending fiat, converting it to USDC, and letting the Compound "Treasury" entity manage the yield aggregation.

Compound is up 85% off its lows, and has been a clear outperformer in defi assets since the announcement.

Any profits from seeking yield, which they say will be strictly in stablecoins, will enable Compound to make a profit. Traditional finance entities can participate in Defi for astronomical rates (relative to what they're used to), without getting their hands dirty.

This is just the beginning of Defi for Tradfi. Traditional institutions can use the wrapper of sending money to another entity as their method of finding exposure without having to consider all the hard questions themselves.

KYC/AML, custody solutions, and whatever else they find challenging when onboarding to crypto can be managed by going through a traditional middleman. Then the Defi protocol's for-profit arm can provide the middleman services and skim some of the yield off the top.

Ta-da.

Centralized exchanges are also getting in the mix. Coinbase CEO Brian Armstrong [wants to wrap Defi](https://www.coindesk.com/ceo-brian-armstrong-flags-self-custody-defi-access-as-coinbase-priorities) into an app-store like experience. From Coindesk:

> Armstrong promised to send more products to new international markets, while still working with regulators “in more established markets,” and that “any app built on decentralized crypto rails will be accessible to users of the Coinbase app.”

Whether exchange, protocol, or progressive tradfi institutions, the current (even suppressed) Defi yields are too attractive for these entities not to dip a toe.

---

Now, let's answer a couple of questions we got [on Twitter](https://twitter.com/FlipMetrics/status/1409968850439872514)! Let's start with an easy one, because I just talked about it some.

**​**[**Janus asks**](https://twitter.com/JanusSpans/status/1409970407344676868) **what should an industry standard be for more realistic yields?**

Compound didn't land on 4% for no reason. I think in most industries, carrying a 4% yield (high yield bonds, stock dividends susceptible to underlying asset movement) still carry significant risk. 4% on a stablecoin carries smart contract risk (which can already be insured, and will probably be more so over time), but little else. And folks I've asked think 6-8% will still be possible in a deep bear market. So if we average it down and say Compound could have a tight squeeze during hard times, 4-5% seems reasonable.

**​**[**CryptoDetz asks**](https://twitter.com/CryptoDetz/status/1409969875041148929) **what happens when wallets require KYC?**

It's going to stink. I imagine the answer will be that a centralized exchange that offers fiat offramp will require the user KYC wallets that coins moved through. It sounds like it could get all kinds of hairy. There are so many questions, it could be a nightmare, depending on how draconian the regulations are (should they come). Crypto needs more people in Washington.

**​**[**Leftsideemiri**](https://twitter.com/LeftsideEmiri/status/1409969153750888451) **asks what's the biggest barrier to mainstream adoption now?**

User experience. That's it. We need mobile first, easy to use self-custody solutions. Or, mobile first, easy to use custodian solutions that have access to Defi tooling (see Coinbase news above). It needs to be just as simple as Venmo, with superior features to both banks and fintech.

It will come.

---

See you next time!

-   Brian Krogsgard (aka [@LedgerStatus](https://twitter.com/ledgerstatus)), cofounder of [FlipMetrics](https://flipmetrics.com)​


The outskirts of Goblintown


Last weekend, we released an update to [FlipFOMO](https://flipmetrics.com) so you can now search by a specific token, and it will backfill transactions based on your criteria (slippage, min price, token name). This should make it more interesting as you can get specific trades for specific coins rather than a live-only feed.

This was handy already for finding some Coinbase-related [shenanigans with KEEP.](https://twitter.com/FlipMetrics/status/1404858681984962564) Today, we're seeing it again with BOND and a few other tokens. I'm hearing that Coinbase's API was teasing out new tokens for a while, and is now fixed. I don't know if it's just been that, or if leaks are occurring otherwise, but it's showing up on-chain pre-listing as these tokens move prior to announcements.

We hope you enjoy the new filter! If you want to sit at your desk all day with FlipMetrics open, watching your favorite token's trades stream in, we won't mind :)

We have a lot more updates both for FlipFOMO and broader transaction views on the way.

Enjoy the rest of the newsletter, and we hope you have a great day!

-   Brian (aka [Ledger Status](https://twitter.com/ledgerstatus)), cofounder of [FlipMetrics](https://flipmetrics.com)​

---

## Remember the TITAN

A bunch of people asked us if we could explain what happened with Iron Finance. The short version is that the governance token went to 0 as the under-collateralized “stablecoin” [lost its peg](https://irony-97882.medium.com/the-melting-of-iron-89469b01e083):

> The idea behind the IRON stablecoin is one of “efficiency”. Other on-chain stablecoins like DAI are over-collateralized. For every $1 of DAI, there’s ~$1.75 worth of crypto assets in the DAI system. In the case of USDC (and supposedly USDT), there’s $1 sitting in a bank account somewhere for every $1 on-chain. Couldn’t we do better than that?

The whole story is wild, including how $270m got locked in the contract because the code didn’t include “greater than or equal to” rather than just “greater than” 0 to redeem collateral.

IMO, [Jon Wu](https://twitter.com/jonwu_/status/1405577702162112512?s=21) has the best overall piece on what happened, and how it was inevitable.

It’s never good when “what we never expected to happen” ends up exactly what happens. When the stability of the network is contingent on the price of the token, it’s doomed from the start; it just matters who triggers the domino effect. Looks like it was [Loops](https://twitter.com/22loops/status/1405195546059476997) and co.

---

## The outskirts of Goblintown

For active traders and long term investors alike, the markets have been in a tumult this week. At this moment, ETH sits just above its 200 day moving average. Bitcoin lost its 200 day a while back.

By almost any measure, we began a bear market weeks ago. Now that we're down over 50% from the highs, most of us are feeling it. The question is whether it’s cyclical or secular.

I was a big believer that we’d have a mini bear market this year. I didn’t expect it this soon, but I also didn’t expect us to go up so quickly. Even if we do recover from here, I expect it’ll take some time to “repair” the chart, and a period of no-new-highs consolidation is in order.

Best case scenario, my personal take is that we have a chance to make new highs toward the end of the year. That’s unfortunately my best case scenario.

---

_The information in this newsletter should not be construed as investment advice, it is purely educational and entertainment material and you should always do your own research before buying._


The DL on TVL


_While we keep working away on FlipMetrics, here's my take on TVL, a topic of frequent debate. I hope you enjoy it. If you do, please tell your friends to subscribe to the newsletter :) We'll have fun stuff every week._

_-_ Brian aka [Ledger Status](https://twitter.com/ledgerstatus) (co-founder of [FlipMetrics](https://flipmetrics.com))

---

Total Value Locked (TVL) is a common measurement for Defi project adoption. Should we care? What do we really learn from it? What is included in TVL? Is this even actionable or help determine network value in any real way?

That’s what we will cover in today’s newsletter.

At its core, TVL is the total value of assets engaged in a protocol, via staking, LP, lend/borrow, or other interactions. This typically excludes the protocol's own tokens, but we'll get to that.

​[DefiPulse](https://defipulse.com/) categorizes TVL amongst five categories: Lending, dexes, derivatives, payments, and “assets”.

## “Locked”

First off, “locked” is quite a deceptive term. Most protocols don’t keep assets locked in a real sense (though some do!), and most of the time, all it takes is a transaction or two to “unlock” or remove tokens from a protocol.

Some projects have bonus reward tiers for locking tokens longer — a quality ponzinomics scheme. In the meantime, the tokens given back to the user can be used in governance, or even carry value themselves.

Let’s provide three examples of locking. Don’t worry, these aren’t the only TVL mechanisms, because in Defi people have variations on variations of everything.

### Soft locked

​[Aave](https://aave.com/), [Compound](https://compound.finance/), and other lending protocols create soft-locked TVL. If I deposit 100 ETH and borrow $50,000 USDC, I’ve “locked” that 100 ETH into the lending protocol. Of course, I simply repay that $50,000 USDC to unlock it, and it’s all done.

Now, what’s fun is I can also take that $50k and go lock it up some more. We’re locking on locking on locking because what could possibly go wrong? _Keep in mind, any time you borrow against collateral, it's now leveraged and in market turmoil, your margin ratio may need some new collateral to protect the initial._

### Time locked

A fun newer example of creative TVL is [Alchemix](https://alchemix.fi/). Alchemix loans “repay themselves over time.” :: deep breaths :: notaponzinotaponzinotaponzi :: deep breaths :: (Okay, it's not a ponzi, it just sounds like one).

By depositing our $50k (say, of Dai) we borrowed from Aave (this may be a bad idea!), we can mint (and borrow) up to $25k of alUSD without liquidation risk. Our initial $50k will now earn yield through various strategies and the rewards of that yield will go toward paying off the $25k borrow so that we can forget it was ever a thing. And now we can go have fun with the $25k! Maybe roll the snowball of debt further or do some other yield farming. We are heavily incentivized to leave our deposit… forever? Or at least until we can withdraw it without paying them back.

That is some Grade-A time-locked TVL. Alchemix gets to count our full $50k of DAI deposits toward their TVL and it’ll be pretty sticky.

​[Cream](https://app.cream.finance/) had a good example of a more pedestrian time-locked TVL last Defi Summer. I’m too lazy to check how they do it now. Basically, you earned better APY if you agreed to keep your lending or LP tokens locked up in their staking contracts for a longer period of time. It helped stabilize the pool liquidity and rewarded people who agreed to lock for longer. TVL secured.

Many protocols use similar tiered reward mechanisms for staking their own governance tokens, as it helps prevent farm-and-dumps. However, tokens of the base protocol that get staked and timelocked for extra rewards aren’t typically considered as TVL ([enter Sovryn drama](https://cointelegraph.com/news/pomp-sparks-debate-has-bitcoin-defi-project-sovryn-really-overtaken-uniswap-v3-by-tvl) stage right) because they are all native protocol assets rather than assets from the broader Defi ecosystem being utilized within the current protocol.

### Black hole locked

The most fun example of TVL is where it’s a legitimate black hole. [Curve](https://curve.fi/) is the most interesting example, and the recently launched [Convex Finance](https://www.convexfinance.com/) version is the most fun. Curve rewards CRV to protocol participants. When a user locks their CRV for four years they get the full rewards of veCRV.

Convex Finance is an additional protocol that brings liquidity to this rewards mechanism. One can take CRV, convert it to cvxCRV, and on the backend Convex locks that CRV as veCRV and tokenizes the cvxCRV to the user, which when staked or utilized within the system will reward the veCRV rewards.

So, you get veCRV like rewards inside of Convex, without sacrificing liquidity. And all those CRV that get converted to cvxCRV go down the veCRV black hole (a four year lock) and are perpetually renewed by Convex.

That’s a black hole.

## What counts as TVL

In this scenario, CRV that gets staked on Curve isn’t proper TVL (as it’s their own governance token). Whereas CRV that gets converted and staked on Convex does count as TVL for Convex, because it’s someone else’s token staked on their system.

Thus we now have some understanding of TVL, right? No? Here’s the smell test.

Does a protocol have a bunch of _other_ protocols’ tokens locked in its smart contracts? Stables, ETH, altcoins? That’s TVL. Does a protocol have a bunch of its own token locked on its platform for governance and staking rewards? That doesn’t really pass the TVL smell test.

## Does TVL matter?

Yes. Kinda.

The thing of utmost interest in Defi protocols is _utilization_ in my opinion, and whether that utilization can turn into _protocol profits_. TVL is indication that a protocol is utilized, whether by raw activity (transaction counts) or value of assets engaged.

Is TVL perfect? No, far from it. Is it worthless? No, it gives a snapshot of utilization. How well a protocol monetizes that utilization is a different story. Whether that utilization is sticky (will people still use this protocol when the yield farming free money dries up?) is very, very important. TVL won’t tell you that story all by itself.

TVL is a nice thing to know. Just like total protocol revenue is nice to know. And several other metrics. It is not an end-all-be-all, and it does not indicate the true value of a protocol all by itself. It’s a piece of the puzzle for valuing Defi projects.


Updates