WAGMI is Bullshit
— By Frederic Chemaly
Whenever you sell your NFT, someone’s buying it at the top, and he’s probably going to take a loss on it. The DeFi rotation between protocols to search for the highest yield is not sustainable, with no added value to the whole crypto world. Only the quickest and smartest will survive, and that’s why we’re not all going to make it.
For the past year, we’ve seen a huge rise in NFTs and Defi. People are making life-changing money and bragging about it on Twitter. But they do not want you to hear the other side of the story. The side where people are buying overvalued NFTs at a ridiculously high price, and then realize that it was just a hype that faded away, and that they are left with an image of a monkey, worth nothing, that they paid thousands of dollars for.
“We all gonna make it”, aka WAGMI, is a slogan you most probably saw on Twitter or discord if you’re in the crypto sphere. This acronym is widely used to build confidence, and encourage the community to not lose hope in a project even in its darkest days.
Timing the market is nearly impossible in crypto trading, and the same applies to NFTs. The NFT you’re buying now for 2.5 ETH, might be worth nothing tomorrow. But by doing so, you’ve successfully made the seller’s day, by letting him sell at the top and securing his profits. NFTs, by definition, are illiquid, so not easily converted into cash. You can list your NFT at the floor price, and still not find a buyer if the project is dead. A low number of holders/buyers leads to a low volume of activity, which will make your NFT harder to sell unless you undercut the floor price by a lot. This can lead to a cascade effect if done excessively, and shake the project if there’s a lack of fundamentals. When you 10x your investment after mint, you can say that you made it, you secured the bag, but someone’s money is now stuck in an NFT when the hype fades out. This whole grind for a WL, mint, sell high in the hype, then move to another project is not sustainable. Not everyone is making it, especially this guy or girl, that bought your NFT at the top.
You can predict that a project is going to go big, by analyzing different factors. These factors are different depending on the timing. Analyzing a project pre-mint is mostly based on the community and the core team. Because you’re basically investing in a group of people hoping that they can actually deliver the roadmap they planned. If you’re checking a project post-mint, some additional factors can intervene, like trading volume, and floor price action. This analysis is essential for you to always be on the winning side, and actually “making it”. There are always going to be risks when investing in early-stage projects, but that’s where the biggest reward comes from.
The same principle applies to DeFi. The trend nowadays is to keep switching ecosystems and finding the highest yields on your money. And hopefully getting out before it all collapses. (3,3) means that if we all stay in the Ponzi scheme, we all win. But they rebrand it under the slogan of WAGMI, to incentivize people to hold on and bear the losses, to hopefully one day make it out of here with some profits.
Most of the times, whales get in the earliest, due to their connections and huge purchase power, and secure a big chunk of a project’s coins. They then start selling when the regular investor is buying. When you buy a newly listed coin on Binance, you’re actually securing the profits of someone who got it for 100 times less.
We still didn’t reach the real utility of NFTs, most of the projects are laying on huge promises, that will most probably not going to be executed. People are jumping on the train, hoping to make money in this industry, or trend. Most of the people are here just for the money, and not for the actual utilities. NFTs are more than buying low and selling high, whether digital art or property, we’re still in an early stage of revolutionary technology, that will most likely change the way people deal with centralized entities, and especially their data sharing policies. We will reach a point where NFTs will become mainstream, and using them will be a no-brainer, just like we do with the internet and online banking nowadays. This whole NFTs flipping hype will be dead by this time.
People will realize that it’s not sustainable and that there’s more to this tech than just trading. The future is utilities.