Who spends over $40 million on NFTs? Meet Deepak Thapliyal
The intrinsic value of NFTs are to the beholder.
Why would anyone in their right mind spend over $40 million dollars on “JPEG” images that are on the internet? One could say that it sounds mad, crazy, unnecessary, and plain ol’ stupid to do. But, there are many reasons why I, Deepak Thapliyal, have spent a vast sum on NFTs. Let’s talk about a few points below.
Disclaimer: Before reading, please note that these posts are the opinions from the author and do not constitute investment, trading, nor tax advice in any capacity. The views of the author are exclusively their own and not a representation of any corporate entity or organization.
Treasury
When purchasing NFTs they could have a multitude of purposes. One of those reasons are for treasury purposes. The phrase “blue-chip NFTs” is one that is used to describe NFTs that are created by reputable companies that have a wide audience and reach. These are ones that have any combination of utility, access, art, or more, that resonates within the community that owns it and the broader NFT community as a whole. That means these NFTs have secondary markets that have liquid value and have a significant amount of volume per week. These are blue-chip NFTs.
With that belief, it is a strategic move to re-allocate some of your treasury in these blue chip NFTs to diversify your portfolio. Some of these NFTs may have low volatility and in some cases favorable upside that during market turmoil can hedge against swings in the overall trading markets of cryptocurrencies. However, doing it can also causes financial losses as well, so you should really consider your facts and circumstances beforehand.
Art
Many collectors, including myself, genuinely love the art that goes alongside the NFT. The NFT is a digital representation of authenticity to the art piece and is guaranteed to be fraud-proof. In a world filled with fake Picasso’s and other legendary artwork, fraud-proof authentic art that is guaranteed with every purchase, if done correctly, is a game changer.
You now have peace of mind to buy your art for your collection without worrying if it’s truly authentic. You can build a collection of art that is borderless, easy to move and hold, and connected to a global market at will. This is a heavy disruptive catalyst for the art industry.
Value
We have seen over the past year floor prices for blue chip NFTs soar from single digit ETH prices to triple digit ETH prices on a single NFT. This has caused a market opportunity of art becoming a tool designed to not only capture an artistic gem but to also capture value. There are countless stories of people making a lot of money in the NFT space time and time again (bare in mind people have also lost a lot). Most recently, we have seen the success of Moon Birds, which as of today sits at nearly a 40 ETH floor from a 2.5 ETH mint a little less than a week ago! By all measures that is insane! Now that doesn’t happen so often, but it’s happening which means value is, without a doubt, there.
So why was over $40 million dollars spent on NFTs? In sum, for treasury purposes, collective art vision, and value plans. The intrinsic value is ultimately to the beholder. Many have varying thoughts on why they make a NFT purchase. There could be reasons for which I didn’t cover today, like simply an NFT that is a ticket to a concert or a collectible to a fashion brand, etc. While I was personally a little late to the party, that doesn’t negate the fact that rarity in collections, growth in the market, and a longer, broader, reach is out of the realm of possibilities. In fact, in my humble opinion, I think the best has yet to come.
— Deepak Thapliyal.
lolz bro.