Here's how traders are flipping NFT collectibles for quick profits
- Rare Cryptopunk owner plans to sell the pixelated non-fungible token collection for $91 million.
- NFTs beat traditional crypto assets in terms of profitability for traders; market sentiment drop and uncertainty do not influence the price.
- Over $11 million worth of a new NFT collection of Pudgy Penguins sold on secondary markets in the past 24 hours.
NFTs are attracting users due to their uniqueness and higher profit-booking opportunities on peer-to-peer marketplaces.
Pudgy Penguins NFT collection fetches $11 million on secondary markets
Crypto traders are flipping NFT collectibles and digital art for over tenfold profits on peer-to-peer marketplaces. The first-ever NFT was created in May 2014, live at the Seven on Seven conference at the New Museum in New York City.
Following this experiment, Etheria, a fully-fledged NFT project, was launched at Ethereum's first developer conference DEVCON 1. Etheria offered 457 purchasable and tradable hexagonal tiles (each hardcoded to 1 ETH) that went unsold until a renewed interest in NFTs attracted users.
On March 13, 2021, all of Etheria's tiles of the current and prior versions sold for $1.4 million. Since then, NFT projects have lured crypto enthusiasts and art collectors due to their exclusive offerings like membership to clubs or events.
In the first week of August 2021, the monthly USD value transferred for the top seven NFT marketplaces has hit $356 million. OpenSea has captured 97% of the NFT transfer volume.
The daily trade volume on OpenSea averages between $40 million to $60 million based on DuneAnalytics data.
Daily trade volume on OpenSea
The most popular NFT on OpenSea is Cryptopunks, a pixelated NFT collection that clocked over 1,000 sales for a total of $166 million in the first week of August. The owner of the rare Cryptopunk wants to sell it for around 35,000 ETH or $91.64 million. The rare NFT sold for $2 million in its last transfer on OpenSea.
NFT prices are not affected by market sentiment or other factors that influence crypto prices. That explains why the owner is pricing his NFT over 45 times above the last traded price.
Another NFT collection that is currently popular among crypto enthusiasts is Pudgy Penguins. The collection has a total of 8,888 penguins, and the limited supply is driving the demand higher. Over $11 million worth of digital Penguins has been sold on secondary markets within 24 hours of launch, on August 11.
The NFT collector and trader behind the Twitter handle @notEezzy shares that it is easy to flip NFTs for profits.
NFT flipping literally soo easy wtf
— notEezzy (@notEezzy) August 9, 2021
4 days, 18x profit, $300 to $5,500 pic.twitter.com/PdRWGyK7n1
@notEezzy has previously flipped NFTs to turn $600 into $56,000 in a few trades on OpenSea, and he shared the transfer details in a Twitter thread.
While NFTs are currently in demand, some experts are concerned about the speculation around prices and the uncertainty in profit booking. Ari Paul, founder of Block Tower, a blockchain investment firm, tweeted:
If you’re buying NFTs because you want to own provably scarce art, that’s awesome. If you’re buying NFTs that pumped 100x in the last 6 months as speculation..careful. If you’re not part of the insider pump group, you’re probably gonna lose money. Almost guaranteed in aggregate.
— Ari Paul ⛓️ (@AriDavidPaul) August 12, 2021
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
