Analyzed more than 300,000 wallet transactions and found six methods of NFT! How do whales make money?

KingData ·2022-04-22

Written by: Jason Levin
Compilation: TechFLow intern

Note: Recently, two professors from the University of Chicago wrote a paper "Investor Experience Matters: Evidence from Generative Art Collections on the Blockchain". By analyzing the transactions of 692 NFT series and more than 300,000 wallets, they found that experienced All NFT traders will have the following 6 things in common, these tips increase the profit of each trade by ~10%, summarized by Jason levin.

Tip 1: Avoid Roadmaps

While it may sound incredible, it is the truth. Projects with a roadmap are 8.5% less likely to sell out, and after 7 days, they are 9.8% higher than the Mint price… but after 28 days, they are 5% lower than the Mint price. Why? Too many projects overpromise and fail.

Tip 2: Avoid Derivatives (Except Apes)

Cypherpunk derivatives were 3.7% less likely to sell out, and after 28 days, they were 65.8% less expensive than Mint. The one exception is the Boring Ape derivatives, which are 5.3% more likely to be minted, and after 28 days, they are up 1,256% from the Mint price.

Tip 3: Avoid 3D Art

While 3DNFTs are 2.2% more likely to be minted than regular NFTs, after a month, their prices have dropped by 23% overall! 3D art grabs attention quickly but can't seem to keep it up.

Tip 4: Grab animation and music projects

While minting animation items was 5.3% less likely than regular NFTs, after 28 days they were 38% more expensive than minting. And with music items, people were 7.7% likely to collect them, and after 28 days, they were 71.5% more expensive than the launch price.

Tip 5: Pay attention to artists on Twitter

Research shows that artist collections are 6.1% more likely to sell out, and after 28 days, these NFTs are up 72.2% from their launch price.

The study also showed two other things:

  1. Experienced traders get 43.5% higher returns when trading the same series of NFTs.
  2. Experienced traders get 39.5% higher returns when trading the exact same NFT. how can that be? ? ? Check out tip 6.

Tip 6: Hold for less time

Experienced traders who hold NFTs for much shorter periods of time believe in buying low and selling high. Advice from the author:

"Experienced investors tend to sell well-performing NFTs, while inexperienced investors tend to hold them".

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