Goblins Gone Wild

GM frens,

It’s been another busy week in the Web3 World.

Last week we broke down Goblins.wtf in limited detail.

While this project was initially thought of as a joke, it has quickly become one the hottest NFT projects in recent months — reaching a 8 ETH floor yesterday.

Today, we will be breaking down how this project that started as a free mint 10 days ago has received such a substantial amount of attention.

Goblins Gone Wild

Breaking down the rapidly developing success story of the Goblintown...

As Elon Musk says: The most entertaining outcome is the most likely

This is how we would best describe the current success story goblintown.wtf — the latest NFT project that has captured collectors attention.

Doing The Opposite

NFT sales have been down in recent weeks when compared to figures we saw in September 2021.

Market conditions outside the Web3 World have been in large part to blame for this downturn, however, in the lead up to this slow down we also saw projects such as Yuga Labs drain large amounts of liquidity out of the market.

In response to this, we are watching NFT consumers embrace projects that are taking the opposite approach by offering collectors free mints.

Humble Beginnings

On the 22nd of May, 8999 Goblins were minted for FREE.

During this stealth drop whereby the founders of this project didn’t reveal themselves — they did, however, engage with a number of thoughtful people in Web3 World who brought the project to the community's attention.

The project immediately resonated with a large group of people, and the price of these unique looking NFTs began to skyrocket.

By the end of the first day, anyone lucky enough to have minted a Goblin would already have netted themselves 1 ETH ~ $2,000.

Another BAYC…

The only thing that travels faster than the speed of light, is rumors in the Web3 World.

This point was perfectly illustrated when the rumor began to spread across Twitter that goblintown.wtf was a stealth drop from none other than Yuga Labs.

Despite the fact that this rumor was quickly squashed — it brought even more attention to the project as the floor price continued to rise even higher.

By this point, the floor price of this 5 days old project was close to 2 ETH.

Low Mint Price, High Profits

While secondary sales provide projects with great profit margins, most projects make a large percentage of their revenue from the initial NFT sale.

Yuga Labs has made significantly more money from the sale of BAYC where they netted 800 ETH & the MAYC drop where they netted 30,000 ETH vs the 24,925 ETH they have earned to date in royalties from these collections.

In the case of Goblintown.wtf, they did not receive any compensation to create this artwork, although they did keep 1,000 for themselves.

Total secondary sales for Goblintown.wtf have exceeded 22.2K ETH — providing the team behind this project with 1,582 ETH ~ $2,892,615 courtesy of a 7.5% royalty fee on each secondary sale, 3x the royalties fees of BAYC.

Patterns?

There have been a number of projects that appear to have certain similarities with Goblintown.wtf such as Mfers.

On February 22nd the average price for a Mfer was 6 ETH

Yesterday, the average price of a Mfer was 2 ETH.

Goblintown.wtf is by no means deemed to this destiny, as there could very well be a talented team behind this project who have much bigger ambitions.

Scarcity

While the bear base for Goblintown.wtf is that the founders stop developing this project — the bull case is that these NFTs are becoming valuable as a tool to send a social signal as they become more scarce.

As the price of most goods goes up, the demand goes down, however, as the prices of profile picture NFTs go up — they become a more effective means to communicate a social signal that you are wealthy, similar to a Rolex watch.

Is this enough for Goblintown.wtf to sustain these prices? Probably not, however, it’s certainty an emerging use case for these rather unique looking NFTs.

3 Things You Need to Know

1) #rektguy redefines the meaning of ‘Rekt’

OSF, creator of rektguy worked for Barclays bank only several months ago.

Now, his NFTs are being bought and collected by the likes of Snoop Dogg. Rektguy was another free mint. First of all to collector’s of OSF’s previous pieces of art, and then to the public.

In the last 7 days, the rektguy collection has seen 4,346 ETH trading volume at a near 1 ETH average, trading as high as 2 ETH recently.

2) The NFL partner with Mythical Games to launch NFT Game

The NFL are going all in on Web3

After partnerships with various crypto entities, socios and DraftKings - the NFL have decided that creating their own ‘Play-and-Own’ NFT game is next on the agenda.

The bear market doesn’t seem to have dampened the spirits of many people in sport when it comes to crypto related partnerships.

3) Mirror launch Writing NFTs

Imagine you could prove you were one of the first 1000 people to read The Ground Floor newsletter via an NFT?

Well with Mirror’s latest drop, that may well be becoming a reality. Proving that are part of a contributing team to read whitepapers, contracts and more is really interesting.It seems every type of medium in media is going to somewhat be impacted by NFTs.

Tweet of the Week

Free NFTs: The new standard?

Incentives are often misaligned in the NFT world…could free mints be what brings them back to a level playing field?

Community Update

Degen Dungeon Dao

A Floor community lead DAO recently opened.

“Degen Dungeon Dao” was created by the Floor community to make it easier for people to enjoy the fun of the Degen Dungeon channel in the Floor discord without having to spend all the time in there.

Floor Community members pooled some ETH into the DAO that is ran using PRYSM squads, a platform that “turns your group chat into a collector DAO. Gather frens, pool money, collect NFTs as a team, and win.”

The DAO currently has 28 members with up to 1.3 ETH in reserves and is looking to make purchases soon for those who can not be online in the Degen Dungeon 24/7.

Thanks for the read,

See you next time! — OB1, Pet & Corwin.

This newsletter is for informational purposes only and does not constitute financial or business advice to any person or entity.