Throughout 2022, applied solutions with NFT were actively developed in various projects. The technology audience continues to grow at a tremendous pace due to the adoption of social media technology. This year, certain NFT-related tools have been introduced by Twitter (audience of about 400 million users), Reddit (audience of about 430 million users), Meta (Facebook and Instagram) and Youtube also announced their plans to implement NFT.
An idea
Based on these data, we can consider a long-term portfolio, taking into account the prospects for the development of the segment of non-fungible tokens.
We would propose to divide the portfolio into two parts, the first would be the liquid basis, these are the tokens of the projects that provide the infrastructure for the NFT. The Polygon blockchain turned out to be the most popular for applied solutions, therefore, with the growth of the audience, the whole ecosystem can also develop, respectively, the demand for the native blockchain token will grow, Other top blockchains — Ethereum and Binance Smart Chain — can get a comparable effect from the development of NFT.
Another interesting application implementation of NFT is Telegram’s Fragment platform, which currently sells virtual numbers for anonymous registration and domain names for the future Telegram Web3.0 ecosystem. It is likely that in the future the supply will expand, and the demand for the native token will increase.
We propose to form the second part of the portfolio from specific tokens of various promising NFT tokens. In a growing market that is expected to take place in the second half of 2023 and all of 2024, collections with high social capital can rise in price several times over.
Entry point
Today, there are amazing conditions for opening long-term positions for at least 1-2 years, preferably 3 years or more. The ongoing scandals around centralized exchanges are constantly putting pressure on the value of the native token of the Binance exchange. And rumors around the potential centralization of Ethereum due to the transition to PoS, with validators predominantly located in the same jurisdiction, also negatively affect the price of ETH in the medium term.
The market as a whole continues to be in a global “downtrend”, which opens up the opportunity to buy tokens at lower prices.
Assumed portfolio structure
- Polygon (MATIC) — 20%
- Toncoin (TON) — 20%
- Ethereum (ETH) — 10%
- Binance coin (BNB) — 5%
Another 5% can be allocated to ApeCoin (APE), which acts as a native token in the developing metaverse of the company, the owner of the world’s most popular NFT collections Bored Ape Yacht Club, CryptoPunks and Meebits.
The remaining 40% can be distributed among different NFT collections.
For example, find interesting offers among applied projects from social media, such as collections from Reddit or Twitter. Perhaps invest in a “beautiful number” from Telegram. Next year, the first “drop” from VK is planned, where you can also try your luck. It is worth keeping track of projects with a wide audience that will release their collections.
Risks
The first part of the portfolio is quite conservative by the standards of the crypto market, it lists well-established reliable projects that have many growth and development factors other than the NFT segment, so the risks for 3/5 of the portfolio do not exceed the total risks for the market.
However, the rest is an extremely risky investment. It should be taken into account that non-fungible tokens have several orders of magnitude less liquidity, and predicting the value of NFTs in the future is essentially no different from tossing a coin. But, with all this, investments can pay off many times over under a successful set of circumstances. So, one token that has risen in price can potentially cover the cost of all the others. But there are absolutely no guarantees that this will happen with you, with the collection you have chosen, with the tokens of which you will be the owners.
Therefore, it is worth investing in this strategy only that amount, at least half of which you are ready to lose forever.