One thing that definitely piques my curiosity are NFT drops, the initial issuance of NFTs for sale. An NFT drop essentially is similar to a stock IPO. However, when you buy into a collection at its drop, you don’t know beforehand precisely which NFT you’ll get. You can picture it as kind of like buying collectable cards. You purchase a pack and know that you’ll be getting Panini soccer stickers or Pokémon cards, for example, but you don’t know exactly which ones in advance. Maybe you’ll get lucky and draw world soccer star Lionel Messi or an awesome Pokémon like Charizard. But, then again, maybe you’ll only end up with Austria’s second-string goalkeeper or the ridiculous fish Magikarp.
Do you remember the Bored Ape Yacht Club from the first part of my story? That collection was dropped in April 2021. The price for one of the 10,000 apes minted stood at 300 US dollars at that time. Today, just nine months later, the cheapest ape costs well over 200,000 US dollars. Extremely rare specimens fetch even several million US dollars.
Directly buying into an initial NFT offering can have advantages – just like with a stock IPO. The biggest profits often arise when you buy into a popular collection right from its inception and your NFT’s price climbs sharply afterwards in secondary trading.
There are a number of different websites that provide information about upcoming Solana NFT projects. I find a few projects there that are within my budget, but most of them look very amateurish to me. They often lack their own website, or sometimes a project has only a handful of followers on Twitter – and sometimes I simply don’t like the NFTs. All the ones that look promising exceed my budget of 0.3 Solana. I decide not to participate in a drop.