NFT11: The Line in the Sand
Quick disclaimer: You all know me by now, an investor and an avid fan. I write during my past time and would like to share my research with you. Despite being a bull, I aim to give a fair overview of NFT11’s progress and overall health. I still encourage you to do your research. None of these should be considered investment advice.
Finally, we can bid farewell to the problematic Poocoin liquidity issue and welcome our new investors from different launchpads! So, let’s head out straight with the numbers and see it from there.
As of writing, we now have 10.1k followers on Twitter, 5.1k followers on Telegram, and 10.6k followers on Discord. To my knowledge, this sums up to about +30% monthly growth. These all happened while we have a rogue Poocoin liquidity, no CMC listing, and no Coingecko listing.
As for the 4 IGOs, we can see that Matic Launchpad did very well as they were able to reach 91.46% of the 45BNB target. Milkyway Launchpad made a measly 9.27% from its 98,800 total NFT11 tokens for sale. And as for the other two, D-Reit and Daostarter, it is still quite unclear to me how many sales were made there. If you happen to know how much, let us know in the comment section.
NFT11 market now sits at 7,100 token holders. This sums up to about 500 wallets that have fled either permanently or temporarily.
As of writing, 5,392 wallets are holding up strongly the 21,349 Legends. This directly equates to an average of 4 legends per wallet.
As for the Stadium Seats, 1,003 addresses hold the 4,109 seats. This also directly equates to an average of 4.1 seats per wallet which is just parallel to the purchase limit during the seat sale.
Historically, since liquidity was made available by some private wallets, the NFT11 token price has been on a downward trend. We were trading at $1.30 a token during our Dashboard Pre-sale where we buy them at $1.65. During these past two weeks, it has been trading at a measly $0.65 to $0.75 a token.
It would be easy to blame the low liquidity provided by the private wallets, but actually, the downward trend is essentially due to holders wanting to sell.
See, having low liquidity would affect your trading results because of the slippage. But it is not necessarily evil. You can always lower the volume to a point where the slippage is below your threshold. Below 5–10% slippage is acceptable, provided that you will be staying at a profit from a trading opportunity if there exists one. It is a decentralized world we are building after all.
Had you sold your 1,000 tokens in one go, you probably would have saved $5 in BNB gas fees but surely have lost 70 to 80% value due to the slippage. This trade could end up pulling the price to an all-time low, maybe to $0.10 for a brief second, and then normalizes back as it moves with time. Clearly, no 1,000 token holder was uneducated enough to execute this kind of trade.
Similarly, if you purchase 1,000 tokens in one go, you probably would have shot the price up to the moon by 4 folds and sent our token to an all-time high prematurely. Weirdly enough, some purchases like this were executed on Poocoin.
Having low liquidity is presumably neutral especially if you are aiming for faster price action. If we put liquidity of 1:1 ratio, what we get is a stable coin and we don’t want that. There is still about 3M BUSD that the team holds which they promised to add back as they monitor the price activity. I’d also like to remind you of the additional liquidity that would come from Startup SG. Will they bail us out from the sub-$1 zone? We will find out.
Now that we have laid out the numbers, let’s review our roadmap. It begs the question, “Are we on track?”
I’ve been keeping an eye on NFT11’s progress since Day 1 and here are some of the current milestones we have to overcome before we take off to the moon. Here are as follows:
1. Legends Revamping — Status: ongoing with Grid Synergy.
2. Legends Repricing — Status: 30 tokens per Legend, as per Malaka AMA.
3. Legend Sales — Status: Schedule TBA.
4. Club Avatars — Status: Twitter Activity Done. Ready for launch?
5. The Marketplace — Status: 1 month behind.
6. Move Cards — Status: Twitter activity ongoing. Might be launched soon.
7. Seat Sale of the other 60% remaining — Status: Schedule TBA.
8. Stadium Test — Status: Schedule TBA.
9. Stadium Launch (scouting) — Status: Schedule TBA.
10. CMC and CG listing — Status: submitted.
11. Alpha Launch — Status: Alpha testers finalized; Scheduled Q2 2022.
So, can we really pull off a triple-A game by June 30, 2022? Truth is, NO. First of all, the budget for the creation of a AAA game ranges anywhere from $50 to $500 million and we are nowhere near that. It might also take us a decade to launch that knowing we only have 11–20 game creators from the CTO side of the business.
That being said, let’s change the question to: “Can we pull off a beautiful game by June 30, 2022?” I’d say, YES! As per Solthos AMA, the CTO side of the team has already started developing the game even before our IFO round. Give or take, they probably are waiting for the assets to be completed and be deployed to the game. After all, it’s just one stadium with some 22 players interacting with some complex game logic. If done correctly and beautifully, it can easily be rated as a III game.
To elaborate further, “III” (Triple-I) has been used to refer to independently funded (“indie”) games that meet an analogous quality level in their field; i.e., indie games that have a relatively high budget, scope, and ambition.
I hope these facts kept you centered on your investment.
Just a bonus, I’ve listed some FAQs from the Telegram and I hope this clears out some of the questions you might have.
1. “Why post liquidity 15mins earlier?”
“Listing procedures take some time and there were multiple procedures for us to go through so we started our process a few minutes before listing time to make sure everything was prim and proper with Apeswap.”
2. “Why is 80% of the liquidity not locked?”
“For those who are wondering the contract address holding ~80% of the tokens, that is our vesting contract for our tokenomics. please check out our whitepaper on our tokenomics.”
3. Why not $1m liquidity?
To be fair, the liquidity started with $1 million (NFT11-BUSD pair) and fell drastically as 500 wallets tried to exit the market all at the same time. Currently, it now sits at $640,000.
Chance’s also added. “We will be adding 3m in total, but for the initial liquidity we are adding in 1m while monitoring the activity as documented in our newsletter.”
A lot of new folks are wondering how having low liquidity is considered healthy. Well as mentioned earlier it lies around the neutral zone, but in my perspective, it is clear that the team chose to shake the “paper hands” out from the equation, ergo, healthy for the long term. Which I believe is true btw. Again, I’m not part of the team, I don’t represent the team and this is purely my opinion. Tell me what you think in the comment section.
What can we expect next?
Well, it’s not that easy to answer. But since you already reached the end part of the article, I’m convinced that you might also want to hear my opinion.
Let me start with what I did during the IDO launch. I just observed. Selling at a loss is not part of my strategy. So, while I am on the sidelines, I’m doing my best to stay neutral, calm, and collected. I tried my best to learn from this experience and how I can use it for my next investment.
I know there would've been an opportunity for me had I sold maybe at $1.50 then buy it back at $0.65 which is true, but instinct just paralyzed me from hitting the sell button. It was never my strategy is to sell at a lower price I bought it.
Sure, you may say “what's the point of being too early when you are only making a loss?”. Sure, had you come in just today you probably would've accumulated more tokens. But have you heard that Legends would be now sold at 30 tokens each which used to be 10? As we all know, there are still 60% of the seats be sold. Do you think the team would just allow it to depreciate? I don’t think so.
We can expect that the price will stay sub-1 dollar for quite some time but surely, some of those wallets that left may also start coming back as soon as some bullish news comes out.
Remember, time in the market is better than timing the market.
The paper hands have already sold, which means the remaining 7,100 holders are the very strong ones. Essentially, what we are seeing right now at $0.65 is most likely the bottom. This is very healthy long-term as new investors come to pick up where the others have left off. This is where we draw the line in the sand and tell the world, this is where we start.
Thanks for reading my article. If you liked the content, please follow my Medium page. Also, follow me on Twitter @trdrmorz. I’ll see you all, at the next one.